Risk model

Lending on Atomic carries a different risk profile compared to traditional DeFi lending protocols.

Smart contract risk All capital in the lending pool is managed by smart contracts. While the protocol has maintained 99%+ uptime since 2022 with zero critical security incidents, and V3 undergoes a full audit before launch, smart contract risk cannot be fully eliminated.

Liquidity risk In periods of extremely high utilisation, a lender may need to wait until active positions are closed before withdrawing their full balance. There is no lock-up period by design, but instant withdrawal depends on available idle capital in the pool.