SI Pools combine aspects of traditional impact investing and DeFi protocols. Therefore, the risk profile of SI Pools differs from traditional impact investment products and regular DeFi protocols.

Since the distribution of assets within SI Pools may be volatile between collateralized DeFi lending tokens and undercollateralized real-world assets, the intensity of individual risks may vary.

The main risks associated with SI Pools are as follows

  • Defaults of borrowers (please review Default Risk Mitigation and Insurance)

  • Loss of funds due to flaws in smart contracts

  • Performance of 3rd-party DeFi applications

  • Performance of social impact loans

  • Legal risks of buying, using, trading, and holding cryto

Please consider the taxation of crypto assets in your jurisdiction.

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