Terms of Use
Version: 01/13/2026
Interface Operator: Usual Labs (the “Fira Interface Operator”)
Contact: [email protected]
Risks & Security: Risks & Mitigations section
1. Purpose – acceptance
1.1. These Terms of Use (the “Terms”) govern access to and use of (i) the website, (ii) the front‑end application and/or APIs, and (iii) the content/documentation made available (together, the “Services”).
1.2. By clicking “Accept”, connecting a wallet, or using the Services, you acknowledge that you have read, understood, and accepted these Terms and the Risks & Security documentation (/risks), which is incorporated by reference.
1.3. If you do not agree, do not use the Services.
2. Definitions
Fira Protocol: the set of smart contracts deployed on one or more public blockchains enabling lending/borrowing operations.
Fira Interface: the front‑end and/or API that allows you to submit transactions to the Protocol.
USDC: a third‑party stablecoin (issued and administered by a third party).
Fira Token included all
FW: the wrapped form used by Fira as the unit of account),
BT: synthetic tokens associated with borrowing, designed to converge to 1 FW at maturity.
CT: tokens representing an economic claim on the “interest/coupon” component arising from the pool structure.
Maturity: the pool/market expiry at which certain conversions/redemptions may apply.
User / You: any person accessing or using the Services.
Wallet: a self‑custodial wallet (EOA or smart wallet) controlled by you.
3. Services description – scope
3.1. The Services primarily provide (a) an interface to read information and (b) a way to submit transactions to the Protocol through your Wallet.
3.2. Non‑custodial: you retain control of your private keys and Wallet at all times. The Fira Interface Operator does not hold your assets, cannot initiate transactions on your behalf, and cannot reverse a transaction confirmed on a blockchain.
3.3. Protocol ≠ Operator: unless expressly stated, the Fira Interface Operator does not guarantee the continuous operation of any blockchain network, oracle, bridge, third‑party token, or the availability of any smart contract.
3.4. Information displayed (rates, prices, APY, health metrics, etc.) is indicative and may be delayed, inaccurate, or incomplete.
4. Nature of information – no advice
4.1. Nothing in the Services constitutes financial, investment, credit, legal, tax, or accounting advice, nor any personalized recommendation.
4.2. You are solely responsible for your decisions and your own risk assessment, including whether the Protocol is appropriate for you.
4.3. You acknowledge that crypto‑assets and DeFi involve volatility and risks that may not be suitable for all users.
5. Eligibility – sanctions – restricted jurisdictions
5.1. You represent that you are of legal age and have the legal capacity to use the Services.
5.2. You represent that you are not (i) located, resident, incorporated, or acting on behalf of a person located in a Restricted Jurisdiction, and (ii) not subject to sanctions (OFAC, EU, UN, UK, etc.), and not listed on any sanctions list. Restricted juridiction list: Afghanistan, Albania, Angola, Azerbaijan, Bosnia Herzegovina, Bahamas, Barbados, Burma, Botswana, Burkina Faso, Burundi, Cambodia, Cameroon, Crimea (Ukraine), Chad, China, Congo, Democratic Republic of Congo, Cuba, Ethiopia, Eritrea, Fiji, Palau, Ghana, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Jamaica, Jordan, Lao People's Democratic Republic, Uganda, Liberia, Libya, Madagascar, Mali, Malta, Morocco, Mozambique, Nicaragua, Nigeria, North Korea, Pakistan, Panama, Philippines, Puerto Rico, Russia, Senegal, Somalia, Sri Lanka, Sudan, Syria, Tajikistan, Trinidad and Tobago, Turkey, Turkmenistan, United States, Uzbekistan, Vanuatu, Venezuela, Virgin Islands, Yemen, Zimbabwe and any resident or national of a country otherwise subject to a U.S. Government embargo, or that has been designated by the U.S. Government as a terrorist-supporting country, and (ii) are not listed on any U.S. Government list of prohibited or restricted parties.
5.3. Any attempt to circumvent restrictions (VPN, proxy, etc.) may result in restriction or suspension of access.
5.4. You are solely responsible for verifying that your access and use complies with applicable laws and regulations.
6. Economic mechanics (key reminders)
6.1. Wrapping: Fira V1 uses USDC and operates with FW‑USDC (wrap/unwrap) for certain operations.
6.2. Borrowing: borrowing may involve minting BT‑USDC against collateral and swapping BT‑USDC→FW‑USDC at a discount. The economic cost is embedded in that discount.
6.3. Fixed‑maturity “fixed rate”: predictability is designed for holding until maturity; early repayment may change the effective cost.
6.4. CT‑USDC: CT‑USDC may exist/be tradable and reflects an economic coupon component, potentially including redistribution linked to reserve/rehypothecation mechanisms.
