Is Kai Finance Safe?
Risk Grade: B- (32/100)
Kai Finance is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — extremely high leverage on a young blockchain creates amplified loss potential with no cross-chain safety net
A leveraged yield farming protocol on Sui that lets you borrow money to multiply your liquidity positions up to 11x. It manages about $40M in deposits. Its C+ grade reflects extreme leverage levels that can wipe out your entire position from a modest price drop, plus total dependence on the Sui ecosystem which suffered a $223M hack in 2025.
TVL
$9M
Mechanisms
6
Interactions
5
Value Grade
D+
Key Risks for Kai Finance Users
At 11x leverage, a 9% price drop wipes out your entire position. Even at 5x, a 20% drop in SUI means total loss of your deposit.
Everything runs on Sui with zero diversification. The Cetus DEX hack ($223M in May 2025) showed how one exploit can shake the whole ecosystem.
Advertised yields of 500-600% APY attract short-term money that will flee at the first sign of trouble, accelerating any crash
Top Risk Factors
- •Leveraged LP positions at up to 11x leverage amplify impermanent loss and liquidation risk — a 30% SUI drop could wipe leveraged positions entirely
- •100% Sui ecosystem concentration means a single chain-level or ecosystem event (like the Cetus $223M hack) affects all positions with no cross-chain diversification
- •Advertised yields of 500-600% APY on leveraged vaults are unsustainable and attract mercenary capital that will exit rapidly during stress
Risk Score Breakdown
Kai Finance's highest risk area is Vitality Risk (5/10). Here's how each dimension contributes to the overall 32/100 score:
Read the Full Kai 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.
View Full Report →Considering an investment?