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General Risk Disclosures

Last Updated: 13 October 2025

The following Risk Disclosure Statement ("Statement") is intended to inform users ("Users") of the potential risks associated with interacting with the Hypezion Finance ("Protocol" or "Platform"), which operates within the decentralised finance ("DeFi") sector on HyperEVM.

By engaging with the Platform or its associated smart contracts, Users acknowledge, understand, and accept the risks outlined below. This Statement does not cover all possible risks, and Users are strongly encouraged to conduct independent research and seek professional financial, legal, and technical advice before using the Platform.


1. General Protocol Risks

1.1. Decentralised Finance and Blockchain Risks

Hypezion Finance operates on blockchain-based, open-source smart contracts deployed on HyperEVM. These systems inherently carry the risks associated with blockchain technologies and decentralised protocols — including, but not limited to:

  • smart contract vulnerabilities or logic errors,
  • decentralised governance dynamics,
  • delayed transaction finality,
  • reliance on third-party oracles, and
  • potential instability in blockchain network performance.

Users should understand that DeFi protocols differ fundamentally from traditional financial systems and remain in an experimental and rapidly evolving stage.

1.2. Protocol Provided on an "As-Is" Basis

The Hypezion Finance and its web interface (the "App") are provided on an "as-is" and "as-available" basis, without warranties of any kind.

Hypezion Finance team makes no guarantees regarding functionality, reliability, or uptime of the Platform and disclaims all liability for service unavailability, errors, or other technical issues that may lead to financial or operational losses.


2. Financial and Market Risks

2.1. Market Volatility

Crypto assets are subject to extreme volatility. The value of digital assets and collateral supporting hzUSD or shzUSD may change abruptly due to market fluctuations, liquidity shifts, or macroeconomic events. Users should expect rapid price movements that can materially affect their holdings or staking positions.

2.2. Liquidity Risks

Liquidity in on-chain markets and stability pools may vary. Low liquidity can prevent Users from redeeming, swapping, or unwinding positions when desired. Sudden liquidity contractions, market congestion, or large redemptions may amplify volatility or slippage.

2.3. Redemption and Stability Pool Risks

The Hypezion Finance allows redemption of hzUSD against collateral and participation in the Stability Pool through shzUSD. These mechanisms carry risks, including:

  • changes in redemption fees or collateral availability,
  • delayed or partial settlement during periods of high volatility,
  • fluctuations in reward rates or APY, and
  • smart contract failures or parameter updates that affect yields or redemption outcomes.

2.4. No Guaranteed Yield or Stability

Neither hzUSD nor shzUSD represents a guaranteed return, peg, or yield. Stability and yield depend on the broader market environment, system parameters, and user interactions within the Protocol.


3. Technology and Security Risks

3.1. Smart Contract Risks

All operations within the Hypezion Finance are governed by autonomous smart contracts on HyperEVM. While these contracts undergo audits and testing, vulnerabilities or bugs may still exist. Exploits or logic flaws can result in partial or total loss of funds, including collateral or stablecoins.

Users interact with the contracts at their own risk.

3.2. Cybersecurity Risks

DeFi systems face ongoing threats, including hacking, phishing, key theft, and denial-of-service attacks. Even with industry-standard security measures, no system is immune.

Users must practice strict personal security hygiene — using secure wallets, verifying URLs, and protecting private keys — to avoid loss.

3.3. Blockchain Network Risks

As a protocol built on HyperEVM, the Platform relies on the underlying network's functionality. Network congestion, high gas fees, validator instability, or forks can impact transaction success and timing.

The Platform disclaims responsibility for losses arising from network malfunctions or degraded performance.

3.4. Irreversibility of Transactions

Blockchain transactions are final and irreversible once confirmed. Users must verify transaction details carefully before broadcasting. Mistaken or malicious transactions cannot be rolled back.


