How We Secure Your Funds

Overcollateralization, smart contract audits, and non-custodial architecture.

Security is not a feature. It's the foundation. unflat is built around multiple layers of protection to safeguard your deposit.

Layer 1: Overcollateralized lending

Every loan in the Morpho markets that unflat uses is overcollateralized. Borrowers must lock up assets worth significantly more than they borrow.

How it works:

1. A borrower wants to borrow $10,000 in USDC

2. They must lock up, say, $15,000 worth of ETH as collateral

3. If ETH's price drops and the collateral falls below a safety threshold, the smart contract automatically sells the collateral to repay lenders

4. The borrower absorbs the loss, not you

This liquidation mechanism is enforced by code, not by a human decision. It runs 24/7, automatically, without exception.

Layer 2: Smart contract audits

The smart contracts underlying Morpho Protocol have been audited by leading security firms. These audits check for:

• Vulnerabilities and potential attack vectors

• Logic errors in the code

• Edge cases that could be exploited

• Access control and permission issues

Morpho has managed over $5B in assets with zero security exploits to date.

Layer 3: Non-custodial design

unflat is non-custodial. This means:

• You retain ownership of your wallet and your funds

• unflat never holds your assets in its own accounts

• Your deposit goes directly into the protocol from your wallet

• You can verify your position on-chain at any time

No one at unflat can move your funds. The protocol enforces the rules, not a person.

Layer 4: On-chain transparency

Every transaction is recorded on the blockchain and can be independently verified. You don't need to take our word for it.

As we like to say: "Please don't trust us. Verify what we're telling you."

You can check:

• Where your funds are allocated

• How much interest you've earned

• The collateralization ratio of the lending pools

• The full history of transactions

Important. unflat is not a bank. Your deposits are not covered by the European Deposit Insurance Scheme (€100,000 guarantee). Despite the security layers described above, DeFi carries inherent risks. Never deposit money you cannot afford to lose. Read the Risks and Considerations section carefully.