Risks
Can I lose my assets?
Moonpot is a win-win prize game. The whole point of Moonpot is that no one needs to lose. Everyone can win!
If you deposit assets in one of our Moonpots you are taking a journey where every path leads to victory. You always win thanks to the interest received on your crypto. And you’re in with a weekly shot at a crypto prize win. With no risk to your deposit.
That last point is important to remember.
Even if you don’t win the big prize you never lose your original stake. Your holdings grow daily thanks to the interest earned. And by being part of the Moonpot you get to play the prize game every week — with no risk to your original deposit.
The only way you risk losing anything is if the DeFi product or platform Moonpot is using to earn yield on collapses.
But this is why we avoid risky DeFi products and accept lower yields in favor of the security that comes from working with proven blue-chip partners and DeFi savings plans.
Can I lose my staked tokens?
No. Moonpot will never take your staked tokens from you.
Your deposited tokens are always yours. No matter if you have a prize-winning ticket or not.
Please note, however, that for our weekly Moonpot prize games there is an initial Fairplay Timelock of ten days in place to ensure users don’t hit and run without contributing to the platform. Early withdrawal will lead to a maximum 2.5% Fairness Fee. This is done to guarantee fairness for all players in each pot.
Moonpot is built on everyone’s assets being bundled together to earn interest for each individual and for the wider prize pots. So the Fairplay Timelock exists to prevent someone depositing just before a prize draw, and then immediately withdrawing without penalty if they don’t have a winning ticket.
In practical terms, once you deposit your tokens you cannot remove them without paying the Fairness Fee until the funds have been there for ten days.
With daily interest and a weekly prize draw, it makes more sense to keep them in the pot once the Fairplay Timelock is over.
What risks am I taking when staking on Moonpot?
Nothing is entirely risk-free.
Every decision you take in life carries some element of risk. Even if it’s something as mundane as crossing the street or taking a shower.
Accidents happen. So it would be dishonest of us to say there is absolutely zero risk using Moonpot.
But what we can say is that Moonpot believes safety is more important than anything else.
Our mission is to help you grow your assets, not lose them. And so Moonpot puts security above all.
Assets are deposited in special Certik-audited pots created by the trusted and proven team at Beefy Finance — one of the most reputable projects in DeFi.
We avoid risky DeFi products and accept lower yields in favor of the security that comes from working with proven blue-chip DeFi savings plans.
You always earn interest and no deductions are taken from your stake for being part of the regularly held prize game.
The only risks we can think of are:
(1) if there is a bug or exploit in Moonpot’s smart contracts that can be taken advantage of, or
(2) if one of the DeFi products we’re using to earn interest for the platform has a problem or fundamental failure.
We’ve worked hard to reduce these risks by:
(1a) having our code extensively audited by Certik — a third-party auditing service that specializes in smart contracts, and delivers the most advanced security audits in the crypto industry
(2) being very cautious about which partners and products we work with to earn interest
That’s a long answer. But we want to give you as much information as possible to be able to make your own risk assessment.
Ultimately it’s your money and your decision.
What can I lose?
You can’t lose your deposit with Moonpot. You can’t lose your interest with Moonpot. There is no risk of impermanent loss with Moonpot (aside from our POTS-BNB LP Pot for advanced users).
Deposit your assets in one of our pots and you’re entering into a win-win prize game. You always earn interest on your savings, and you play each prize game with no risk to your deposit.
So there’s really not much you can lose here!
If your brain thinks in USD then you could potentially ‘lose’ dollars if, say, you buy CAKE to deposit into our CAKE Moonpot, and then the dollar value of CAKE goes down more than your savings go up via interest payments. But that’s a question of perception.
You would not be ‘losing’ your deposited asset — that will only grow.
The big thing we think important to flag is if there’s a major and unforeseen calamity in the wider DeFi markets. Which could then impact your Moonpot holdings.
In which case, yes, you would lose your assets through the systemic failure of BNB Chain, for example — but this is the extreme worst-case scenario. We just think it important you recognize that risk before depositing anything.
Look, we’ve made Moonpot as safe as we can. But this is still DeFi.
And like all sound investment advice please be sure to never invest money you can’t afford to lose.
How do I know this isn’t a scam?
This isn’t a scam.
Of course, that’s what a scam project would say. And users in the DeFi space have sadly fallen victim to a number of scams in recent times. So why should you trust Moonpot with your assets?
Quite simply it’s a fully audited project built by the proven and tested team at Beefy Finance — one of the most recognized names when it comes to trust in the DeFi world.
First, let’s discuss the audit.
The code behind Moonpot’s smart contracts has been extensively analyzed and audited by Certik — a third-party auditing service that specializes in smart contracts.
Certik delivers the most advanced security audits in the crypto industry and has conducted rigorous audits for hundreds of blue-chip blockchains and DeFi protocols.
And then there’s the Beefy Finance connection.
Moonpot is essentially a brand extension from core members of the Beefy team working alongside carefully selected partners.
The backing of this proven project — which already safely manages close to a billion dollars of assets — means you can be sure that the code, savings pots, and prize mechanism are entirely secure and trustworthy.
Beefy was one of just three projects picked out of 650 submissions to receive the Most Valuable Builder award from Binance for the quality and reliability of its work on BNB Chain.
Scammers don’t safely handle close to a billion dollars before building another audited project. But again, that’s up to you to decide!
How can I trust the winning tickets are picked randomly?
This is a project where code is law, and the system is proven to be fair.
Each prize-winning ticket is picked via an objective third-party random number generator. The code can be checked and no one at Moonpot has any way of influencing who wins.
For those who want to do a deep dive on the details, the Moonpot protocol uses Chainlink VRF (Verifiable Random Function) — a provably fair and verifiable source of randomness designed for smart contracts.
But the short version is that using Chainlink VRF means prize-winning tickets are guaranteed by code to be randomly picked.
It’s a provably fair process that takes place with zero involvement from the Moonpot team, and which can be 100% verified by anyone who wants to check the cryptographic proof.
Last modified 2mo ago