Can I trust FlashFlow?

This is indeed a crucial matter that concerns all service users.

We would like to decompose the answer into several components. We hope that after reading this article, you will gain confidence in our protocol and realize the risks you are taking when using our service:

Risks of third-party services

Our service utilizes several third-party protocols, such as AAVE and Uniswap If the protocol used in your transaction is hacked or if its users' funds are stolen, you will suffer directly from it.

Position liquidation risk

If you use leverage in your positions, you carry the risk of liquidation. This situation may arise if you open a long position, and the coin starts to decrease in price rapidly.

Incorrect price risk

This risk partly correlates with the risks of third-party services, but there is a slight difference. We obtain quotes for financial calculations from decentralized exchange services such as 1inch and Uniswap. If they make an error in their calculations, it will affect the final opening or closing price.

Coin depreciation risk

Coins can lose their value relative to each other. Unfortunately, this risk cannot be eliminated because the flip side of this risk is profit from trading.

Blockchain risk

There is a possibility that blockchain networks may stop functioning. This risk cannot be called high, but you should still be aware of its existence.

Slippage risk

Transactions are opened and closed in a single transaction. On average, this takes a few tens of seconds. But even in such a short period of time, the price can change. Ultimately, this can lead to a change in the opening or closing price.

How can these risks be mitigated?

Unfortunately, not all risks can be eliminated. For example, the risk of price fluctuations cannot be excluded because this is the market. Similarly, with the blockchain risk, this risk is beyond management, and no one can eliminate it.

The slippage risk is solved by adjusting the slippage parameter when opening or closing a transaction. The user can control this risk.

The third-party protocols we use undergo audits by companies specializing in security. You can learn more about their security policy directly on their websites.