Security & Risks

How we protect you and risk involved on Lince usage.

Our mission at Lince is to protect your money and help it grow, which is why asset security is our top priority.

Security

To ensure the safety of your funds, we've developed several mechanisms designed to protect you in any situation.

• Fund Management: All fund management at Lince is executed by our smart contract, an open-source code that acts intelligently based on market data. When you deposit funds, they are transferred to an account linked to the smart contract. Only you and the smart contract can execute any actions on those funds. This way, Lince acts as an intermediary between you and different DeFi protocols that generate your yield.

• Asset ownership: The assets you invest in through Lince remain your property. Lince does not have access to them. Only our smart contract allocates the assets across DeFi protocols according to the investment strategy assigned to your risk profile.

• Strategies: In our strategies, risk is always correlated with potential return. However, all investment strategies go through a minimum security screening before being deployed. This means that the highest risks are associated with the highest potential losses in cases of extreme market volatility — such as with looped or hedge strategies.

• Audits: Lince uses audits from the most reputable firms in the blockchain and financial ecosystems to verify the security of our platform. Our audit reports are available here.

• Regulation: Lince operates within the DeFi market, which is not regulated in most jurisdictions. Lince is a registered company in the United Arab Emirates and complies with local regulations. Additionally, we follow applicable anti-fraud and anti-money laundering (KYC) requirements when necessary. We do not offer any government-backed guarantees on the invested assets. The user must comply with the local tax and legal obligations related to their investments.

• Privacy: Lince only collects essential data, such as your email and risk profile, to offer the best possible experience using our application. This information is private and will not be shared unless legally required. You can learn more in our privacy policy.

• Insurance: Lince is developing a coverage service to allow you to insure your funds against different types of losses. This feature will be available soon.

Risks

Investing always carries risks. At Lince, we work to minimize them, but it's important to understand the key risks involved when using our platform:

• Smart Contract: Bugs or vulnerabilities may exist in smart contracts — both our own and those used by the DeFi protocols we invest in. We actively work to reduce this risk through audits, and only use audited protocols. Still, the risk is never zero and could result in loss of funds.

• Market Exposure: When you select a market exposure level in Lince, you define your exposure to price volatility. This means the value of your portfolio may rise or fall sharply depending on market movements. If you choose a no-exposure strategy, you can avoid this risk and earn attractive yields using only stablecoins.

• Protocol: Lince diversifies your funds across multiple DeFi protocols to generate returns. We carefully screen and select protocols that meet our security standards, but the risk of failure or attack can never be fully eliminated.

• Impermanent Loss: Some Lince strategies involve providing liquidity to DeFi protocols, where your funds are used to facilitate trades between two assets (e.g., ETH and USDC). If these assets fluctuate significantly in price relative to each other, your position may be worth less than simply holding the tokens. If you choose a low-risk strategy, impermanent loss does not apply.

• Liquidity: Lince strategies do not carry liquidity risk, as we only use highly liquid protocols and assets. In some advanced strategies, there may be a lock-up period, but this will always be disclosed before you deposit.

• Loops: These strategies involve borrowing against collateral to reinvest and increase exposure. While they can generate higher APY, they also increase the risk of liquidation and financial loss. If you've selected a low-risk strategy, loops are not included.

• Hedge: These involve derivatives and advanced financial strategies to enhance returns. These instruments can be more sensitive to market swings and may include lock-up periods. Counterparty and execution risk also increases due to their complexity. Hedge do not apply to low-risk strategies.

Other risks may exist and new ones may emerge over time. Lince continuously monitors and evaluates all risks and takes action to minimize them — but we cannot guarantee their complete elimination.