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Risks
Though MFIL protocol can provide better services to participants in Filecoin ecosystem, users of MFIL still need to know potential risks to better protect their interest and make decision. Those risks may including but not limited to:
Risks Related to Smart Contract
As FVM is still on its early stage of launch, the entire smart contract is yet to be perfect. Therefore, its stableness and safety is still needed to be tested by time. Although smart contract on MFIL has passed code auditing and a serious technology means has been taken to prevent foreseeable risks. It is still not be able to eliminate all potential risks related to FVM or smart contract on it. External hacker attack may also leads to unpredictable problems and lead to asset lost.
Risks related to Filecoin Network
FVM and MFIL project are all build on Filecoin network. We cannot predict the future development of Filecoin. It seems by far, the Filecoin is still one of the most important infrastructure for distribution storage and Web3. However, if the Filecoin network cannot develop well or have material change in the future, MFIL will be directly impacted and may lead to asset loss or other risks.
Risks related to SP Node Operation
Although, MFIL will evaluate all SPs during the onboarding process and monitor their node operation. However, the hardware and data center are still operated and maintained by SPs. As all SPs are not employed nor subjected to MFIL, therefore, MFIL cannot control SPs action or to eliminate their operation risks. In extreme cases like technical failure, hardware or data center destruction, SP node may crushed. MFIL will try to recover date remotely or take other actions trying to decrease the potential loses and sustain node operation , but it is impossible for MFIL to predict those risks in advance thus to avoid such risks or losses.
Risks related to DAO：
Though DAO can represent interest of more stakeholders rather than few shareholders in traditional company. However, DAO operated fully decentralized and volunteered by its community participants. In addition, participant of the DAO may from different countries and cultures,which have different language, time zone and traditions. Therefore, DAO may be less efficient due to its loose corporation mode and may lead to potential risks in communication, governance and other areas.
Risks related to Market and Industry：
The entire blockchain industry and Web 3 market is still in its early stage of development. None can forecast the future of the market or the industry. Major changes may existed in this market and asset related will also be influenced to fluctuate dramatically or even lead to impermanent loss. Every users of MFIL should evaluate their risk tolerance and risk types to choose whether to use MFIL or join this market depend on the evaluation result. Users also need to have sufficient knowledge regard this market and have capability to take any potential risks or losses.
Risks related to Regulation and Government：
Normally, regulation will be late than the development of the market. For blockchain, crypto asset, and Web3, the global regulation framework is far away from perfect. No one knows what regulation or policy may be released which will profoundly influence the entire market. Also, DAO is a concept or organization type which is not in current legal system yet. Current policy may change and new policy may be publish which materially impact the asset price and lead to unknown risks.
Last modified 7mo ago