Skip to main content

Risks

Using the platform includes substantial risks of losing some or all of your funds. The Creative core team and community have made every effort to ensure the security of funds.

This section will help you understand the types of risk you are taking what has been done to mitigate them and how to mitigate them further.

Protocol Dependency Risk​

The Creative platform uses several other protocols. Therefore, the first type of risk is the risk that these other integrated protocols can fail.

Specifically by using Creative you are also taking on the risks of using the Ethereum network, the collateral you are depositing, and the yield service (currently Compound.Finance).

To mitigate this risk the platform is only integrated with highly reputable and well secured protocols.

Smart Contract Exploit Risk​

The second type of risk is specific to Creative. The risk is that there could be some sort of bug or exploit in the smart contracts or integrations that power the Creative platform. This is a risk with any product on Ethereum. Depending on what the bug or exploit is, a nefarious person may be able to take some or all of the funds stored in connected protocols. Here’s what we’ve done to mitigate this risk.

  1. Third-party infrastructure. Creative integrates with established providers — including Crossmint, Alchemy, Aave, Yearn, and Story Protocol — that maintain their own security practices, audits, and (where applicable) public bug bounty programs for the underlying smart contracts.
  2. Non-custodial software model. Creative Platform Inc. operates as a software interface. Users retain control of their wallets and assets through third-party wallet and custody providers; the corporate entity does not hold user funds.
  3. Reputable integrations only. The platform is integrated with highly reputable and well secured protocols. We conduct extensive internal testing before shipping new integrations.
  4. Open source where applicable. Integration code and publicly deployed contract interfaces are reviewable by the community and security researchers.

Protocol-specific smart contracts or community-driven security initiatives fall under Creative Organization DAO, LLC — not the primary corporate interface.

Wallet Loss Risk​

This risk doesn’t have anything to do with Creative, but we wanted to mention it. Using Creative requires you to use an Ethereum wallet that supports Ethereum apps. If you permanently lose access to this wallet, you will not be able to recover your funds. Different wallets have different recovery mechanisms. It’s important for you to know what those are and be able to recover your wallet. Argent Wallet is one example of a wallet with good recovery methods.