> For the complete documentation index, see [llms.txt](https://docs.brix.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.brix.money/itry/risks.md). # Risks Like any onchain financial system, iTRY is exposed to several categories of risk. These risks include, but are not limited to, custodial counterparty risk, smart contract risk, and operational risks that may affect the protocol’s ability to function as intended. The sections below outline the primary areas of risk users should be aware of. ## Custodial risk iTRY relies on a regulated 3rd party custodian to hold its backing assets. While these custodians operate under strict compliance and security standards, the protocol is dependent on their operational continuity and performance. Periods of custodial downtime or unavailability may temporarily impact the protocol’s ability to process mint and redeem requests. Although major institutional custodians are engineered for high availability, operational failures, including system outages, misconfigurations, or external incidents, remain possible. Custodians may also face adverse events such as security breaches or internal failures. While iTRY is not aware of any major historical hacks affecting top-tier custodians, such events cannot be ruled out. Insolvency or loss of access to custodied assets would impair the protocol’s ability to honor redemptions and could result in partial or full loss of assets held in custody. Custodial infrastructure reduces many risks present in onchain systems, but it introduces its own set of dependencies. Users should understand that custody providers are critical components of the iTRY system, and adverse events affecting them can impact protocol operations. ## Smart contract risk Smart contract risk refers to potential failures or vulnerabilities in the code that governs iTRY, wiTRY, and related contracts that manage collateral and yield distribution. Like all smart contract–based systems, these risks include but are not limited to software bugs, incorrect logic, misconfigurations, or exploitable attack vectors that could result in financial loss. Smart contracts are a relatively new form of financial infrastructure. Despite security reviews, they remain susceptible to previously unseen attack techniques or newly discovered vulnerabilities. While these risks cannot be fully eliminated, the protocol incorporates several layers of mitigation: * iTRY, wiTRY, and supporting contracts are developed using established development patterns and security standards. * All contracts undergo rigorous internal reviews and have been audited through both private assessments and public audit processes. See [Audits](/resources/audits.md). * The protocol incorporates operational procedures and controls intended to mitigate damage in the event of malicious activity or unexpected behavior. See [Security](/itry/security.md). Even with these safeguards, no smart contract system can guarantee complete immunity from exploits. New attack vectors may emerge as the broader security landscape evolves. ## FX risk iTRY is backed by assets denominated in Turkish Lira (TRY). Although iTRY is pegged to the Turkish lira, foreign investors who evaluate returns in another currency, such as USD, remain exposed to TRY/USD exchange rate movements. High nominal yields do not guarantee positive returns once FX effects are considered. If the Lira depreciates faster than the underlying yield accrues, a user’s USD-denominated return may be flat or negative. Likewise, periods of TRY stability or appreciation can enhance returns. ## Oracle risk iTRY relies on oracles to bring off-chain data, like backing asset prices, onchain. Oracles serve as trusted data sources that inform key protocol logic, especially yield calculation. Oracle-related risks include: * Incorrect or delayed price updates * Data-feed outages * Manipulation attempts in upstream data sources * Misconfiguration or operational failure of oracle infrastructure iTRY currently uses [Redstone](https://www.redstone.finance/) as its oracle provider and may add additional oracle sources in the future to strengthen redundancy and data reliability. While oracles are designed to function securely, they remain a dependency the protocol relies on to ensure accurate economic behavior. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.brix.money/itry/risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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