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Protocol Risk

Risks

The blockchain space is still evolving, bringing in new rules and implementation concepts. Developing a future-ready solution is always a difficult task, but ensuring the security of the applications and platform will always be a top priority. Keeping the security aspect in mind, the Capx team has decided to use upgrade-able smart contracts to quickly resolve any bugs (if discovered) on the platforms.
Most people in the cryptocurrency space are aware of the risks involved, but the prices of most crypto assets are highly correlated to Bitcoin and/or Ethereum. This means major price fluctuations in the CAPX token can occur for reasons that have little to do with CAPX or the Capx platform.

Audits

Curve smart contracts are being audited.
However, security audits don't eliminate risks completely. Please don't supply your life savings or assets you can't afford to lose to Capx.
Using Capx as an exchange user should be significantly less risky, but this is not advice.

Admin keys

Capx is fully decentralized with the launch of Capx DAO. There's a Guardian which is able to pause the protocol functionality during the first few months in existence, and Capx DAO can unpause them at any time.
The Guardian, 59.999% support, and 51% quorum Capx Guardian can act when there's a danger of loss of funds and call the kill_me function of Capx Protocol contracts which disables all functionality except for withdrawals. Capx protocol functionality can be reenabled back by either Guardian or Capx DAO. The Guardian is controlled by Capx DAO, which can add or remove Guardian members.
Smart contracts CAN be upgraded. This opens up various doors to take action in case of an emergency but leaves users fully in control of their funds.
Capx will be transitioning to a DAO to be fully decentralized.

Staking risks

When staking, you use multiple smart contract products, each of which has its own risks.

Mitigations

As a decentralized platform, the Capx team is committed to decentralization and censorship resistance — this will be a gradual process as the system matures. This includes crucial areas such as our up-gradable contracts, upgrades to any platform contract using governance, i.e., community, stakeholders, investors become a part of the process. A multi-sig wallet will control the upgrade-ability of the contracts.
Another crucial area is platform Governance, initializing regular community meets to ensure the project’s goals are met & discussed within the community. A formal Change Management Program will enact all future decisions governing the protocol to allow the community to discuss & introduce change proposals. Any changes to the protocol are well understood and acknowledged by all stakeholders.
Bug Bounty Program, allowing developers, independent bug bounty hunters to discover security vulnerabilities and weaknesses in systems before the general public is aware of such vulnerabilities, preventing incidents of widespread attack and compensating them for the exploited vulnerabilities of the platform.
Last modified 11mo ago
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Risks
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