Balanced is a decentralised peer-to-contract protocol for the creation of synthetic assets and the trading of IRC-20 tokens. The protocol consists of free, publicly available, open-source software, including smart contracts that are deployed on the ICON blockchain.
Use of Balanced involves various risks, including, but not limited to, losses in connection with the deposit of digital assets to the Balanced protocol, and losses due to the fluctuation of prices of tokens in a trading pair or liquidity pool on the Balanced decentralised exchange.
Smart contract risk. Balanced smart contracts have been audited, but there’s always the possibility of a bug or vulnerability that compromises participants' funds. It would not be possible to recover them.
Liquidation risk. If your collateralisation ratio drops below 118%, you’ll lose all your collateral, but you get to keep any borrowed assets.
Rebalancing risk. If you borrow from Balanced, your collateral may be used to keep the value of bnUSD around $1. If bnUSD is too far below $1, collateral is sold and a larger amount of debt repaid. Above $1, debt is increased and used to buy more collateral. Rebalancing can be triggered whenever the price goes over a certain threshold, which is determined by the community and can be adjusted at any time. Learn more about rebalancing.
Impermanent loss. If you supply two assets to a liquidity pool and the value of one (i.e. BALN) rises in comparison to the other (i.e. bnUSD), your supply ratio will move in favour of the bnUSD as people trade within the pool. On paper, your assets will be worth less than if you held them in your wallet, but the loss only becomes permanent if you withdraw liquidity before the price falls again. Learn more about impermanent loss.
While Balanced is designed to be resistant to attack, assets on the protocol may be subject to expropriation, theft, and/or fraud; hackers or other malicious groups or organisations may attempt to interfere with the protocol in various ways, including malware attacks, denial of service attacks, consensus-based attacks, spoofing, and other similar tactics which may result in the loss of your assets, or the loss of your ability to access or control your assets. In such an event, there may be no remedy, and holders of virtual assets are not guaranteed any remedy, refund, or compensation. In particular, note that any third party who gains access to your private login credentials may be able to liquidate, sell, dispose, or transfer your assets.
Pages on the Balanced website may hyperlink to and integrate forums and services run by others. Balanced does not make any warranty about services run by others, or content they may provide. Use of services run by others may be governed by other terms between you and the entity running the other service.
Before using the Balanced protocol, you should perform all necessary due diligence to make sure you understand how Balanced works and the risks associated with your use of the Balanced protocol. Balanced is accessible through a variety of web and mobile interfaces; your use of any such interfaces may subject you to costs imposed in connection therewith, and additional risks relating to the use thereof. Before accessing Balanced through a web or mobile interface, you should perform all necessary due diligence to ensure that you fully understand any costs, conditions, and risks associated with such interfaces.
BY ACCESSING BALANCED, YOU ACKNOWLEDGE AND AGREE THAT YOUR USE OF THE BALANCED PROTOCOL IS ENTIRELY AT YOUR OWN RISK. The Balanced protocol is available for use to the public on an “as-is” basis, and no representations or warranties of any kind are made with respect to the Balanced protocol, its operations and functionality, or its fitness for any specific purpose.
The Balanced protocol is operated by smart contracts deployed on the ICON blockchain. Although early contributors, along with various partners, were involved in the development of the code for Balanced, the early contributors do not own, control, offer, or provide the Balanced protocol for use to the public. The Balanced protocol is managed and administered by holders of Balanced’s BALN governance token. No entity or individual, including, without limitation, the early contributors, their partners, and the respective 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.
Balanced is not insured by the FDIC or any other agency. All risk of loss is borne by the user.