⚠️Risks & Mitigations

Mimicry is a complex codebase and certain risks exist within the system.

There are a number of risks in the current architecture, as Mimicry is still an experimental system and complex systems require both empirical observations and theoretical analysis. Empirical observation and theoretical analysis ensure the mechanism design aligns incentives for all players.

We have attempted to describe an exhaustive list of risks related to the use of our protocol, along with an equally exhaustive list of mitigation strategies each each.

Price Manipulation Risk

Data Feed Downtime Risk

Centralization Risk

Smart Contract Risks

Macroeconomic Risk

Leverage Risk

Skew-Change Risk

Liquidation Risk

Arbitrage Risk

Market Abandonment Risk

Balancer Shortage Risk