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.


Risk
What happens
How it's mitigated

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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