Risks
Stormbit contracts are audited by Cantina and Pashov Audit Group with zero critical findings. 396 tests across protocol and options engine. UUPS upgradeability with multi-sig controls and emergency pause.
Smart contract
Exploit or bug in protocol code
Dual audit (Cantina + Pashov), 396 tests, multi-sig upgrades, emergency pause
Insurance counterparty
Options venue fails to settle the put option
Established venues (Deribit). Diversification planned. On-chain options over time
Insurance gap
Accrued interest above protection level may not be fully covered
Protocol insurance fund. Strike can include interest buffer
Capital lock
Funds in active loans are locked until maturity
V0 terms are 7-14 days. Unallocated funds withdrawable anytime. Exit Full Position to wind down
Oracle
Incorrect price feed at origination or settlement
Multiple oracle sources with staleness checks. Prices used only at origination and maturity
Market
Extreme volatility beyond historical norms
Conservative LTV (50-75%), short terms (7-14 days), insurance sized per loan
Not financial advice. Only use capital you can afford to lose.
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