Risk

The risks outlined below are non-exhaustive. Please ensure you fully understand the product and its associated risks before using Amplify.

Liquidation Risk

Leveraged borrowing through Amplify carries liquidation risk if a user’s margin ratio falls below the platform's maintenance threshold.

In JLP Amplify, liquidation can occur if JLP depreciates against USD, causing the position to exceed its liquidation threshold.

Rates fluctuation

The borrowing APR and Collateral Asset’s yield can fluctuate due to various factors. At times, the borrowing APR may exceed the Collateral Asset’s yield, resulting in a loss instead of a gain.

Oracle Risk

Amplify depends on external oracles for pricing data. If an oracle malfunctions, is manipulated, or provides incorrect data, users may face unexpected liquidations or losses.

Liquidity Risk

Amplify relies on liquid markets for conversions between Collateral Asset and Borrowing Asset. In extreme liquidity constraints, liquidations may be delayed, and users may face slippage when opening or unwinding positions.

Smart Contract & UI Risk

Like any DeFi product, Amplify is subject to smart contract vulnerabilities, which could result in unexpected behavior or loss of funds.