Trading losses: Trading results are not guaranteed. In which case, FITERs always ensure that the Fund Pools remain at a healthy level by pledging a starting capital and by adjusting the APR. This mechanism ensures that the total claimable rewards are always backed, at least 1:1 by a larger Profit Pool size.
Losing liquid tokens: Liquid tokens (ftToken) are transferable and tradeable. If users lose their liquid tokens in a trade, they also lose access to their original deposited assets.
Liquid token price risk: Liquid tokens may be depegged from their original deposited assets, where liquid tokens traded lower than the original deposited assets. This may be due to the extensive use of liquid tokens, resulting in an elastic supply.
The FITE team is driven to mitigate the above risks and eliminate them entirely to the extent possible.