# Risks and Limitations

# Key Risks

DeFi protocols have been hacked before and there is a large incentive to steal user assets from the protocol. Votre has been designed in such a way that minimizes hack surface area to, on average, around ~25% of TVT (Total Volume Traded), since users take the majority out as a loan day one.

Note on mitigation: Votre works with top security firms in the space to ensure user funds are protected from hackers. Votre will also run a bug bounty program to disincentivize hacking and encourage bugs to be reported for a smaller, legal payoff.

These include sequencer downtime, MEV, or any other bespoke risk to any layer 2 Votre is deployed on.

Users, when repaying loans, must consider the liquidity of the market they are repaying into. If the Uni v3 pool is illiquid, slippage could eat up a large portion of repaid funds, leading to poor execution.

# Key Limitations

This can be partially mitigated with rolls and even more so with "auto-roll", which remains under development

Where there is money to be made, solvers tend to participate.

This is rarely an issue, after all, if there's no spot market, why even try to create products that are more complex.

Votre can be a lot for the average user to understand, which is why we're committed to transparency and simplicity.

Solvers may not always provide roll pricing, which is a risk.

Solvers may not be willing to quote the latest dog, frog, or memecoin.

It's arguably better to have the market absorb this sale in good times rather than bad, however market impact is largely unavoidable, as it's inherently bearish to borrow against an asset.