Risk Disclaimer
Last updated: October 1, 2026
Material risks of using BTR and related interfaces. Not legal, financial, or tax advice. Full terms: Terms of Service. Mechanisms and their limits: Security overview and the pages it indexes, in particular the Mark Relayer page (including LVR and OEV) and Known limitations.
By using the protocol or interface, you accept these risks and the possibility of partial or total loss.
1. Interface and protocol
The website and apps are a convenience interface. BTR smart contracts run on public blockchains and any address can call them, within the owner-set gates in §7. We do not custody your assets or private keys, are not your broker or fiduciary, and cannot reverse, refund, or recover on-chain transactions.
You may interact with contracts directly. Interface downtime does not pause the contracts. Always verify domains, chain IDs, and contract addresses from official sources (deployed instances).
Pools are deployed by the protocol owner, but a pool can be created for and then administered by a third party. Only pools the factory flags as official are curated by us; do not assume a pool you encounter is operated, vetted, or backed by us.
2. Smart contracts and software
Contracts and keepers stay under continuous internal security review, with the Internal Audit 2026-09 published and further internal campaigns run perpetually. No review eliminates bugs, economic exploits, or unexpected behavior.
Upgrades and parameter changes (where applicable) may introduce new risk even when timelocked (Admin).
3. Market and execution
Digital assets are volatile. Swaps and liquidity provision can lose principal. Quotes can move between simulation and confirmation. Gas is non-refundable on failed transactions.
MEV: on chains with a public mempool, transactions are visible before inclusion, and searchers may frontrun, sandwich, or backrun your trades (MEV). Exposure depends on the chain and on the RPC endpoint your wallet connects through. An MEV-protected RPC is advised: MEV protection.
Slippage and depth: large trades face price impact. Set your own tolerances.
4. Liquidity provider risks
Every mint and exit settles at one pool rate : the mark value of the pool’s backed reserves over the mark value of every LP claim (Inventory Management §5).
- A loss on any leg lowers and is paid pro rata by every LP in the pool, stable-leg LPs included. Such losses include swaps that pay less than the adverse selection they carry (LVR), a price move against inventory the pool holds, and tokens the pool books but no longer holds (issuer clawback, negative rebase). At launch only each leg’s deposit cap bounds that sharing (Inventory Management §5.3).
- A loss at a leg’s yield venue is written down against that leg’s LPs only (Hooks).
- A same-asset withdrawal pays at most the leg’s coverage in kind (haircut). The rest of the claim is paid in another token by a cross-asset withdrawal. That withdrawal is closed while either leg has liability swaps disabled or any feed in the pool is unusable. A halted leg cannot be exited.
- There is no insurance fund and no protocol backstop. Claims can go to zero.
Fees are dynamic (volatility, confidence, staleness, inventory). Concentration and liquidity profiles affect both execution quality and how much value informed flow can extract near mid (economic bounds).
A short deposit-to-withdraw cooldown exists to limit JIT liquidity attacks. Protocol-level flow limits: Flow Guards.
5. Oracle and keeper risks
BTR pools quote off a keeper-pushed external mark, not pool reserves or an internal TWAP. Mechanisms below are specified in Mark Relayer.
| Risk | What it means |
|---|---|
| Signer trust | Marks require a k-of-n quorum of independently custodied signers. A compromised quorum can push a bad mark, bounded by deviation bands, confidence halts, and Flow Guards. Signers are revocable by the owner or a Guardian; revoking below threshold halts pushing rather than loosening it. |
| Push latency (LVR) | Between a true price move and an on-chain push, informed traders can trade against a frozen mark. |
| OEV | On public-mempool chains, searchers may order swaps around the push itself (OEV). |
| Keeper outage | Missed pushes widen spreads after grace, then halt quoting past TTL. |
| Displayed metrics | Marks, σ, APRs, and charts can be delayed or wrong. They are not promises. The interface flags stale or unavailable prices, but an outage can still go unnoticed. Report one to tech@btr.markets or on Telegram. |
Optional third-party reference feeds (if a pool opts in for depeg gating) add that feed’s failure modes.
6. Multi-chain deployments
If BTR deploys on additional chains in future, liquidity and prices may differ by chain. Cross-chain transfer of assets carries bridge risk, which is borne by whichever bridge you choose and is outside BTR’s control.
7. Operators
Pool creation, asset listing, parameters and upgrades sit with the protocol owner (Access Control). The owner can restrict deposits on an asset to an allowlist. The owner, a guardian or a pool’s admin can halt an asset, which stops every flow on it, withdrawals included. Upgrades, listings and risk-loosening changes wait on a timelock; halts and risk-reducing changes take effect at once. On Arc testnet the owner is a single key; on Monad it is a 3-of-4 Safe. Centralization and operator-compromise risk remain. Keepers we or delegates run can fail, be delayed, or be compromised within their permissions.
8. Compliance and tax
You must follow the laws that apply to you, including sanctions and tax. We do not provide compliance advice. Geographic restrictions are in the Terms of Service.
9. No guarantees
Services are provided as is and as available. No warranty of uptime, price, yield, or fitness for purpose. Past or simulated performance does not predict future results.
10. Network appendix
Live chains and their status: deployed instances. On a mainnet, pools hold real assets and losses are permanent; use only funds you can afford to lose. On a testnet, pool assets other than the chain’s own tokens are BTR-deployed mocks minted by the on-app faucet; they have no monetary value and may be reset or wiped. Verify contracts before approving or depositing.