TokemakMicro-cap

Tokemak receives a C+ risk grade (39/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — loss protection mechanism fails during market crashes when it is needed most, and governance capture is cheap A liquidity management platform that automatically moves your deposits across different exchanges to find the best yields. It manages $39M in deposits with $28M in funding. Its C+ grade reflects the risk that the protocol absorbs trading losses on your behalf -- and that safety net fails exactly when markets crash and you need it most.

The key risks identified for Tokemak are: (1) The protocol promises to absorb your trading losses, but the backup fund (TOKE tokens) drops in value during the same market crashes that cause the losses (2) Token holders vote on where your money goes -- at only $12M in token value, someone could cheaply buy enough votes to redirect your deposits for their own profit (3) The platform is rebranding from Tokemak to Auto Finance with a token swap, adding migration risk and potential for community confusion

Tokemak scores 39/100 across eight risk dimensions: Mechanism Novelty: 9/15, Interaction Severity: 7/20, Oracle Surface: 2/10, Documentation Gaps: 3/10, Track Record: 5/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 6/10. The highest risk area is Mechanism Novelty at 9/15.

Among 68 rated DeFi protocols on Hindenrank, Tokemak ranks #44 by safety (lowest risk score = safest). Its 39/100 risk score and C+ grade place it in the middle tier of DeFi protocols.

Tokemak 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.