Is Extra Finance Safe?

|Yield
C+

Risk Grade: C+ (39/100)

Extra Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.

Moderate risk — high leverage amplifies every risk by up to 7x, making small price moves potentially devastating

A leveraged yield farming protocol where you can borrow up to 7x your deposit to amplify farming returns. It manages $130M in deposits with no disclosed funding. Its C+ grade reflects the extreme liquidation risk at high leverage and the amplified losses from price swings.

TVL

$29M

Mechanisms

7

Interactions

6

Value Grade

C

Key Risks for Extra Finance Users

1.

At 7x leverage, a price move of just 2.5% against you triggers liquidation and you lose your entire deposit. Most users do not realize how thin the margin is

2.

Price feeds can be manipulated on low-volume trading pairs, letting attackers either force your liquidation at fake prices or borrow against inflated collateral

3.

Losses from providing liquidity to two-token pools are multiplied by your leverage. A 10% price swing at 7x can wipe out your position entirely

Top Risk Factors

  • Up to 7x leverage on yield farming positions means a ~2.5% adverse price move can trigger liquidation, with partial liquidation (30%) potentially insufficient during rapid crashes
  • Dual oracle system (TWAP + Chainlink) provides some protection but TWAP manipulation remains viable on low-liquidity farming pairs
  • Impermanent loss is amplified by leverage factor — at 7x, standard IL becomes catastrophic during sustained directional price moves

Risk Score Breakdown

Extra Finance's highest risk area is Vitality Risk (9/10). Here's how each dimension contributes to the overall 39/100 score:

Mechanism Novelty3/15
Interaction Severity10/20
Oracle Surface5/10
Documentation Gaps3/10
Track Record4/15
Scale Exposure3/10
Regulatory Risk2/10
Vitality Risk9/10

Read the Full Extra Finance Risk Report

This protocol has 3 collapse scenarios. 4 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.