4.1. Evolving Regulatory Environment

The regulatory landscape for decentralised finance, stablecoins, and blockchain networks remains uncertain and is evolving rapidly. Changes in law or enforcement priorities may impact the ability of Users to access or use the Platform.

Hypezion disclaims any liability for losses or restrictions resulting from regulatory developments or jurisdictional prohibitions.

4.2. Jurisdictional Restrictions

Access to the Hypezion Finance may be restricted in certain jurisdictions where digital asset activities are limited or prohibited.

Users are responsible for ensuring that use of the Platform complies with the laws applicable in their jurisdiction.

The Platform may implement geo-blocking or access controls to comply with relevant regulations.

4.3. Tax Obligations

Users are solely responsible for determining and fulfilling any tax obligations that arise from their use of the Platform.

Hypezion Finance does not provide tax advice. Users should consult qualified tax professionals regarding income, capital gains, or other liabilities related to their transactions or holdings.


5. User Responsibility and Knowledge Assumption

5.1. Independent Due Diligence

Before using the Hypezion Finance, Users should conduct independent analysis and understand how stablecoin systems, yield mechanisms, and smart contract interactions function.

The Platform is not liable for losses arising from misunderstanding or misuse of the Protocol.

5.2. No Financial or Investment Advice

All content and communications related to Hypezion Finance are for informational purposes only and do not constitute investment, legal, or financial advice.

Users must independently evaluate whether participation aligns with their risk tolerance and financial situation.

5.3. Self-Custody and Wallet Management

Hypezion Finance is non-custodial. Users maintain full control of their wallets and private keys.

Loss of private keys, seed phrases, or wallet access credentials will result in permanent loss of assets, and Hypezion Finance cannot assist in recovery.


6. Operational Risks

6.1. Protocol Stability and Maintenance

As a decentralised protocol, Hypezion Finance may undergo upgrades, parameter adjustments, or maintenance that temporarily affects service availability.

Downtime, contract migration, or infrastructure changes may delay or suspend operations. Hypezion Finance disclaims liability for losses arising from such interruptions.

6.2. Third-Party Dependencies

The Platform depends on external systems and providers — including RPC endpoints, liquidity venues, oracle providers, and indexers — for data and execution. Failures or inaccuracies in these third-party services may impair functionality or lead to unexpected outcomes.

6.3. Network Forks and Upgrades

Underlying blockchain networks (e.g., HyperEVM) may experience forks, protocol changes, or governance updates that alter network consensus or asset behavior. These events could impact hzUSD, shzUSD, or related assets.

Hypezion Finance is not responsible for losses caused by such network-level events.


7. Governance and Protocol Development Risks

7.1. Governance Changes

The Hypezion Finance ecosystem may incorporate on-chain governance mechanisms where token holders influence key parameters, upgrades, or fee structures.

Users acknowledge that governance outcomes are determined collectively and may not align with individual preferences or interests.

7.2. Upgrades and Feature Modifications

The Protocol may implement new features or modify existing components.

Each change may alter the risk profile of the system, and new features could introduce unforeseen vulnerabilities. Users should stay informed via official documentation and community channels.

7.3. Experimental Nature of DeFi Systems

Decentralised protocols, particularly those involving synthetic or algorithmic assets such as hzUSD, are inherently experimental.

While designed for stability and transparency, system dynamics are complex and may behave unpredictably in extreme conditions.


8. Acknowledgement of Risk and No Recourse

By using the Hypezion Finance Platform, Users acknowledge and accept all risks described in this Statement and any other inherent or unforeseen risks related to decentralised finance, blockchain systems, or digital asset markets.

Users understand that Hypezion Finance team is not liable for financial losses, damages, or legal consequences resulting from such risks, including those arising from smart contract failures, network events, governance actions, or market volatility.

Users waive any claim, right, or recourse against the Platform and its contributors in connection with the use of the Hypezion Finance.


For questions or further information:

Join the Hypezion Finance's Discord Server.