Is Amber Finance Safe?
Risk Grade: C (44/100)
Amber Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Amber Finance offers compelling Bitcoin leverage opportunities on Cosmos, but the combination of extreme leverage, BRT bridge dependency, and fork-specific code changes creates a risk profile significantly higher than standard lending protocols. Only suitable for users who fully understand leveraged trading risks and BRT bridge dependencies.
Amber Finance is a Bitcoin-focused lending protocol on Neutron (Cosmos ecosystem) that enables users to deposit, borrow, and leverage Bitcoin-Related Tokens (BRTs) like wrapped BTC and BTC derivatives. Built on a hardened fork of Mars Protocol's battle-tested Red Bank lending contracts, Amber offers pre-configured looping strategies that allow up to 10x leverage on BRT positions. The protocol features LTV ratios up to 90%, credit-account architecture for position safety, and real-time position analytics. It targets Bitcoin holders seeking yield through leverage strategies in the Cosmos DeFi ecosystem.
TVL
$23M
Mechanisms
6
Interactions
4
Value Grade
D-
Key Risks for Amber Finance Users
Up to 10x leverage means a small price decline can wipe out your entire position — leveraged lending is inherently high-risk.
Bitcoin-Related Tokens are bridged derivatives, not actual BTC — if the bridge is compromised, your collateral could become worthless.
The protocol is a fork of Mars Protocol with modifications — fork-specific changes could introduce bugs not covered by original security audits.
Top Risk Factors
- •Up to 10x leverage via repeated deposit-borrow 'looping' on Bitcoin-Related Tokens creates extreme liquidation cascade risk — a 10% BRT price decline could wipe out fully leveraged positions.
- •Bitcoin-Related Tokens (BRTs) on Neutron are wrapped or bridged BTC derivatives with their own depeg risks — the lending protocol inherits bridge, wrapping, and custody risk from every supported BRT.
- •As a fork of Mars Protocol adapted for BRT-specific use, any modifications to the original codebase could introduce vulnerabilities not covered by Mars Protocol's existing audits.
Risk Score Breakdown
Amber Finance's highest risk area is Interaction Severity (11/20). Here's how each dimension contributes to the overall 44/100 score:
Read the Full Amber Finance Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?