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Using blockchain services and holding tokens involves risk. Ti reduces these risks with the mechanisms described in the preceding chapters, but it cannot eliminate them. Please read the following before using Ti Protocol or acquiring TIP.

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1. Smart contract risk

Smart contracts can contain errors even after review and testing, and if an error is exploited, assets can be lost. Ti reduces this risk by using widely tested OpenZeppelin components, publicly verifying its source code, and placing multisig and time delays on administrative functions. The TIP token cannot be upgraded, so an error that needs a fix cannot be corrected at the same address. The vesting contracts can be moved to a new version after approval and a waiting period, but that process also takes time.

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2. External protocol risk

Ti’s swaps and transfers run on DEXs such as Uniswap, Curve, PancakeSwap and DragonSwap, and on cross-chain protocols such as Circle CCTP and LayerZero. Errors, outages, governance changes and validator problems in these protocols are beyond Ti’s control, and they can lead to failed swaps, delayed transfers or loss of assets. CCTP depends on Circle’s attestation service, and USDT0 depends on its LayerZero verifier configuration.

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3. Stablecoin risk

The value of a stablecoin depends on its issuer’s reserves and redemption structure, and its peg to the reference currency can break, temporarily or for a long period. Crypto-collateralized and synthetic stablecoins carry additional risks from price swings in their collateral and from their hedging structures. Issuers can freeze tokens at specific addresses and, depending on regulation, may restrict redemption in certain regions. Ti does not guarantee the value of any supported stablecoin.

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4. Market and liquidity risk

Prices can move between the time a quote is received and the time the trade executes. If the move exceeds the slippage tolerance, the trade can fail with only the network fee spent. Price impact grows in shallow pools and for large swaps. In a cross-chain swap, the conditions for the destination swap may no longer hold after the source chain transaction completes.

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5. AI risk

Ti AI’s answers can be wrong or incomplete, and the same question can get different answers. If external data is delayed or wrong, the answers will be too. Check the values, source and timestamp on each card, and check the details again in your wallet before you sign. AI answers are not investment advice and do not guarantee returns. The delegated execution feature planned for the future is designed to work only within the scope the user sets, but the wider the scope, the greater the risk.

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6. Operational and infrastructure risk

Outages in the quote API, relayers, data services or the website can stop or slow the service. Congestion, halts or fee spikes on the blockchain networks themselves also affect transactions. If the service stops, user assets remain in the users’ own wallets.

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7. Key and account risk

If users lose their wallet’s private key or seed phrase, or have it stolen, they can lose their assets, and Ti cannot reverse this. If a Governance Safe signer’s key leaks, administrative functions could be scheduled. Multisig and time delays are designed to prevent this, but if the keys of two or more signers leak at the same time and the response is slow, losses can occur.

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8. Token risk

The price of TIP can rise or fall, and its value can drop sharply. The listing schedule and exchanges have not been confirmed, and even after listing, trading volume may be insufficient. Under the release schedule, circulating supply grows over 60 months, and released tokens entering the market can affect the price. Uses such as holder benefits, governance, and buyback and burn have not been introduced yet. They may not be introduced as planned, or their details may change. The compliance freeze is narrow in scope, but it can temporarily block sending from a specific address.

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9. Regulatory and tax risk

Laws on digital assets and stablecoins differ by country and keep changing. New regulation could restrict or suspend some Ti features or TIP trading in certain regions. Acquiring, holding and disposing of tokens, and swapping stablecoins, may be subject to tax, and users are responsible for assessing and reporting it.

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10. User error

Blockchain transactions cannot be reversed once executed. Assets sent to the wrong address or chain may be unrecoverable. Check the official addresses and official channels so that you are not deceived by fake websites, fake tokens or contacts impersonating Ti. Use only amounts you can afford to lose, and we recommend starting with a small amount.