Disclaimer

Alpend is a decentralized protocol suite — consisting of Alpend Market and Alpend-1 — currently operating in beta on the Canton Network. Both protocols are under active development, audits are ongoing, and system parameters may change as the protocols mature. Participation involves financial risk. Read this disclosure in full before supplying, borrowing, or opening a vault.

Alpend Market risks

Collateral price risk is the primary risk for borrowers. If the value of your collateral falls faster than you can repay or add collateral, your position may be liquidated.

Recommendations:

• Maintain a health factor well above 1.0
• Monitor positions when collateral asset prices are moving
• Avoid borrowing near your maximum LTV

Interest rate risk affects both suppliers and borrowers. Supply and borrow APYs on Alpend Market are variable and driven by pool utilization. Borrow costs can rise sharply when utilization exceeds the optimal threshold.

Liquidity risk: Suppliers may be unable to withdraw immediately if pool utilization is near 100%. The protocol's rate model creates strong incentives for repayment and new supply in this scenario, but Alpend does not guarantee instant liquidity for withdrawals.

Alpend-1 · ONE risks

Vault liquidation risk: Vaults are liquidated immediately when LTV reaches the liquidation threshold. There is no grace period and no warning system beyond the app dashboard. A sharp, sudden price drop in CC can trigger liquidation before you have time to act. Maintain LTV well below the maximum and monitor positions actively.

Redemption risk: ONE holders can redeem their ONE for $1 worth of CC directly from the protocol at any time. Redemptions execute against the riskiest open vaults first — meaning if your vault has a low collateral ratio, it may be the target of a redemption. When this happens, your debt is reduced proportionally and you lose the equivalent CC at face value. This is not a penalty, but it is a risk to be aware of.

Fixed rate risk: The interest rate on a vault is fixed at the time of opening and does not change for the life of the position. This eliminates exposure to rate increases but means you cannot benefit from rate decreases without closing and reopening your vault.

ONE peg risk: ONE is designed to stay geared to $1 through arbitrage and protocol mechanics. However, severe or sustained market dysfunction — such as a collapse in CC liquidity — could impair the peg mechanism. ONE is not a guaranteed fixed-value instrument.

Protocol risk

Smart contract risk: Alpend's on-chain contracts are the primary source of protocol risk. Bugs or unexpected interactions could result in loss of funds. Independent security audits are ongoing and have not fully completed.

Governance risk: Protocol parameters are controlled by a multisig with a timelock on normal changes. Emergency changes have no timelock. Key compromise could allow malicious parameter updates.

Oracle risk: Asset prices are sourced from external oracles. An oracle failure or manipulation could lead to incorrect liquidations or undercollateralized positions.

Network risk

Alpend inherits the security model of the Canton Network. Validator downtime, network-level bugs, or protocol forks could affect availability or settlement finality.

Beta status

Alpend is currently in beta. Security audits are ongoing and have not fully completed. System parameters — including LTV ratios, rate models, liquidation thresholds, and caps — may evolve as the protocol develops. During this period, the protocol operates with deposit and borrow caps and restricted liquidators. Exercise discretion and only participate with amounts you are prepared to lose.