Disclaimer & Terms of Use

There exist some fundamental risks the end-user should be made aware of before interacting with the Yamfore protocol. The Yamfore protocol is an open-source collection of smart contracts operating independently on a blockchain. The distributed nature of the storage and operation of the protocol means no single individual, organisation, governing body, owns or controls the protocol. Instead, the holders of the $CBLP token dictate the development / direction of the protocol.

The Yamfore protocol is provided on a “USE AT OWN RISK” provision without any associated warranties or guarantees provided. No developer or entity involved in the creation or promotion of Yamfore is responsible for any damages / loss of funds resulting from the usage of the protocol. The Yamfore protocol will go through extensive internal testing, as well as external auditing before launching, however the risk of an undiscovered bug / exploit residing in the protocols smart contracts always remains a possibility. Depending on the severity of the bug / exploit, this could lead to partial, or complete loss of deposited funds.

As a condition of your use of the Yamfore website or any third party website connecting to it (collectively the “Site”), you agree that you: (i) are at least 18 years of age; (ii) are not barred from using the Protocol, the Site, or any connected services under any law applicable to you; (iii) will not interfere with the intended operation of the Protocol or Site, including by hacking, submitting a virus, fraudulent information or tokens, or attempting to overload, “flood,” or “crash” the Protocol or Site; and (iv) you are, and your use of the Protocol is and will be, in compliance at all times with all laws, rules, regulations or orders applicable to you.

THE PROTOCOL, THE SITE AND ALL INFORMATION CONTAINED ON THE SITE, ARE MADE ACCESSIBLE OR AVAILABLE ON AN “AS IS” AND “AS AVAILABLE” BASIS. YOU EXPRESSLY AGREE THAT USE OF THE SITE OR THE PROTOCOL IS AT YOUR SOLE RISK. TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW, NONE OF YAMFORE, ITS SUBSIDIARIES, AFFILIATES, AND PARTNERS, OR ANY DEVELOPER, EMPLOYEE, AGENT OR LICENSOR ASSOCIATED WITH ANY OF THEM, WARRANT THAT USE OF THE SITE OR PROTOCOL WILL BE UNINTERRUPTED, FULLY SECURE, VIRUS- OR ERROR-FREE, NOR DO THEY MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SITE OR THE PROTOCOL. EACH OF THE FOREGOING HEREBY DISCLAIMS ANY AND ALL REPRESENTATIONS, WARRANTIES AND CONDITIONS, WHETHER EXPRESS OR IMPLIED, AS TO THE PROTOCOL, THE SITE OR ANY INFORMATION CONTAINED ON THE SITE, INCLUDING, BUT NOT LIMITED TO, THOSE OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, SUITABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AS WELL AS WARRANTIES IMPLIED FROM A COURSE OF PERFORMANCE OR COURSE OF DEALING.

IN NO EVENT SHALL YAMFORE, ITS SUBSIDIARIES, AFFILIATES, AND PARTNERS, OR ANY DEVELOPER, EMPLOYEE, AGENT OR LICENSOR ASSOCIATED WITH ANY OF THEM, BE LIABLE FOR ANY DAMAGES ARISING OUT OF OR RELATED TO: (I) YOUR USE OF OR INABILITY TO USE THE PROTOCOL, OR THE SITE, OR INFORMATION CONTAINED IN THE SITE, (II) YOUR INTERACTIONS WITH OTHER USERS, OR (III) THESE USE TERMS; INCLUDING BUT NOT LIMITED TO (A) DIRECT, INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND, AND (B) LOSS OF REVENUES, PROFITS, GOODWILL, CRYPTOCURRENCIES, TOKENS OR ANYTHING ELSE OF VALUE.

YOU AGREE THAT ANY CAUSE OF ACTION ARISING OUT OF OR RELATED TO THE SITE MUST COMMENCE WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUES, OR THE CAUSE OF ACTION IS PERMANENTLY BARRED.

Another risk pertains to the financial risk a user takes when initiating a loan through the protocol. This risk comes in the form of overexposure to the native utility & governance token of the protocol, $CBLP. The $CBLP token is inherently riskier than ADA due to its relatively limited utility, and significantly smaller market capitalization. Ideally any user taking out a crypto-backed loan against their ADA would prefer the majority if not all of their deposited collateral to remain denominated in ADA.

Although the borrowers $CBLP tokens are ALWAYS returned in full on closure of their loan position. The market value of a borrowers deposited $CBLP tokens may vary greatly from the start of their loan term to the end of it. The Yamfore protocol is only concerned with ensuring the value of the borrowers deposited ADA collateral is of sufficient value before allowing a borrower to close their loan position and redeem their $CBLP tokens. It is entirely possible for a borrower to close their loan position and be in profit on their deposited ADA collateral, whilst down / neutral in price on their deposited $CBLP collateral. This is a very similar concept / effect as impermanent loss.

If a user deems the protocol’s ADA/CBLP collateral ratio requirement too high, and wishes to retain the majority / all of their deposited collateral in ADA. The user might instead choose to use a more traditional crypto-backed lending platform / protocol. The user of course forgoes all the advantages a community backed lending protocol offers, such as no margin calls, no ongoing interest repayments, indefinite loan terms etc.

On initiation of a loan through Yamfore, a Non-fungible token representing ownership of the loan position is minted and sent to the borrower's wallet. This NFT deed is required to redeem the deposited collateral assets secured in the protocol. A borrower misplacing / losing their NFT deed, equates to them forfeiting their deposited collateral assets. The borrower should always ideally store their NFT deed in a secure long term cold storage solution such as a hardware wallet or air-gapped device.