Kai Finance
Moderate risk — extremely high leverage on a young blockchain creates amplified loss potential with no cross-chain safety net
Top Risks
1
Leveraged LP positions at up to 11x leverage amplify impermanent loss and liquidation risk — a 30% SUI drop could wipe leveraged positions entirely
2
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
3
Advertised yields of 500-600% APY on leveraged vaults are unsustainable and attract mercenary capital that will exit rapidly during stress
Risk Breakdown
Frequently Asked Questions
Is Kai Finance safe to use?
Kai Finance receives a B- risk grade (32/100) from Hindenrank, where lower scores indicate lower risk. 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.
What are the main risks of using Kai Finance?
The key risks identified for Kai Finance are: (1) 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. (2) Everything runs on Sui with zero diversification. The Cetus DEX hack ($223M in May 2025) showed how one exploit can shake the whole ecosystem. (3) Advertised yields of 500-600% APY attract short-term money that will flee at the first sign of trouble, accelerating any crash
What is Kai Finance's risk score breakdown?
Kai Finance scores 32/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 8/20, Oracle Surface: 3/10, Documentation Gaps: 4/10, Track Record: 5/15, Scale Exposure: 0/10, Regulatory Risk: 4/10, Vitality Risk: 5/10. The highest risk area is Vitality Risk at 5/10.
How does Kai Finance compare to other Yield protocols?
Among 112 rated Yield protocols on Hindenrank, Kai Finance ranks #32 by safety (lowest risk score = safest). Its 32/100 risk score and B- grade place it among the safer Yield protocols.
Has Kai Finance ever been hacked or exploited?
Kai Finance scores 5/15 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.
Last scanned 2026-02-26