Security and Risks

Please use our pools at your own discretion. Fruitypool is currently in Beta. Trading digital assets entails risk, and the value of digital assets fluctuate. Fruitypool is provided "as is", at your own risk, and without warranties of any kind. We will always take a safety-first approach.

How much of customer funds are kept in the smart contract?

We daily review the funds in the smart contract. We limit the amount to only ensure the next days operations.

How do Fruitypool keep my funds secure?

This is our top priority. We use industry best practice of a true multi signatory wallet structure to keep user deposits secure. Our transactions are signed off chain. Our multi signatory logic can be thought of as a safe that requires multiple unique keys to open it and move the assets. That means that even if one of the keys is compromised the assets remain secure. We have no single point of failure.

This is the highest level of security, as we require multiple keys from multiple hardware wallets to move customer assets. This is a higher level of security than one wallet with its key divided across multiple parties (MPC).

We will always take a safety-first approach.

What are the risks?

We are a Solana project powered by Deribit and Circle, two behemoths in the crypto industry. We have no liquidity fragmentation or poor user experience caused by unofficial, bridged versions of USDC floating around our ecosystem.

Whilst we want our users to have a lower risk profile fruitypool is not risk-free. At every step we have designed fruitypool to mitigate risk, the possibility of loss cannot be eliminated completely. It is the user’s responsibility to be aware of the risks before entering a pool.

Risk - Smart Contract:

The majority of user funds are stored and managed via multi-signatory cold wallets and not kept within the smart contract.

Risk - Exchange counter party:

We minimise the amounts we need to keep at counter parties. Some funds will be sent to CEX. Our exchange counter parties have significant default funds.

Risk - USDC de-peg:

USD Coin (USDC) is a stablecoin redeemable on a 1:1 basis for US dollars, backed by dollar denominated assets held in segregated accounts with US regulated financial institutions.

USDC, like other stablecoins, is designed to offer a “stable” store of value and a medium of exchange compared with more traditional cryptocurrencies like Bitcoin and Ether, which can be highly volatile.

Despite the potential benefits, stablecoins are not without risks. The most significant risk with any stablecoin is the potential for its peg to break, causing it to lose its value relative to the underlying asset.

De-pegging is where the value of a stablecoin deviates significantly from its pegged value.

USDC is a fully reserved backed stablecoin, meaning every USD Coin is backed by actual cash and short dated United States treasuries.