Risks & Security

• You must return exactly the same quantity of the same token. If its price rises, buying it back costs more SOL — your loss is not capped by the rental fee.
• If the price rises until your collateral ratio falls below the liquidation ratio, anyone can start a liquidation auction and receive your collateral at a discount of up to the auction's maximum bonus.
• If you do not repay before the deadline, the position can be liquidated. If nobody liquidates it, after the auction and grace period (at least 13 hours) the lender claims your collateral up to the tokens' value plus the maximum auction bonus — and during a multi-day oracle outage, all of it.
• The rental fee is paid up-front and is not refunded on early repayment.
• Oracle prices (Pyth) can lag or briefly diverge from the market; liquidation decisions use them.

• Collateral does not guarantee that you get your tokens back. If the price spikes faster than liquidation can happen, or nobody can buy the tokens back, you receive the borrower's SOL collateral instead — possibly worth less than your tokens.
• Borrowers may sell the tokens they rent, which can push the market price down while the loan is open.
• Liquidation depends on third-party liquidators and on fresh oracle prices; during extreme volatility or liquidity shortages it can be late or fail.
• Tokens that are rented out are not in your wallet until the position is repaid or settled.

Collateral does not guarantee full token recovery, especially during extreme volatility or liquidity shortages.

• You must return exactly the same quantity of the same token before the due date plus the lender's grace period. If you do not, the lender can claim ALL of your collateral — regardless of the token's price, even if the tokens are worth far less than the collateral.
• There is no price-based liquidation. If the price rises, buying the tokens back costs more SOL; your loss is not capped by the rental fee unless you give up the collateral.
• Locking more than the required collateral does not reduce any risk: on default all of it goes to the lender; on repayment all of it is returned.
• After the due date anyone can start the default timer. You can still repay until someone claims the collateral, which is possible as soon as the grace period ends.
• The token has no oracle and no admin review. Mints with a freeze authority or dangerous Token-2022 extensions are rejected on-chain, but the token itself can be illiquid, manipulated or become hard to buy back.
• The rental fee is paid up-front and is not refunded on early repayment.

• Your only protection is the SOL collateral you set. If the token's price rises above the collateral and the borrower does not return the tokens, you keep only the collateral — not the tokens or their value.
• Nothing re-prices the collateral during a loan: no oracle, no liquidation auction. The only remedy is claiming all of the collateral after the due date plus your grace period.
• Market values shown in the app are DEX reference prices (Jupiter) for display only; the program never reads them, and thin pools can be manipulated.
• Borrowers may sell the tokens they rent, which can push the market price down while the loan is open.
• Tokens that are rented out are not in your wallet until the position is repaid or settled. Starting the default timer, claiming the collateral and settlement are permissionless transactions somebody must send — you can send them yourself.

If the coin's price rises above your collateral and the borrower does not return it, you keep only the collateral.

• You trade at a fixed price you or the seller chose. Market prices elsewhere can differ before or after your trade.
• OTC trades do not touch AMM pools, but buyers may sell afterwards, which can still move the market price.
• Unsold tokens stay in escrow until sold, cancelled by the seller, or returned after expiry.

• The RENT lending program has NOT been independently audited. An undiscovered bug could cause loss of escrowed tokens or collateral that no market move would explain.
• The program upgrade authority and the protocol admin can change future risk parameters and pause new activity; they cannot move escrowed assets.
• Accepting these risks does not permit us to leave known security issues unresolved. Known issues and their status are listed on the Risks page.