Risk
Disclosure

DeFi investing carries real, material risk of loss. Do not invest funds you cannot afford to lose. SquiStack does not guarantee the return of your principal or any specific rate of yield.

Your funds are deployed via Solidity smart contracts on Base L2. Despite independent security audits, all smart contracts may contain undiscovered vulnerabilities. A bug or exploit could result in partial or total loss of funds.

Smart contracts are immutable once deployed. If a critical bug is discovered, we may not be able to recover funds or modify the contract behaviour.

SquiStack relies on third-party DeFi protocols including Aave v3, Aerodrome, Uniswap v3, and Morpho. These protocols are not under SquiStack's control. Protocol governance changes, parameter updates, or protocol failure or exploit could affect yields or principal.

We continuously monitor protocol health and may reallocate funds between protocols to manage risk, but we cannot guarantee protection against protocol-level failures.

All APY figures shown on the platform are based on trailing 30-day performance and are not guaranteed. Actual yields fluctuate based on DeFi market conditions, protocol liquidity, borrower demand, and protocol incentive programs.

Yields can and do fall significantly below historical averages, including to near-zero, during adverse market conditions. SquiStack makes no representation about future yield levels.

You deposit NGN and withdraw NGN. Your savings are held in USD-denominated stablecoins (USDC). If the Nigerian Naira strengthens significantly against the US Dollar between your deposit and withdrawal dates, your NGN payout may be less than your original NGN deposit — even if your USD balance has grown through yield.

Conversely, a weaker naira increases your NGN payout. Currency movements are outside SquiStack's control.

SquiStack holds user funds in USDC (Circle). While USDC is a regulated, USD-backed stablecoin with strong reserve transparency, stablecoins have historically depegged under extreme market stress. A significant depeg could reduce the USD value of your holdings.

Leveraged looping strategies used in SafeLock and CryptoFlex carry liquidation risk. In extreme market scenarios — e.g. a rapid collapse in collateral value or spike in borrowing rates — automated deleveraging may be triggered, potentially resulting in partial loss of principal.

SquiStack maintains conservative collateralisation ratios (minimum 150% LTV) and automated health factor monitoring, but this risk cannot be fully eliminated.

The regulatory landscape for cryptocurrency and DeFi in Nigeria and across Africa is evolving rapidly. Adverse regulatory changes — including restrictions on stablecoins, DeFi protocols, or crypto-to-fiat conversion — could require SquiStack to modify, restrict, or cease operations with limited notice.

SquiStack depends on third-party service providers including Paystack (payments), Privy (wallets), Smile ID (KYC), and Vercel (infrastructure). Failure or outage of any of these providers could disrupt deposits, withdrawals, or access to your funds.

SquiStack is not a bank. Your funds are not covered by the Nigeria Deposit Insurance Corporation (NDIC) or any other deposit protection scheme. In the event of platform failure, there is no government guarantee of your funds.