7. Fees
7.1. Network fees: you pay blockchain transaction fees (gas), which are non‑refundable.
7.2. Protocol/third‑party fees: certain markets may include fees (swaps, liquidations, performance/management, bridges, etc.) set on‑chain or by third parties.
7.3. Any displayed fees/rates are indicative; you must verify details before signing.
8. Assumption of risk
8.1. By using the Services, you acknowledge and accept the risks described in Risks & Security.
8.2. This documentation is not exhaustive; other known or unknown risks may exist.
9. User obligations
9.1. Secure your private keys/seed phrase, devices, access, and approvals.
9.2. Verify smart contract addresses, networks, tokens, amounts, and recipients before signing.
9.3. Do not use the Services for illegal activity (money laundering, terrorist financing, fraud, etc.).
9.4. Do not attempt to attack, exploit, reverse engineer, or interfere with the Services/contracts.
10. Third‑party services – dependencies
10.1. The Services may rely on third parties (RPCs, oracles, bridges, analytics, wallets, DEXs, protocols used for rehypothecation, etc.).
10.2. Such third parties have their own terms and may fail, be compromised, or change rules. The Fira Interface Operator is not responsible for them.
11. Intellectual property – license
11.1. Unless otherwise indicated, the Interface content is protected (branding, UI, text, etc.).
11.2. A limited, revocable, non‑exclusive license is granted to you to use the Services in compliance with these Terms.
11.3. Smart contracts may be open‑source under specific licenses.
12. Disclaimer of warranties
12.1. The Services are provided “as is” and “as available.”
12.2. No warranties are given regarding error‑free operation, uptime, security, performance, solvency, liquidity, or returns.
13. Limitation of liability
13.1. To the maximum extent permitted by law, the Fira Interface Operator will not be liable for indirect damages (loss of profit, data, opportunity, etc.).
14. Indemnification
You agree to indemnify and hold harmless the Fira Interface Operator from any claim arising out of (i) your breach of these Terms, (ii) your illegal use of the Services, or (iii) your violation of applicable law.
15. Suspension – termination
15.1. You may stop using the Services at any time.
15.2. The Fira Interface Operator may suspend/restrict access (including for sanctions compliance, illegal activity, security risk, or legal obligations).
16. Governing law – dispute resolution
16.1. Governing law: France
16.2. Jurisdiction/Arbitration: France
3) Fira “Risks & Security” Documentation
0. Executive summary
Fira is a DeFi protocol enabling variable‑rate lending/borrowing and a form of fixed‑maturity fixed‑rate borrowing via an architecture based on (i) FW wrapping, (ii) BT (Bond Tokens) and (iii) CT (Coupon Tokens), and an AMM/pool mechanism for rate discovery. The design includes mechanisms that may involve flash loans and partial rehypothecation of reserves into a variable‑rate vault, whose interest may be distributed to CT holders prior to maturity.
As a result, Fira must be considered a high‑risk product. You may lose all or part of your funds.
1. Security principles (framework)
1.1 What Fira does (and does not) do
Fira is not a custodian: you control your keys.
Transactions are executed by smart contracts: no chargebacks, no reversals.
Interfaces (front‑end/RPC) may fail; the Protocol may still operate on‑chain.
2. Smart contract & implementation risks
Risk: vulnerabilities, logic bugs, decimal handling errors, excessive permissions, unintended interactions between contracts.
Impact: partial/total loss, inability to withdraw, wrongful liquidations, dilution/mispricing of BT/CT, etc.
Fira‑specific risk factors:
Multiple tokens (FW, BT, CT) with conversions/mint/burn flows.
Flash‑loan‑based flows to enable CT trading.
Rehypothecation (allocation into a variable vault) increases attack surface.
Protocol mitigations: audits, fuzz/mutation tests, formal verification on critical invariants (maturity convergence, value conservation, reserve bounds), limited admin privileges, timelocks, circuit breakers.
User mitigations: limit approvals, use a hardware wallet, verify official addresses, start with small amounts.
3. Market risk & economic model risk (AMM / fixed‑maturity rates)
Risk: the “fixed rate” is driven by a discount and AMM price discovery, therefore exposed to supply/demand and liquidity conditions.
Key Fira points:
BT is designed to converge to 1 FW at maturity, but can fluctuate before maturity.
Early repayment can lead to a different effective cost (so not truly “fixed” unless held to maturity).
Impact: slippage, higher‑than‑expected effective borrowing cost, losses for LPs/CT holders under adverse pricing, UX issues.
User mitigations:
Understand “fixed at maturity” vs “variable before maturity.”
Assess pool liquidity (depth/spreads) before entering/exiting.
Avoid trade sizes that significantly move the price.
