Risks

A borrower may not repay, and nothing secures the loan

Crowd loans have no collateral. If a borrower does not repay, the contract has nothing to seize: lenders recover only what the borrower chooses to repay. After the repayment deadline, interest keeps accruing, there is no late fee, and the loan can be marked as not repaid in time, but nothing on-chain forces the borrower to pay.

You usually do not know who a borrower is. A wallet address does not tell you a name, a country or whether you could pursue a debt in court.

A reputation score is not a credit check

Each borrower's 0 to 1000 score is built from public wallet history and third-party reputation services. It can be incomplete, out of date, wrong or manipulated, and it does not yet include a borrower's repayment history on Unlloo. The contract does not check the score: any wallet can request a loan. Treat the score as one input to your own judgment, not as a rating or a promise of repayment.

Your money is locked for a time

• An offer cannot be withdrawn while the loan's funding window is open.
• Once offers reach 80% of the request, they also cannot be withdrawn during the borrower's selection window.
• Money in an accepted offer is with the borrower. It comes back only as the borrower repays, and there is no way to sell or exit a loan early.
• Refunds and repayments are not sent automatically: you withdraw and claim them yourself.

Smart contract risk

Funds are held by a smart contract. A bug in its code, or an unexpected interaction with a token or another contract, could cause funds to be lost or locked. The contract is upgradeable, so its code can change over time.

Admin key risk

A single wallet holds the contract's admin roles. If that key were lost, stolen or misused, it could pause new loans, offers and acceptances, cancel loans that are still funding, change the limits for new loans, and grant or revoke roles with immediate effect. It could also upgrade the contract, including the code that holds escrowed funds, after a public 3-day timelock. Three days' notice does not let lenders in an active loan leave, because that money is with the borrower. A pause never blocks repayments, claims or refunds. The full list is on the Security page.

Stablecoin risk

• USDC, USDT and DAI aim to stay worth one US dollar, but each can lose that value, for a short time or for good.
• Circle (USDC) and Tether (USDT) can freeze the tokens held at any address, including a contract. Frozen tokens cannot be withdrawn, lent or repaid.
• DAI depends on the collateral behind it and on its governance.
• A loan is repaid in the token it was made in. Unlloo does not swap or insure tokens.

Network and wallet risk

Every action is an Ethereum transaction that costs a network fee, can be delayed when the network is busy, and cannot be reversed once confirmed. Unlloo never holds your keys and cannot recover a lost wallet or undo a transaction. Use the app only at app.unlloo.com, check the contract address on the Security page, and be wary of anyone who messages you first offering help or a loan.

No insurance and no guarantee

Unlloo is not a bank. Money you lend is not covered by deposit insurance or any compensation scheme, and nobody, including Unlloo, guarantees that a loan will be repaid.

Legal, regulatory and tax risk

Rules on crypto lending differ between countries and can change, and they may limit or prohibit your use of Unlloo. You are responsible for following the law that applies to you and for any tax on interest you earn.

Third-party services

Reputation scores, wallet connections and network access depend on services Unlloo does not run. They can be unavailable, slow or wrong.