rETH Risks Disclosure

Before you start to use rETH App to stake ETH, please be aware of the following potential risks:

1) Smart contract security There is an inherent risk that rETH App could contain a smart contract vulnerability or bug. The rETH App is open-sourced, audited and covered by an extensive bug bounty program to minimize this risk.

2)Redemption Risk Since ETH2.0 will not support transfer and redemption until Phase 2 goes live, the redemption of rTokens will follow that timeline. We will tag along with ETH 2.0 and support the function in time.

3)ETH 2.0 - Adoption risk StaFi rETH App is aimed to provide the liquid staking services of ETH2.0, which still has the chance to fail to reach required levels of adoption. So there exists a significant fluctuations in the value of rETH tokens when the beacon chain development could not match the community’s expectations.

4)Slashing risk ETH 2.0 validators risk staking penalties, with up to 100% of staked funds at risk if validators fail to validate transactions or double signing. we require any validator to pay 8ETH as a deposit. When Slash occurs, the deduction will be made from the deposit pool to protect users' assets.For details please read:https://medium.com/stafi/stafi-reths-solution-to-the-slash-of-eth-ae44e3767fb0

5) rETH price risk Now rETH tokens could be traded against with ETH on Uniswap, but the rETH/ETH price on Uniswap would be lower than the real exchange rate in rETH App because of the inefficient liquidity and AMM algorithm.

StaFi is driven to mitigate the above risks and eliminate them entirely to the extent possible. Despite this, they may still exist.