This page describes the material risks of using Tori Finance. Read it before depositing.
Overview
Like all DeFi products, Tori involves risk. The protocol is designed with multiple safeguards, but no system eliminates risk entirely. Key point: trUSD is a synthetic dollar backed by trading positions. That is a different construction from fiat-backed stablecoins like USDC or USDT, and it carries different risks.Strategy risk
Rewards come from trading strategies with a long institutional track record. They still carry risk:Delta-neutral strategies may experience temporary fluctuations. These are expected and typically resolve as positions
converge. This is normal behavior, not necessarily a permanent loss.
Smart contract risk
Tori relies on smart contracts deployed on public blockchain networks:
Audits reduce risk substantially. They cannot guarantee the absence of vulnerabilities.
Counterparty risk
The protocol works with outside partners, and each one is a dependency:
Exposure is diversified across multiple partners to limit concentration. Custody arrangements are described in Backing & Reserves.
Peg risk
trUSD is designed to track $1.00, but its market price can deviate. Deviations create arbitrage opportunities that work to restore the peg, and the protocol may participate in that arbitrage itself. The larger the deviation, the greater the incentive to correct it. See Peg Mechanism for how this works.Liquidity risk
Regulatory risk
Crypto regulation continues to evolve and may change in any jurisdiction. You are responsible for compliance with the laws that apply to you. The protocol monitors regulatory developments and adapts as they land.Technology risk
Important disclaimers
Security infrastructure
The audit history, bug bounty terms, and monitoring stack are documented in Security. Reserve attestations are published at tori.accountable.capital.Your responsibilities
By using Tori Finance, you acknowledge that you:- Have read and understood the Terms of Service, including General Risk Disclosures
- Are solely responsible for your decisions to use the protocol
- Are using amounts appropriate to your personal risk tolerance
- Have conducted your own research and due diligence
- Are complying with applicable laws in your jurisdiction
Questions?
This document is informational and is not financial, legal, or tax advice. For questions about risks or how Tori works, join our Discord.Last Updated: August 2026