Risk Disclosures
RAX Protocol provides risk intelligence, monitoring, and decision-support tools for DeFi environments.
All use of RAX involves inherent risk. DeFi markets are complex, rapidly evolving, and subject to technical, financial, and systemic uncertainties.
This section outlines key risk considerations and limitations to help users interpret RAX outputs responsibly.
No Elimination of Risk
RAX does not eliminate risk.
Risk scores, simulations, alerts, and allocation suggestions are designed to support informed decision-making, not to guarantee safety or performance.
All capital allocation decisions remain the responsibility of the user.
Model-Based Assessments
RAX outputs are generated using models.
Models rely on assumptions, historical data, and observed patterns. They may not fully capture future conditions or unprecedented events.
As a result:
Outputs may be inaccurate under extreme or novel conditions
Model confidence may vary over time
Risk assessments should be interpreted probabilistically
Market and Liquidity Risk
DeFi markets may experience:
Sudden liquidity withdrawals
Extreme volatility
Cascading liquidations
Market manipulation
Incentive-driven distortions
These events can occur rapidly and may exceed modeled expectations.
Smart Contract and Protocol Risk
RAX does not control external protocols.
Risks include:
Smart contract bugs or exploits
Governance changes
Oracle failures
Integration errors
A low Risk Score does not imply immunity to protocol-level failure.
Infrastructure and Dependency Risk
DeFi systems rely on shared infrastructure, including:
Blockchain networks
Bridges
Oracles
Indexers and data providers
Failures or congestion in underlying infrastructure may impact positions regardless of individual protocol quality.
AI and Automation Limitations
AI-driven analysis may:
Fail to detect certain edge cases
Be affected by incomplete data
Produce outputs with varying confidence
Automation should be combined with human oversight and conservative constraints.
No Financial Advice
RAX does not provide financial, investment, or legal advice.
All information is provided for informational purposes only and should not be interpreted as a recommendation to buy, sell, or allocate capital.
User Responsibility
By using RAX, users acknowledge that:
They are solely responsible for their capital decisions
They understand the risks of DeFi participation
They will apply independent judgment and appropriate safeguards
Summary
RAX is a risk intelligence system, not a risk-free solution.
Its value lies in improving visibility, discipline, and awareness in complex environments, not in eliminating uncertainty.
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