Recursive collateral
BOROS is both collateral and the traded asset. A price decline can reduce collateral value while a position loses.
Know what can break.
This is a high-risk leveraged product. Losses can consume all deposited BOROS.
Oracle manipulation
A thin spot market may be moved economically. TWAP, deviation checks and liquidity thresholds reduce risk but cannot remove it.
Liquidity shortfall
Profitable traders depend on reserved vault assets and insurance. Severe deficits can trigger reduce-only mode or ADL.
Smart contracts
Code can contain defects. Pauses and bounded configuration reduce impact but do not guarantee recovery.
Keeper and RPC
Stale observations or service outages can pause funding, liquidations and new exposure.
Regulatory
Leveraged crypto derivatives may be restricted or regulated in your jurisdiction.
Protective states
The protocol can reject saturated exposure, lower effective leverage, raise bounded funding, enter reduce-only mode, delay unsafe withdrawals and activate ADL as a last resort.