Risk Disclosure

1. General Warning

The unflat App, when launched, will provide an interface to interact with third-party DeFi protocols. DeFi involves substantial risks and is not suitable for everyone.

unflat S.r.l. is not a bank, investment firm, or regulated financial institution. Your assets are not protected by any deposit guarantee scheme.

2. Key Risks

Smart Contract Risks

• Code vulnerabilities may result in loss of assets. While Morpho Protocol has undergone 25+ independent security audits by firms including Trail of Bits and OpenZeppelin, no audit can guarantee the absence of all bugs.
• DeFi protocols have been subject to exploits and hacks. According to DefiLlama, over $8B has been lost to DeFi exploits since 2020. Morpho has had zero exploits to date, but past performance does not guarantee future security.

Market Risks

• Yields (e.g., "4–7% APY") are illustrative only and NOT guaranteed. Historical yields on Morpho USDC lending have ranged from 4.2% to 7.1% over the past 12 months (DefiLlama), but rates can change daily based on market demand.
• Actual returns may be zero or negative
• Stablecoins may lose their peg. USDC briefly depegged to $0.87 in March 2023 during the Silicon Valley Bank crisis before recovering within days. USDC reserves are now attested monthly by Grant Thornton LLP and held primarily in short-term US Treasuries.

Technical Risks

• Blockchain transactions are irreversible
• Loss of wallet credentials = permanent loss of assets

Regulatory Risks

• DeFi regulation is evolving and may change. The EU's Markets in Crypto-Assets Regulation (MiCA) came into effect in 2024, and further DeFi-specific regulation from ESMA and national authorities like the Bank of Italy may affect service availability or terms.

3. No Protection

Your assets are NOT protected by any deposit guarantee scheme (such as the Italian FITD or the EU Deposit Guarantee Scheme), investor compensation scheme, insurance, or guarantee from unflat. Unlike bank deposits covered up to €100,000 under EU directive 2014/49/EU, DeFi deposits carry no such protection.

4. Suitability

DeFi may be suitable only if you understand the risks, can afford to lose your entire investment, and have conducted your own research.

Never invest more than you can afford to lose.

5. No Advice

Nothing on our Website constitutes financial, investment, legal, or tax advice. Consult qualified professionals before making any decisions.

6. Contact

unflat S.r.l.
Email: info@unflat.eu