Risk Disclosure
DANGER
EXNIHILO is experimental software. Use at your own risk. Only trade with funds you can afford to lose.
Smart contract risk
The protocol has not undergone a formal security audit. While the codebase follows security best practices (ReentrancyGuard, CEI, SafeERC20, reserve invariants) and has ~150 tests, undiscovered vulnerabilities may exist.
Loss of funds
- Your maximum loss on any position is 100% of the USDC fees or the full liquidity if you are LP provider
- Positions can lose value rapidly if the price moves against you
- There are no stop-losses or automated risk management tools
LP risk (force realize)
The LP NFT holder can force-realize underwater position at any time. When this happens:
- Locked tokens are sent to your address
- Your Position NFT is burned
Price divergence
EXNIHILO pool prices are derived from the AMM's own reserves, not external oracles. Pool prices can diverge significantly from external market prices, especially in low-liquidity pools.
Liquidity risk
- Small pools have high slippage on large trades
- If backed reserves approach zero, positions may settle unfavorably
No upgradeability
The protocol is fully immutable. If a bug is discovered, contracts cannot be patched. New deployments would be required.
Regulatory risk
DeFi protocols may be subject to evolving regulations in your jurisdiction. Users are responsible for understanding and complying with applicable laws.
No guarantees
The protocol provides no guarantees of profit, liquidity, or availability. All interactions are at the user's sole risk.