Risks and Mitigations

• Borrower Default Risk:

• Mitigated by: Collateral retention, repayment history, and user-triggered default resolutions

• Benefit: Defaulted loan funds return to Earn users, incentivizing active participation

• Market Volatility Risk:

• Mitigated by: USD-denominated repayments and market-driven pricing

• Smart Contract Risk:

• To be mitigated by: Future audits planned post-launch, funded by protocol income

• Open-source code allows for community review