Disclaimer

Last updated April 4 2025

Balanced is a decentralised peer-to-contract protocol built to create a synthetic stablecoin and trade cryptocurrencies across multiple blockchains. It’s made up of free, publicly available smart contracts, and its code is open source.

Balanced is not insured by the FDIC or any other agency. All risk of loss is borne by the user.

Risks

Using Balanced involves multiple risks, including losses tied to deposited assets and fluctuating token prices. Only use Balanced if you fully understand and accept these risks.

Smart contract risk

Balanced smart contracts have been audited, but there’s always the possibility that a bug or vulnerability may cause the loss of participants’ funds. Recovery may not be possible.

Liquidation risk

If your collateralisation ratio falls below the liquidation threshold (118% or 125%, depending on the collateral type), some or all of your collateral may be liquidated to reduce your risk. If your debt is less than $100, all your collateral will be liquidated.

Redemption risk

If bnUSD drops below $0.97 and the Stability Fund is empty, traders can redeem bnUSD for borrower collateral. For every bnUSD they redeem, they’ll receive $0.97 of collateral and repay $0.995 of borrower debt. Redemptions are not available through the app — traders must interact with the Balanced Loans contract directly — and are spread across a group of borrowers to limit the impact.

Impermanent loss

Liquidity providers may face losses if one token in a liquidity pool rises in price compared to the other. The value of your funds may become less than if you held them in your wallet, but the loss is not realised unless you withdraw while prices remain unfavourable. Learn more about impermanent loss.

Regulatory risk

Using Balanced may be subject to the laws and regulations in your jurisdiction, including restrictions on digital assets, trading, and financial services. It is your responsibility to understand and comply with all applicable legal requirements before using the Balanced protocol.

Security

While Balanced is designed to resist malicious activity, it may still be vulnerable to hacking, theft, or fraud. Attackers can use malware, denial of service, contract vulnerabilities, consensus exploits, spoofing, or other methods that may result in the loss of your assets or your ability to access or control them.

If a third party gains access to your private keys, seed phrases, or other credentials, they may be able to liquidate, sell, dispose of, or transfer your assets without recourse. If such an event occurs, there may be no remedy, refund, or compensation. Make sure to keep them secure at all times.

External services

The Balanced website and app may link to and integrate services operated by others. Balanced makes no warranties about these third-party platforms, their content, or their security practices, and their use may be subject to separate terms or additional risks.

Due diligence

Before using Balanced, make sure you understand how it works and the risks involved. It can be accessed through various web or mobile interfaces, each of which may impose additional costs or risks. Before using any interface to access Balanced, you should conduct thorough research to make sure you fully understand all associated costs, conditions, and risks.

As-is usage

By accessing Balanced, you agree that you do so entirely at your own risk. The protocol is available for public use “as is,” with no representations or warranties made with respect to the Balanced protocol’s performance, security, or suitability for any particular purpose.

Autonomous operation

The Balanced protocol is operated by smart contracts on multiple blockchains, with ICON as its hub. Its contributors and partners do not own or control the protocol: it’s governed by people who lock up the BALN token.

No individual or entity, including contributors, partners, founders, officers, employees, agents, or representatives, will be liable for any losses, claims, or damages whatsoever associated with the Balanced protocol, including any direct, indirect, incidental, special, exemplary, punitive or consequential damages, or loss of profits, cryptocurrencies, tokens, or anything else of value.