MKR Risk

MAKER (MKR)
‍
DESCRIPTION

Maker (MKR) is a decentralized autonomous organization (DAO) and cryptocurrency built on the Ethereum blockchain. Founded in 2015, MakerDAO aims to provide a decentralized platform for creating and governing the Dai stablecoin, which is pegged to the value of the US dollar. The Maker protocol operates through smart contracts, allowing users to generate Dai by collateralizing assets such as Ethereum (ETH) and other ERC-20 tokens.One of the unique features of MakerDAO is its decentralized governance model. MKR token holders have voting rights in the MakerDAO ecosystem, allowing them to participate in key decisions such as adjusting collateralization ratios, adding new collateral types, and modifying governance parameters. MKR holders also act as a backstop for the stability of the Dai stablecoin, with MKR tokens being burned to stabilize Dai in case of under-collateralization.MKR is a governance and utility token within the MakerDAO ecosystem. In addition to voting rights, MKR holders also receive fees generated by the Maker protocol, including stability fees paid by users who generate Dai loans.

Maker (MKR) Whitepaper: https://makerdao.com/en/whitepaper/
‍
RISKS OF MKR

Investing in Maker (MKR) and participating in the MakerDAO ecosystem comes with various risks, including but not limited to:(i) Volatility risk and liquidity risk(ii) Regulatory risk(iii) Security risk(iv) Market risk(v) Smart contract risk(vi) Governance risk(vii) Technological riskFor additional information on risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be a complete overview of all such risks, and there may be other risks associated with exposure to MKR. We encourage all users to perform their own due diligence to assess the risks associated with MKR and to determine whether this level of risk is acceptable to them. Neither MKR nor Satstreet guarantees the value of MKR, and holders of MKR will not have any recourse to MKR or Satstreet if the value of MKR declines for any reason whatsoever.

SATSTREET EVALUATION OF MKR

Satstreet Inc. has reviewed and assessed MKR prior to making it available through our services and has concluded that MKR is not a security or derivative under Canadian securities legislation. However, there is a risk that this conclusion could change in the future, and Satstreet will monitor regulatory developments accordingly.Additionally, no Canadian securities regulatory authority has expressed an opinion about MKR, including whether it is a security or derivative. Satstreet has reviewed MKR, including its creation, governance, usage, and design, as well as its supply, demand, utility, and liquidity. We have also evaluated material technical risks associated with MKR, such as smart contract vulnerabilities, and legal and regulatory risks, including any pending or potential regulatory actions.

Last Updated: Mar 2024

Risk Statements

Interested in learning more?