Tracer Interfaces Disclaimer

Your use of a smart contract governed by Tracer DAO, including a Tracer Perpetual Pools or Tracer Perpetual Swaps contract and the Tracer Factory (“Tracer Suite”), involves various risks, including, but not limited to, the risks outlined below. By interacting with the Tracer Suite, you accept those risks. If you choose to use the Tracer Suite, this Disclaimer applies in addition to Tracer’s Terms of Use, which are available here.

Price and Asset Risk

Asset losses are possible due to the fluctuation of prices of tokens. You acknowledge that financial contracts involving cryptocurrencies are inherently risky, some cryptocurrencies are not recognised legal tender in some countries, are unregulated by many central and government authorities, and may be subject to extreme price volatility. You warrant that you understand the risks associated with transactions, cryptocurrencies, financial contracts and any other goods, services or products in connection to the Tracer protocol. Before using the Tracer protocol, you should review the relevant documentation to make sure you understand how the Tracer protocol works.

Liquidation Risk

When interacting with the Tracer Suite, your positions may be subject to liquidation risk. Despite having well defined liquidation penalties, your loss could be 100% of your position. This risk is not only theoretical, during the so-called “Black Thursday”, around $8M of user’s positions in MakerDAO was lost. The Tracer Suite is non-custodial, and therefore can not help users to avoid liquidations, or recover funds following liquidation.

Oracle Risk

Tracer DAO relies on oracles to provide spot price data for assets. This price data is used as part of the mint and burn functions (for Perpetual Pools) and liquidation flow (for Perpetual Swaps) and, as a result, has inherent risks. Should oracle prices not be updated, or should they be updated erroneously, there is risk a user may suffer loss, or be liquidated, unexpectedly. Currently, the Tracer Suite uses Chainlink’s oracle network; this may be subject to change.

Smart Contract and Software Risk

The Tracer Suite has been audited (Perpetual Pools by Sigma Prima and Perpetual Swaps by Sigma Prime and Code 423n4). The contracts were checked for correctness of functionality and safety of user funds. However, an audit does not eliminate the risk of an exploit or bug being present in the Tracer protocol. You must do your own research before interacting with the Tracer protocol, and only supply funds that you are prepared to lose.

Contract Upgrade Risk

Contract upgrades may be implemented by Tracer DAO, via proposal, to the Tracer Suite. While these upgrades will likely be audited prior to implementation, the Tracer Suite’s codebase is subject to change and, as such, risks of exploits and bugs are present. You must remain aware of updates being implemented by Tracer DAO to the Tracer Suite, and ensure that, following any update, the Tracer Suite is safe to use.

Governance Risk

Tracer DAO owns and controls the Tracer Suite. Upgrades and modifications to the protocol are managed in a decentralised manner by holders of TCR governance tokens. No entity involved in creating the Tracer Suite (including developers) will be liable for any claims or damage whatsoever associated with your use, inability to use, direct, indirect, incidental, special, exemplary, punitive or consequential damages, or loss of profits, cryptocurrencies, tokens, or anything else of value. For the avoidance of doubt, Tracer DAO does not control user funds.

Developer Must Comply with Applicable Laws

Tracer DAO is not responsible for the actions of Tracer Suite users. Users of Tracer Suite are solely responsible for ensuring compliance with the laws of their specific jurisdiction. Tracer DAO are curators of the Tracer Suite and maintain no liability for the repercussions, actions and consequences of material created using the Tracer Suite.

Limitation of Liability

TRACER DAO, ITS AFFILIATES, THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUPPLIERS, OR LICENSORS MAKE NO WARRANTIES OR REPRESENTATIONS ABOUT THE TRACER SUITE, ITS CONTENTS, OR ANY CREATION OR ANY DERIVATIVE OF THE TRACER FACTORY INCLUDING BUT NOT LIMITED TO, ITS ACCURACY, RELIABILITY, FUNCTIONALITY, COMPLETENESS, OR TIMELINESS. ANY CREATION BY A USER OF THE TRACER SUITE IS NOT THE RESPONSIBILITY OF TRACER DAO AND THE USER INDEMNIFIES TRACER DAO AGAINST ANY AND ALL CLAIMS THAT MAY ARISE OUT OF USING THE TRACER SUITE. USERS ACKNOWLEDGE AND AGREE THAT THEY TAKE SOLE RESPONSIBILITY FOR CREATIONS OR WORKS OF THE TRACER SUITE AND ACKNOWLEDGE THAT THEY USE THE TRACER SUITE AT THEIR OWN RISK.

Discussions with updated information on the Tracer protocol’s governance can be found in Tracer DAO's Discourse.