General risks

Bumper is at its core a risk market, allowing users seeking protection to shift risk to other users seeking a yield.

Whilst Bumper’s architecture is designed to operate differently from other risk management tools (such as options platforms), it should be noted that there is no guarantee that using Bumper will return a profit for a specific user, as risk markets are driven by market forces.

Indicative premia and yields are not a guarantee of costs of protection, or returns.

Although rare, there are liquidation risks for Takers (users buying protection). Similarly, there are also liquidation risks for Makers (users depositing liquidity to earn yields). Furthermore, issues such as stablecoin de-pegging, failure by oracles or EVM chains, hacks and attacks, protocol bugs, lack of liquidity and unforeseen behaviours from a highly complex protocol may also be factors that may increase risks and lead to losses.