Proto is based on a decentralized protocol and governed by a decentralized organization. Still, it is essential to note that, like any project, it is not entirely devoid of risk. Below, in no particular order, are some of the issues that should be considered before joining our community.

 

Deteriorating cryptocurrency market conditions ⎯ The broader cryptocurrency market is characterized by volatility. It is unrealistic to think that Proto will be immune to forces affecting the overall market.

 

The current traditional macroeconomic environment is favorable to the growth of trustless assets, but there is no assurance that that will continue. Likewise, there is no assurance that the cryptocurrency market will maintain its relatively uncorrelated relationship with traditional markets and the macroeconomic risks that they entail.

 

Counterparty Risk ⎯ Proto has limited ability to influence or assure the ongoing performance of our partners and vendors. However, we carefully vet all of our partners, focusing on financials, market position, track record, and management strength.

 

Contract bugs ⎯ All of Proto’s current code is audited by Hacken.io, a blockchain cyber security firm. In addition, resources are set aside to perform periodic audits on both our operating code and funding levels. Still, no audit is perfect and cannot totally eliminate the possibility of an exploitable flaw.

 

Malicious actors ⎯ Any popular asset can attract malicious actors, and Proto is no exception. However, the highly decentralized nature of our architecture mitigates many of the attack vectors associated with centralized counterparties. In addition, our DAO-based governance system minimizes the possibility of damage from within as the structure ensures that many incentivized eyes will be observing the operation of the project firsthand.

 

User error - the trustless attributes built into our dApps are some of their most essential features but at the same time demand extra care from their users. For example, our ProtoLock and ProtoStake dApps are non-custodial user interfaces that create transactions directly on the blockchain. As such, Proto cannot override any erroneous user entries. If a user mistakenly locks or stakes an asset, Proto cannot reverse or modify those transactions or the resulting unlock dates or vesting schedules. Because of this, users are urged to use extreme caution when securing their assets on the blockchain.

 

DISCLOSURE STATEMENT

 

THE ENTIRE CONTENTS OF THIS WEBSITE, INCLUDING ANY ATTACHMENTS OR EXTERNAL REFERENCES, ARE PERSONAL OPINIONS AND ARE INTENDED TO BE USED FOR ILLUSTRATIVE AND EDUCATIONAL PURPOSES ONLY. ANY REFERENCES IN THIS WEBSITE, INCLUDING ANY ATTACHMENTS OR EXTERNAL REFERENCES REGARDING ANY MATTER, DOCUMENT(S), OR COMMITMENT(S), ARE STRICTLY FOR EDUCATIONAL PURPOSES. NOTHING HEREIN SHALL BE CONSTRUED AS PROFESSIONAL ADVICE OF ANY KIND. ALL PARTIES SHALL RELY SOLELY ON THEIR DILIGENCE, EVALUATION, AND THE ADVICE OF THEIR LEGAL COUNSEL FOR ALL CONSIDERATIONS AND DECISION-MAKING.

TOP