Risks

Before engaging with the Bunnybox protocol, it's essential to understand and acknowledge the associated risks. The protocol's operational procedures inherently expose certain risks, which users should be mindful of. It's advisable to review the Security & Audits section for further insights.

Smart Contract Risk: Bunnybox operates exclusively on public smart contracts, extensively detailed in the documentation. As a public infrastructure, the protocol's code is open and transparent, subjecting all actions and consequences to the entities initiating transactions. While the protocol adheres to specified standards, the collective responsibility for the correctness of code deployment isn't guaranteed. Users are encouraged to conduct thorough research and due diligence.

Project Owner Risk: Each project within the Bunnybox protocol is governed by the address holding a unique JBProjects NFT, serving as the project's identifier. The address possessing this token has the authority to adjust the project's funding cycles, thereby influencing its financial management. Various values, such as distribution limits, overflow allowances, token minting permissions, funding cycle weights, and project token changes, can be reconfigured by the project owner, introducing both productive and malicious possibilities.

Risk Factors Include:

• Manipulation of treasury funds for productive or malicious purposes.

• Discretionary spending management.

• Token dilution through unauthorized minting.

• Manipulation of token issuance and distribution.

• Alteration of project token strategies.

• Adjustment of treasury functionalities, such as payment pausing and custom extensions.

• Addition or removal of payment terminals.

• Modification of the project controller.

• Fund migration between terminals.

• Risks associated with undistributed reserved rates.

• Price oracle discrepancies impacting price normalization.

Users must assess and mitigate these risks accordingly, ensuring informed participation within the Bunnybox ecosystem. Conducting thorough analysis and exercising caution are paramount to safeguarding investments and mitigating potential vulnerabilities.