Risk Disclosure

Enclave is dedicated to providing a secure and efficient API for transacting across chains. However, as with any crypto application, there are inherent risks associated with using Enclave. It is important for chains, dapps and users to understand these risks before participating.

Network Congestion Risk

High transaction volumes on blockchain networks can lead to congestion, resulting in delayed transactions and higher fees. This can affect the efficiency and cost-effectiveness of Enclave's operations, including deposits, withdrawals, and rebalancing activities.

51% Attack

A 51% attack occurs when a single entity or group gains control of more than 50% of the blockchain network's hashing power or stake. This control can be used to manipulate the blockchain, including reversing transactions, double-spending, and preventing new transactions from being confirmed.

• Impact on Enclave: If a 51% attack occurs on any of the networks supported by Enclave Money, it could lead to disruptions in operations, loss of funds, or incorrect updates to the state of the fund pool reserves and user balances.

Chain Rollback

A chain rollback is an event where a blockchain network is reverted to a previous state, effectively undoing transactions that occurred after the rollback point. This can happen due to software bugs, consensus issues, or malicious attacks.

Mitigation Measures

Enclave Money takes several measures to mitigate these risks, including:

• Security Audits: Regular and thorough security audits of Enclave's smart contracts and protocols.

• Monitoring: Continuous monitoring of network conditions and security developments to respond quickly to potential threats.

• Community and Governance: Engaging with the community and participating in governance processes of integrated protocols to stay informed and influence security practices.