Risk Disclosure

1.Smart Contract Risks

SpinPigs runs on smart contracts deployed to the Polygon blockchain. While our contracts have been internally audited and tested, no smart contract is guaranteed to be free of bugs. Undiscovered vulnerabilities could result in partial or total loss of deposited funds.

Additionally, SpinPigs depends on Aave V3 for yield generation. Any issues with the Aave protocol (bugs, governance changes, liquidity crises) could affect your funds or the interest earned.

2.Position Lottery

When a group fills (5 members), positions are assigned randomly using on-chain randomness. Your position determines when you receive your payout and how much interest you earn:

• Positions 1-2 (40% chance): Receive payout early, earn the most interest.
• Position 3 (20% chance): Middle position, moderate interest.
• Position 4 (20% chance): Late payout, low interest.
• Position 5 (20% chance): Last payout, zero interest earned.

There is a 40% chance you will receive position 4 or 5, which means less or no yield compared to traditional platforms.

3.Admin Controls

The contract owner has significant administrative privileges:

• Pause: The owner can pause all deposits, payments, and withdrawals in an emergency.
• Emergency Withdraw: The owner can withdraw all contract funds (designed for emergency recovery, not normal operation).
• Configuration Changes: The owner can modify payment intervals, pool settings, and collateral requirements.

Currently, ownership is held by a single wallet. We plan to transition to a multi-signature wallet (Gnosis Safe) with a timelock for greater security and decentralization.

4.No Guarantee of Returns

Interest rates on Aave V3 are variable and fluctuate based on market conditions. The estimated yields shown on the platform are projections based on current rates and are not guaranteed. Actual returns may be higher or lower than displayed.

5.Only Risk What You Can Afford to Lose

Do not deposit funds that you cannot afford to lose. Cryptocurrency and DeFi protocols carry inherent risks including but not limited to smart contract bugs, blockchain network issues, stablecoin de-pegging events, and regulatory changes. Only participate with funds you are fully prepared to lose.

6.Gas Fees

All transactions on Polygon require MATIC for gas fees. You must hold sufficient MATIC in your wallet to join groups, make weekly payments, and withdraw payouts. Gas fees are separate from your pool deposits and are not refundable.

7.Not Financial Advice

Nothing on this platform constitutes financial, investment, or legal advice. SpinPigs is an experimental DeFi protocol. You are solely responsible for your own investment decisions. We strongly recommend consulting a qualified financial advisor before participating.