Moderate risk — proven concentrated liquidity management across multiple chains, but automated strategies can underperform during volatile markets and single-token deposits mask underlying LP exposure.
Top Risks
1
Automated rebalancing algorithms manage concentrated liquidity positions; poorly tuned strategies or edge-case market conditions can cause significant impermanent loss for depositors
2
Multi-chain deployment across 10+ networks (Base, Hedera, Binance) increases smart contract surface area and introduces chain-specific risks
3
Single-token deposit vaults obscure the actual concentrated liquidity exposure, potentially misleading users about their risk profile
4
Vault strategies are algorithmically managed without individual user control; strategy errors affect all vault depositors simultaneously
Risk Breakdown
Frequently Asked Questions
Is ICHI safe to use?
ICHI receives a B- risk grade (31/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — proven concentrated liquidity management across multiple chains, but automated strategies can underperform during volatile markets and single-token deposits mask underlying LP exposure. ICHI is a liquidity management protocol that lets you deposit a single token into automated vaults that manage concentrated liquidity positions on Uniswap V3 and 15+ other AMMs across 10+ blockchains. With $18M in TVL, ICHI simplifies the complexity of concentrated liquidity provision by handling rebalancing and fee collection automatically.
What are the main risks of using ICHI?
The key risks identified for ICHI are: (1) Hidden impermanent loss: You deposit one token, but the vault creates a two-sided liquidity position. If the paired token moves significantly in price, you can lose value even though you only deposited one asset. (2) Automated strategy risk: The vault rebalancing algorithm decides when and how to adjust your position. During volatile markets, these algorithms can make suboptimal decisions that result in losses for all depositors. (3) Multi-chain surface area: ICHI operates across many blockchains, each with different security properties. A bug in the vault code could potentially be exploited on multiple chains simultaneously.
What is ICHI's risk score breakdown?
ICHI scores 31/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 5/20, Oracle Surface: 2/10, Documentation Gaps: 2/10, Track Record: 6/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 8/10. The highest risk area is Vitality Risk at 8/10.
How does ICHI compare to other DeFi protocols?
Among 68 rated DeFi protocols on Hindenrank, ICHI ranks #21 by safety (lowest risk score = safest). Its 31/100 risk score and B- grade place it among the safer DeFi protocols.
Has ICHI ever been hacked or exploited?
ICHI scores 6/15 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.