Risk Documentation

By using the Napier Protocol and Napier App, you acknowledge and accept the associated risks. This section outlines the main categories of potential risks; however, it is not exhaustive. You may encounter risks that are not described below.

Risk Categories

1. Smart Contract Risk

Napier undergoes rigorous security processes, but as it is built on smart contracts, there remains a possibility of unauthorized access or loss of funds due to unforeseen bugs or vulnerabilities exploited by malicious actors.

2. Market Risk

The prices of Yield Tokens (YT) and Principal Tokens (PT) are influenced by market demand and broader crypto market trends. Consequently, the value of your holdings may fluctuate, and returns are not guaranteed.

3. Liquidity Risk

Low demand for certain tokens or liquidity pools may lead to difficulty executing trades at desired prices, resulting in delays or losses when selling assets.

4. Technical / Operational Risk

Napier is a complex protocol. User error or insufficient understanding of yield tokenization or trading mechanics may result in unexpected losses. Proper understanding of the system is essential before interacting with it.

5. Regulatory Risk

Cryptocurrency regulations differ across jurisdictions and may change over time. Future regulatory developments could restrict the use of Napier Finance or its associated tokens in certain regions.

6. Counterparty Risk

Napier interacts with third-party curators, protocols, and smart contracts. Any vulnerabilities or exploits in these external systems could lead to losses. Napier is not responsible for losses originating from third-party protocol failures.

7. Interface Risk

The Napier App (app.napier.finance) displays data retrieved from the Napier Protocol. While carefully managed, bugs, code vulnerabilities, or human errors could result in incorrect information or malicious links being shown due to external attacks.

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Before You Use Napier

To mitigate potential risks, users are encouraged to:

• Review the official documentation and risk disclosures

• Test with small amounts before committing larger positions

• Verify contract addresses via official repositories

• Understand the risks of any third-party integrations

• Stay informed on applicable regulations and tax obligations

This section is for informational purposes only and does not constitute financial advice. All users interact with the Napier Protocol at their own risk.