Decentralised finance protocols on blockchain infrastructure have risks such as smart contract risks, protocol failures, hacks from malicious attackers, or other similar risks.
When you transfer funds into Earn, most of the funds are deployed into DeFi protocols and thus locked in smart contracts. To reduce security risks, we carefully select protocols (e.g. Uniswap) based on criteria such as having extensive technical audits and a strong track record. Undeployed funds are also held in offline hardware wallets and stored in a secure, access-restricted location to reduce risks of funds being compromised.
We also minimize market fluctuation risks by transacting in stablecoins instead of price-volatile cryptocurrencies such as Bitcoin. Stablecoins are digital assets pegged to fiat currencies such as the Singapore dollar or US dollar, and this peg helps to maintain price stability. Earn does not transact in any cryptocurrencies or digital assets outside of stablecoins.
Even with the above, you should always ensure that you understand these and any other risks associated with the Earn product, and assess whether such risks are suitable for your circumstances. You are advised to read the Earn Terms of Service carefully. Earn is not regulated, licensed or endorsed by the Monetary Authority of Singapore, and is not a savings or deposit account.