Amber Finance

Amber Finance receives a C risk grade (48/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for Amber Finance are: (1) Up to 10x leverage means a small price decline can wipe out your entire position — leveraged lending is inherently high-risk. (2) Bitcoin-Related Tokens are bridged derivatives, not actual BTC — if the bridge is compromised, your collateral could become worthless. (3) The protocol is a fork of Mars Protocol with modifications — fork-specific changes could introduce bugs not covered by original security audits.

Amber Finance scores 48/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 11/20, Oracle Surface: 4/10, Documentation Gaps: 4/10, Track Record: 12/15, Scale Exposure: 0/10, Regulatory Risk: 5/10, Vitality Risk: 6/10. The highest risk area is Track Record at 12/15.

Among 90 rated Lending protocols on Hindenrank, Amber Finance ranks #82 by safety (lowest risk score = safest). Its 48/100 risk score and C grade place it among the riskier Lending protocols.

Amber Finance scores 12/15 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.