Pika Protocol is an experiential product like all the other DeFi projects, and it needs time to iterate before becoming perfect. There are some potential risks of the protocol users need to be aware of.

General Smart Contract Risks

Like any other DeFi protocols, Pika Protocol has smart contract risks: there is a potential for the funds to be lost due to code bugs. This will be mitigated by smart contract auditing, testnet testing and use over time.

Pika Exchange Risks

The virtual automated market maker(vAMM) is a concept that has been battle tested by Perpetual Protocol in the last few months, and we have made improvements such as making liquidity adjustment dynamic, tokenizing the leverage positions and optimizing the liquidation by not relying on external bots. However, vMM is still a new concept and needs time to get matured. For example, how to dynamically adjustment of K is something that needs time to be proven.

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