THIS PROJECT IS IN BETA.
YOU CAN LOSE 100% OF YOUR FUNDS PROVIDED TO THE LIQUIDITY POOLS.
USE AT YOUR OWN RISK.
INTERACTING WITH THE UNION PROTOCOL CARRIES SUBSTANTIAL RISKS. BY INTERACTING WITH THE PROTOCOL, YOU ACKNOWLEDGE THAT YOU UNDERSTAND AND CONSENT TO ALL THE RISKS INVOVLED.
Scalability Risks. The Union Protocol exists on the Ethereum Blockchain. Currently, the Ethereum Blockchain is experiencing unprecedented levels of congestion. Not only does this cause higher transaction fees (gas), but also failed transactions. Union is not responsible for gas fees on transactions, failed or completed, and is not required to refund gas fees for said transactions. Multiple failed transactions can cause a smart contract to malfunction and operate in a manner that was not originally intended.
Smart Contract Risks. Coding errors or unexpected utilization vectors may potentially allow for vulnerabilities that allow a malicious actor to drain the smart contract’s assets, cause the smart contract to malfunction, or render the smart contract unusable. Union smart contracts have been audited both internally and by 3rd parties. However, security audits do not eliminate all risks. Never send assets you cannot afford to lose to any smart contract.
Administrative Risk / Centralization Risk. It is not uncommon for Decentralized Applications to have admin keys for smart contract, liquidity pools, and other operational wallets. These keys allow for contract upgrades and emergency shutdowns. If a malicious actor steals the admin keys, the smart contracts could be compromised. We are in the process of launching the Union Decentralized Autonomous Organization (DAO). Until that time, the administration keys are solely controlled by the Union team.
Oracle Risk. Oracles serve as a third-party data source for smart contracts. If a malicious actor is able to manipulate this data feed, they are able to create an artificial arbitrage opportunity by falsely increasing or reducing the value of a virtual asset that is being feed into a smart contract. Union has partnered with Chainlink to be our premier price reference data provider and may rely on other vendors for feeds that Chainlink does not provide. There is no assurance that Oracle data will be consistently accurate or that contracts engaging with an oracle provider will be immune to exploits.
Dependency Risk. Decentralized Applications are designed to work in tandem with other Decentralized Applications. The larger the transaction sequence grows, the greater the risk that one code error may have dramatic repercussions throughout the sequence and ultimately cause the ultimate intended transaction to fail.
Stable Coin Risk. If a stable coin being utilized in a protection pool was to significantly decouple downwards from its $1.00 peg, the pool liquidity would be greatly affected. Union Decentralized Applications are only compatible with the most trusted stable coins – such as DAI and USDC.
Exercise / Claim Risk – Protection Pool. Liquidity Providers to protection pools earn yield every time a protection product is purchased from the protocol. You may lose some or all of your virtual assets while interacting with the protocol. If a protection event is successfully triggered, the protection payment is funded by assets in the pool. Pool assets are distributed proportionally from the entire pool. Never send assets you cannot afford to lose to any smart contract.
Locked Funds – Protection Pool. All protection pools are subject to Minimum Capital Requirements (MCR), Solvency Capital Requirements (SCR). If either of these levels drop below the mandated thresholds, liquidity providers will be unable to withdraw their funds until the levels return to the mandated thresholds or the protection policy expires. Never send assets if you cannot afford to lock them for the duration of the protection policy. Furthermore, to prevent gaming of premiums, liquidity providers are subject to a time lock, currently set for 7 days upon the provider’s deposit, which prevents withdrawal during the time lock.
Transferring uUNN Tokens. Purchasers of protection receive uUNN tokens. These uUNN tokens are minted once a user purchasers protection. If a protection event is successfully triggered, you will need to send your uUNN tokens back to the protocol to redeem the agreed to amount of stable coin. If you send someone your uUNN tokens, you will not be able to claim your protection, unless the uUNN is returned to you by the person.
Data Management Risk. Union collects a minimum required amount of data when users interact with the Website and the Protocol. Union securely stores this data in accordance with our internal information security policy. If a malicious actor steals this data, they would possess various non-PII data on users who accessed the Website and/or Protocol.
Website Downtime Risk. The Union Protocol was created to be interacted with directly on-chain. Notwithstanding, the Union Protocol can be accessed through this Website. If you solely access the Union Protocol through the Website, and the Website is down, you will be unable to interact with the Protocol. You could be subject to liquidation and unable to withdraw your funds. Never send assets you cannot afford to lose to any smart contract.
YOU WILL NOT BE COMPENSATED IN CASE OF ANY LOSSES RELATED TO THE UNION PROTOCOL.
IF YOU DO NOT AGREE WITH ANY PART OF THIS DISCLAIMER, PLEASE LEAVE THE WEBSITE AND DO NOT ENGAGE WITH THE UNION PROTOCOL IN ANY WAY.