4. Liquidation risks (borrowers)
Risk: your collateral may be liquidated if safety metrics deteriorate (collateral drops, debt dynamics, volatility, oracle issues).
Fira‑specific: liquidation can occur upon threshold breach and automatic liquidation may be triggered after maturity if not repaid.
Impact: partial/total collateral loss, penalties, execution at unfavorable prices.
User mitigations:
Maintain a safety buffer (collateral well above minimum).
Monitor collateral metrics and maturities.
Plan for gas/time to repay before maturity (congestion risk).
5. Collateral & token “counterparty” risks
Even “blue‑chip” assets can carry risks:
High volatility → rapid liquidations.
Token admin risks (blacklist/freeze, pausing, upgrades).
Concentration/whales → price shocks/manipulation.
Mitigation: diversify, prefer the most liquid collateral, understand token admin powers.
6. Stablecoin (USDC) & wrapping (FW‑USDC) risks
USDC risk: de‑peg events, freezing/blacklisting, issuer banking/regulatory risk, redemption disruptions.
FW risk: wrapping adds an additional contract and therefore additional risk (bug, faulty conversion, pauses).
Impact: inability to unwrap/rewrap, discounts, value loss, liquidity loss.
User mitigations: treat “stable” as not guaranteed, limit exposure, monitor issuer communications.
7. Oracle risks
Fira relies on price inputs (collateral, and potentially other parameters). No oracle is immune to manipulation, latency, outages, or misconfiguration.
Impact: wrongful liquidations, bad debt, lender/LP losses.
Protocol mitigations: robust oracle selection, redundancy, thresholds, delays, sanity checks, liquid collateral sets.
User mitigations: avoid positions near liquidation thresholds; account for volatility windows.
8. Liquidity risks (lenders / LPs / CT holders)
Risk: you may be unable to exit at the expected price, or temporarily unable to exit, due to insufficient pool liquidity.
Fira points:
LPs provide FW‑USDC and receive BT‑USDC + CT‑USDC depending on pool composition (structural exposure).
CT‑USDC may be illiquid or priced unfavorably outside normal conditions.
Mitigation: prefer deeper markets, size trades prudently, understand exit mechanics.
9. Rehypothecation risks (reserves → variable‑rate vault)
Risk: part of liquidity reserves may be allocated into an internal variable‑rate vault, and interest generated may be distributed to CT‑USDC holders before maturity.
Potential impacts:
Losses in the variable vault (bug/exploit/market risk) reducing reserves.
Withdrawal delays causing liquidity shortfalls when exits are needed.
Lower‑than‑expected or zero yield.
Protocol mitigations: conservative parameters (ϕtarget, bounds), limited strategies, battle‑tested vaults, exposure limits, priority withdrawals, transparent on‑chain allocations.
User mitigations: treat rehypothecation yield as non‑guaranteed and understand it adds “strategy risk.”
10. MEV / front‑running / sandwich risks
Risk: on public networks, transactions can be observed and exploited, especially swaps (BT↔FW, CT trades) and liquidations.
Impact: worse execution, higher slippage, increased costs.
Mitigation: MEV protection where available, limit slippage tolerance, use private RPC, split transactions.
11. Network / bridge / infrastructure risks
Congestion, downtime, reorgs, forks, censorship → failed/delayed transactions.
If multi‑chain, bridges add major risks (hacks, pauses, bridged‑asset de‑pegs).
Mitigation: use robust networks, avoid urgent actions during congestion, anticipate maturities.
12. Governance & parameter risks
Risk: key parameters may be changed via governance/DAO (collaterals, LTV/LLTV, AMM parameters, reserve strategies, etc.).
Impact: risk profile changes, liquidations, yield changes, migrations.
Mitigation (protocol): transparency, timelocks, communications, guardrails, limits.
Mitigation (user): follow governance/announcements; avoid long‑duration exposure without monitoring.
13. Legal, regulatory & tax risks
Risk: DeFi legal frameworks evolve (geo restrictions, sanctions, compliance obligations).
Tax risk: actions may create taxable events (swaps, interest/coupons, PnL).
Mitigation: consult local professionals, keep transaction records, comply with sanctions/embargoes.
14. User security checklist (bottom of page)
Verify the official URL and network.
Verify contract addresses on a block explorer.
Use a hardware wallet.
Limit approvals and revoke periodically.
Start with small amounts.
Do not use funds you cannot afford to lose.
Monitor collateral/health metrics and maturity dates.
Anticipate gas costs and congestion.
Understand “fixed at maturity” vs “variable before maturity.”
Read /risks and /terms before any action.
Final note (include as‑is)
This documentation is provided for informational purposes, is not exhaustive, and does not constitute advice. Use of Fira is at your own risk.
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