Risk & Security
Abstract
Megaton Finance (https://megaton.fi) is a decentralized application (DApp) based on the TON blockchain. Megaton Finance is designed to provide users with an easy-to-use interface that integrates directly with the TON blockchain wallet, to swap various digital assets and to provide liquidity.
For reliable network/service while using Megaton Finance, please read the following guideline carefully.
We recommend you access the service with only one instance/tab.
The service may be limited if you use multiple instances/tabs for a prolonged period of time, use a public/shared IP access point, and/or there is an excessive amount of connection requests.
If you are having difficulty with connectivity for whatever reason, please close all instances/tabs and access the service after at least 1 hour before re-connecting.
This guideline contains important information regarding the usage of Megaton Finance, which users should familiarize themselves with. Please read this article carefully. Using Megaton Finance constitutes acceptance of terms and risks, and assumes that the user has read this guideline in full.
Asset deposit/withdrawal
Users should be aware of the following in depositing and withdrawing assets.
To request a transaction, the user must have a TON wallet to hold TON-based assets, along with a minimum amount of TON to use for transaction fees.
As such, An asset that is not a TON-compatible Token (WTON) and based on other blockchains including but not limited to Ethereum, Klaytn, and Polygon must be converted into a TON-compatible format (o-asset) through Orbit Bridge prior to being deposited into Megaton Finance.
Users must carefully check the asset type and address in depositing and withdrawing from Megaton Finance. If the user deposits an asset that is unsupported on the TON blockchain or misenters the deposit address, the asset will not be deposited and may be permanently lost.
Megaton Finance is a decentralized interface where the private keys of users are not stored centrally. This means deposit error due to user negligence is, by system design, impossible to reverse, including for assets mentioned above. This means that the way Megaton Finance can and will handle wrongly deposited assets is inherently different from how it is dealt with at centralized exchanges such as Binance, Gate.io, Kucoin, Huobi, Upbit, and Bithumb.
Megaton Finance is continually improving upon its user interface to lower the rate of wrong deposit incidents, including but not limited to, showing warnings, and announcements. Megaton Finance will continue to explore ways to make the user experience as seamless as possible within the boundaries of maintaining decentralization.
To prevent losing valuable assets, we recommend that users test with a small number of assets prior to sending a larger amount.
For deposit and withdrawal problems occurring as a result of using Orbit Bridge, please refer to the respective service’s policies.
Providing Liquidity(Deposit), Removing Liquidity(Withdraw), Swap
You can act as a Liquidity Provider by providing liquidity to a Liquidity Pool (yield farm) in Megaton Finance; however, you must be fully aware of the risks involved and must make responsible financial decisions on your own accord.
1. Assets
Megaton Finance is a decentralized interface that does not have its protocol authority centralized to a specific entity.
The user is responsible for all trading activities made through Megaton Finance and is also responsible for all due diligence (DD) regarding the token to be bought, and the company or foundation behind the said token. It is entirely your responsibility to be aware of the risks involved, in trading a token or providing liquidity for a token.
2. Price The liquidity pool ratio of tokens within the contract determines the price of each token within Megaton Finance. As an automated Smart Contract is responsible for adjustment to price as per the formula (x*y=k), the price shown on the Megaton Finance interface may not be the same as prices shown at exchanges, and cannot be guaranteed for accurate prices.
[Article] How AMM predicts prices
The price of each token at the point of deposit, withdrawal, and swap is determined as per the formula above (the swap ratio of a token pair) and is not determined by the amount of the swap.
The swap ratio of two tokens may also change through the number of people participating in the swap. This may result in the actual number of tokens achieved after a swap differing from the number displayed on the Megaton Finance interface.
Megaton Finance Protocol has safety mechanisms in place to minimize losses resulting from a change in swap ratio, by limiting the range in which the swap request is executed. However, it is the user’s responsibility to carefully check the ratio prior to executing pool deposit, withdrawal, and swap.
3. Provision of existing pair Users can earn returns from MEGA distribution, and transaction fee distribution by depositing their assets in existing pair deposit services through the Megaton Finance interface.
However, should the price of assets change drastically due to market fluctuations, the value of the user assets in the pool may be different from the expected value, even to a point of a loss.
However, these losses are finalized upon withdrawal from the pool, and for this reason, these losses are called “Impermanent Loss’ - of which you can find out more details in the link below. If the price difference between the two assets becomes closer to what they were at the time of depositing into the pool, the actual loss would minimize. Also, total profit must be considered with the MEGA mining rate and transaction fee reward as well.
[Article] What is Impermanent Loss?
Price Oracle
Stablecoins are calculated as fixed values ($1.0).
Determination of value for other coins, considering the scale of liquidity of each asset, are Bithumb, Coinone, Huobi, gate io, Chainlink, and pool exchange ratio (price) in Megaton Finance. sed on the median value of the price of centralized exchanges such as Binance, Upbit, Bithumb
Service Agreement
Megaton Finance is a web-app interface that allows users to use their TON blockchain wallet to communicate with a decentralized protocol to swap assets and provide liquidity. This means Megaton Finance wields no control over individual Liquidity Pools or the trust of a swap. It is the user’s responsibility to carefully consider the benefits and risks related, by taking into consideration the token price and ratio at the moment of swap.
Expected return rate, token price, and all other information provided by the Megaton Finance interface serve to help users make informed decisions for providing liquidity, removing liquidity, swapping, and should not be used to make financial decisions. Megaton Finance is designed to provide, within a reasonable scope, accurate information, but does not guarantee the timeliness or accuracy of the data.
Megaton Finance is not responsible for user loss of assets, and for generating profit that is less than the projected profit, resulting from the use of Megaton Finance.
Megaton Finance does not guarantee the continuity of Megaton Finance service, and of the functions within. Any service or functions provided within Megaton Finance can be added or deleted permanently, and Megaton Finance itself may be stopped or changed (In the case of a permanent stoppage of Megaton Finance service, users that may be affected will be given a reasonable period (30 days or more) and notifications/guides).
Megaton Finance does not guarantee the reliability of the TON blockchain platform used by Megaton Finance Protocol, as well as any other 3rd party services.
Development and update of Megaton Finance Protocol aim to rely on a decentralized voting and consensus system; however, developers and governance participants of Megaton Finance protocol are not responsible in any way for any and all parts of Megaton Finance Protocol.
Megaton Finance is a decentralized, autonomous Smart Contract application designed to provide safe and transparent financial opportunities through direct interaction with the TON blockchain. However, due to the complexity of software code and the nature of technology, the integrity of the code cannot be guaranteed.
Smart Contract codes used in Megaton Finance are susceptible to vulnerabilities, and risks of asset loss exist from hackers and flash loan exploits utilizing these vulnerabilities.
There is a continuous effort to maintain the block sync between Megaton Finance and the TON network; however, the Megaton Finance interface may be stopped without prior notice due to problems in the network resulting from transaction congestion, computer system errors and software attacks, and other factors, such as natural events. Megaton Finance is not guaranteed to work at all times.
In aforementioned situations and more, there may be errors in the values/information displayed on the interface, as well as stoppage of service connection. User requests for swaps, deposits, withdrawals, and other transactions may be delayed or fail.
Megaton Finance cannot be held responsible for any of the aforementioned cases within the reasonable boundaries of the law, provided Megaton Finance itself is not responsible for the occurrence of such a case.
This revision regarding the service will be effective from December 09, 2022
Service Agreement Change History
(December 9, 2022) : Initially declared
Last updated