Protocol shutdown complete — Alpaca Finance ceased all operations December 31, 2025 following Binance ALPACA delisting. No active user exposure.
Top Risks
1
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.
2
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yield farming up to 6x amplifies liquidation cascade risk during market downturns on BNB Chain — historical exposure, no longer active but reflects mechanism risk if contracts were still in use.
3
Under-collateralized lending model for leveraged positions creates systemic bad debt risk if liquidation bots fail during volatile markets.
Risk Breakdown
Frequently Asked Questions
Is Alpaca Finance safe to use?
Alpaca Finance receives a C- risk grade (53/100) from Hindenrank, where lower scores indicate lower risk. 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.
What are the main risks of using Alpaca Finance?
The key risks identified for Alpaca Finance are: (1) The platform announced shutdown after Binance delisted the token. Remaining deposits face heightened risk from reduced team support and infrastructure maintenance. (2) Farming with up to 6x leverage means a 17% price drop can wipe out your entire position. During market crashes, many positions liquidate simultaneously. (3) If the liquidation bots stop working after the team winds down, underwater positions create bad debt that is socialized across lenders.
What is Alpaca Finance's risk score breakdown?
Alpaca Finance scores 53/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 15/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 15/15, Scale Exposure: 0/10, Regulatory Risk: 4/10, Vitality Risk: 10/10. The highest risk area is Track Record at 15/15.
How does Alpaca Finance compare to other Yield protocols?
Among 112 rated Yield protocols on Hindenrank, Alpaca Finance ranks #109 by safety (lowest risk score = safest). Its 53/100 risk score and C- grade place it among the riskier Yield protocols.
Has Alpaca Finance ever been hacked or exploited?
Alpaca Finance scores 15/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.