Risk Disclosure & Disclaimers
This Risk Disclosure is intended to give a clear, practical overview of the risks associated with using the Orchid Credit interface at https://orchid.credit (the "Interface"). It is not investment, financial, legal, or tax advice.
Orchid is a non-custodial, on-chain protocol. You remain in full control of your assets at all times. That control also comes with responsibility, so it's important to understand how things work before participating.
Understanding Digital Assets
Digital assets, including stablecoins, yield tokens, and other on-chain instruments, operate on public blockchains rather than traditional financial rails.
They are:
- Not issued or guaranteed by governments.
- Not insured by banks or deposit schemes.
- Subject to market dynamics rather than fixed guarantees.
That said, millions of users interact with blockchain systems daily. Orchid is designed to provide transparent, on-chain financial infrastructure while allowing users to make their own informed decisions.
Price Movement and Market Conditions
Asset prices on public markets can change over time due to supply, demand, liquidity, and broader market conditions.
While many assets used in lending markets are designed to be stable or yield-bearing, no system is entirely free from market movement. Users should be comfortable with the possibility of price changes when supplying or borrowing assets.
Liquidity Considerations
Lending markets depend on available liquidity. In normal conditions, assets can be supplied, borrowed, and withdrawn smoothly. In stressed or unusual market environments, liquidity may tighten, which can affect execution speed or pricing. Orchid surfaces market data transparently so users can make informed choices.
Smart Contracts and On-Chain Execution
Orchid operates through smart contracts deployed on public blockchains. These contracts execute exactly as written, are transparent and verifiable on-chain, and do not rely on intermediaries or custodians.
As with any software, smart contracts may carry technical risk. Users interact directly with these contracts and should review protocol mechanics before use.
Non-Custodial by Design
Orchid does not hold user funds or private keys. You control your wallet, approve every transaction, and decide how assets are used. This model removes custodial risk but means users are responsible for wallet security, transaction approvals, and asset management.
Borrowing and Liquidation Risk
Borrowing allows users to unlock capital efficiency, but it comes with responsibility. If collateral values fall or borrowed positions grow too large relative to collateral, positions may be liquidated to keep the system healthy. Orchid provides clear health metrics so users can manage positions proactively.
Transactions Are Final
Blockchain transactions are generally irreversible. Always verify addresses, review transaction details, and confirm approvals carefully. Once confirmed on-chain, transactions cannot be undone.
No Investment Advice
Information provided through the Interface is for informational purposes only. Orchid does not recommend strategies, guarantee outcomes, or assess suitability. Each user decides how and whether to participate based on their own goals and circumstances.
Regulatory Landscape
Digital asset regulation continues to evolve across jurisdictions. While Orchid is designed as open, permissionless infrastructure, users are responsible for understanding and complying with local laws that apply to them.