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VIGOR Protocol Risk Disclosure

1.Lending is not without risk. Lenders receive rewards for a reason. Lenders provide the bailout protection for loans that get liquidated. During a bailout event, lenders automatically receive liquidated debt and any associated collateral tokens. Bailout proceeds are possibly a net loss, shared by all lenders according to percent contribution to solvency. Lenders hope to gain more in lending rewards than they lose to net bailout proceeds.

2.If eosio.rex reaches the 90% lent level, a liquidity crunch, then user may not be able to transact EOS until rex is liquid again. If eosio core chain features aren’t working, the Vigor dapp may not work either.

3.All EOS deposits go into REX and wait for five days to become liquid. Users can withdraw immediately any EOS that has already been matured if there is any available. If not then users need to wait for the next REX maturity date.

4.As the lending pool loans out tokens, there is not of the liquidity remaining for all lenders to withdraw at the same time. The lending pool enforces a maximum lending limit to attempt to maintain liquidity.

5.Savings is the least risky activity on vigor, but is not void of risk. Savers would only take loss in a catastrophic event after all lenders/insurers are wiped out and after final reserve have no more capacity, as savers are most senior.

6.Borrowers must maintain collateral ratio above 100% otherwise they are sent to bailout. Bailout means their debt and an equal amount of collateral (if available) will be taken and given to lenders.

  • Bailout
  • Bailout assigns debt and collateral to lenders on loans that need to be recapitalized. bailout assigns debt and collateral to lenders on VIGOR loans that need to be recapitalized. {{$action.account}} agrees that bailout assigns debt and collateral to the lender: {{usern}} for a loan that needs to be recapitalized.

The Vigor Protocol and Smart Contracts are fully decentralized, have no single owner, maintainer, developer, controller. Your use of the protocol is therefore entirely at your own risk - YOU MIGHT LOSE EVERYTHING USING THE PROTOCOL. There is no entity or person to recourse to in case of partial or total loss of any assets or digital tokens. PLEASE CONSIDER CAREFULLY BEFORE USING THE PROTOCOL. In extremely rare circumstances it is possible that your assets or digital tokens might remain unaccessible for a period of time. NEVER LOCK IN THE VIGOR SMART CONTRACTS AND PROTOCOL MORE DIGITAL TOKENS THAN YOU CAN AFFORD TO LOSE AND/OR BEING UNABLE TO ACCESS FOR A PROLONGED PERIOD OF TIME.