Smart Contract Risk

Fira is a blockchain-based protocol and therefore carries inherent smart contract risk. Fira relies on software code deployed as smart contracts. Smart contracts may contain vulnerabilities, bugs, design flaws, or unintended behaviors, whether known or unknown at the time of deployment. Any such issue, whether exploited by third parties or triggered by unforeseen conditions, may result in partial or total loss of funds, including loss, theft, misallocation, inability to withdraw, forced liquidations, or broader disruption of protocol functionality.

Smart contract failures may arise from, among other things: implementation errors, incorrect assumptions about external integrations (tokens, oracles, bridges, DEXs), edge cases under extreme market conditions, permissioning or upgrade mechanisms, governance actions, and interactions with other contracts in the ecosystem. On-chain transactions are irreversible, and losses may be permanent.

Mitigations (Security Measures) — No Guarantee

Fira may implement measures intended to reduce (but not eliminate) smart contract risk, which may include:

• Independent audits. Fira may engage third-party security firms to review contract code and identify vulnerabilities prior to deployment (see Contracts & Audits). Audits are an important control, but do not guarantee that the code is secure or free of defects. Vulnerabilities can remain undiscovered even after multiple audits.

• Operational safeguards. Where supported by the system design, Fira may have the ability to pause, suspend, or restrict certain protocol functions in response to a suspected incident, vulnerability disclosure, or active exploit. Such measures may reduce harm in some situations, but can also lead to service disruption, reduced liquidity, delayed withdrawals, or other adverse user outcomes. Not all components may be pausable, and not all attacks can be stopped in time.

• Incident response and recovery efforts. Fira may investigate security incidents and may attempt recovery actions (e.g., coordinating with ecosystem participants or, where applicable, pursuing legal remedies). Any recovery is uncertain and may be impossible, incomplete, delayed, or dependent on third parties. Users should not assume that losses will be recovered.

Key Limitations and User Acknowledgement

Despite these measures, smart contract risk cannot be eliminated. By using Fira, you acknowledge that:

• you are interacting with experimental and adversarial environments;

• the protocol may fail or behave unexpectedly;

• you may lose some or all of your assets; and

• Fira does not provide insurance or guarantee of safety, availability, or outcomes, unless expressly stated in writing.

This disclosure is for informational purposes only and does not constitute financial, legal, or technical advice.