Is Alpaca Finance Safe?
Risk Grade: C- (53/100)
Alpaca Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Protocol shutdown complete — Alpaca Finance ceased all operations December 31, 2025 following Binance ALPACA delisting. No active user exposure.
Alpaca Finance was a leveraged yield farming platform on BNB Chain that allowed up to 6x leverage. It completed a full shutdown by December 31, 2025 after Binance delisted the ALPACA token in April 2025. All positions were auto-closed by June 30, 2025. The protocol is no longer operational.
TVL
$0
Mechanisms
7
Interactions
5
Value Grade
D
Key Risks for Alpaca Finance Users
The platform announced shutdown after Binance delisted the token. Remaining deposits face heightened risk from reduced team support and infrastructure maintenance.
Farming with up to 6x leverage means a 17% price drop can wipe out your entire position. During market crashes, many positions liquidate simultaneously.
If the liquidation bots stop working after the team winds down, underwater positions create bad debt that is socialized across lenders.
Top Risk Factors
- •Alpaca Finance completed full shutdown by December 31, 2025 following Binance ALPACA delisting in April 2025. All leveraged positions were auto-closed by June 30, 2025; front-end access ended December 31, 2025. The protocol is no longer operational — any remaining on-chain interactions occur on unmaintained contracts with no team support.
- •Leveraged yield farming up to 6x amplifies liquidation cascade risk during market downturns on BNB Chain — historical exposure, no longer active but reflects mechanism risk if contracts were still in use.
- •Under-collateralized lending model for leveraged positions creates systemic bad debt risk if liquidation bots fail during volatile markets.
Risk Score Breakdown
Alpaca Finance's highest risk area is Track Record (15/15). Here's how each dimension contributes to the overall 53/100 score:
Read the Full Alpaca Finance Risk Report
This protocol has 2 collapse scenarios. 1 critical and 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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