# Collateral Source: https://docs.40acres.finance/assets ## Supported Assets | Chain | DEX | Collateral | | :-------- | :-------- | :--------- | | Base | Aerodrome | veAERO | | Optimism | Velodrome | veVELO | | Avalanche | Pharaoh | xPHAR | | Avalanche | Blackhole | veBLACK | # Liquidity Source: https://docs.40acres.finance/assets-1 ## Supported Assets | Chain | DEX | Asset | | :-------- | :-------- | :---- | | Base | Aerodrome | USDC | | Optimism | Velodrome | USDC | | Avalanche | Pharaoh | USDC | | Avalanche | Blackhole | USDC | # Borrowing Source: https://docs.40acres.finance/borrowing How to open a self-repaying loan on 40 Acres. ## Opening a Loan Borrowing on 40 Acres requires a single one-time setup: 1. **Connect wallet** and navigate to the Borrow dashboard 2. **Select your asset** from the list of eligible collateral 3. **Choose your borrow amount:** up to your maximum credit line 4. **Confirm the transaction**: USDC arrives in your wallet instantly An **origination fee** is charged at the time the credit line is opened. This is the only upfront cost. ## During Your Loan Once a loan is open, 40 Acres handles everything: * Your collateral votes each epoch via the vote optimizer * Rewards are claimed automatically at epoch flip * X of your rewards are applied toward your loan balance * You can check your remaining debt and projected repayment timeline at any time on the dashboard ### Manual Voting You can override the vote optimizer and vote manually if you choose. Your votes must be placed on pools that 40 Acres supports. Manual voting does not affect repayment — rewards still flow to the protocol for processing. ## Repaying Early You can repay any portion of your loan at any time at zero additional cost. Early repayment directly reduces your balance and shortens your timeline to collateral recovery. Navigate to the Borrow dashboard → select your position → enter the repayment amount → confirm. ## Topping Up Once a loan is open, you can increase your borrowing capacity by adding more collateral to your position — either by depositing additional collateral or, with Portfolio Accounts, by adding other supported revenue-generating assets. Navigate to your active position → Top Up → select additional collateral. ## Closing a Position When your loan balance reaches zero, you will be able to withdraw it from the platform. If you want to close your position before full repayment, you can manually repay the remaining balance and withdraw your collateral immediately. # Contracts Source: https://docs.40acres.finance/contracts All contract addresses are organized by category below. Verify addresses before interacting with any contract. ## Portfolio Manager | Protocol | Address | | --------- | ------------------------------------------ | | Aerodrome | 0x40ac2e40acb7bdd6ec83e468143262fe216529ec | | Velodrome | 0x40ac2e40acb7bdd6ec83e468143262fe216529ec | | Pharaoh | 0x40ac2e40acb7bdd6ec83e468143262fe216529ec | | Blackhole | 0x40ac2e40acb7bdd6ec83e468143262fe216529ec | ## Supply Vaults | Protocol | Name | Address | | --------- | ---------------- | -------------------------------------------- | | Aerodrome | AERO-USDC-Vault | `0xb99b6df96d4d5448cc0a5b3e0ef7896df9507cf5` | | Velodrome | VELO-USDC-Vault | `0x08dcdbf7bade91ccd42cb2a4ea8e5d199d285957` | | Pharaoh | PHAR-USDC-Vault | `0x124D00b1ce4453Ffc5a5F65cE83aF13A7709baC7` | | Blackhole | BLACK-USDC-Vault | `0xC0485C4bafB594Ae1457820fb6e5B67e8A04BCFD` | ## Loan Contracts | Protocol | Name | Address | | --------- | --------------- | -------------------------------------------- | | Aerodrome | AERO USDC Loan | `0x87f18b377e625b62c708d5f6ea96ec193558efd0` | | Aerodrome | AERO Loan | `0x1Dc76341CA156e376736ddbA042aba071bD3b858` | | Velodrome | VELO USDC Loan | `0xf132bD888897254521D13e2c401e109caABa06A7` | | Velodrome | VELO Loan | `0x8C0Ae206A52D3FddE6D43Ea5B5CbbbE00e1C0315` | | Pharaoh | PHAR USDC Loan | `0x6Bf2Fe80D245b06f6900848ec52544FBdE6c8d2C` | | Pharaoh | PHAR Loan | `0xd3E726b681C9a1E2a620cef9fE0EcE49822B11d4` | | Blackhole | BLACK USDC Loan | `0x5122f5154DF20E5F29df53E633cE1ac5b6623558` | | Blackhole | BLACK Loan | `0x5122f5154DF20E5F29df53E633cE1ac5b6623558` | ## Claim Addresses | Protocol | Address | | --------- | -------------------------------------------- | | Aerodrome | `0x8Ac5aa057da4c86f3896cFD851cBcdFC19a04dfe` | | Velodrome | `0x8Ac5aa057da4c86f3896cFD851cBcdFC19a04dfe` | | Pharaoh | `0x8Ac5aa057da4c86f3896cFD851cBcdFC19a04dfe` | | Blackhole | `0x8Ac5aa057da4c86f3896cFD851cBcdFC19a04dfe` | Always verify contract addresses directly before interacting with any smart contract. 40 Acres Finance will never ask you to interact with an unverified contract address. # FAQ Source: https://docs.40acres.finance/faq Common questions about 40 Acres Finance. # Frequently Asked Questions A veNFT is a vote-escrowed NFT issued by DEXes like Aerodrome, Velodrome, Pharaoh, and Blackhole. When you lock a token (e.g., AERO) for a period of time, you receive a veNFT representing your locked position. The veNFT earns weekly epoch rewards, fees , and bribes from the pools it votes on. Depending on the asset type, yes. Currently, veNFT loans are non-liquidating. Updated revenue generating asset liquidation list coming soon. Yes, and no. No interest in the traditional sense. The only costs are an origination fee at loan opening, and then a % of your revenue generated paid to lenders every week. It depends on your assets reward generation relative to your loan size. At current reward rates, most loans repay within several months. You can track your projected repayment timeline in real time on the dashboard. Yes, at any time and at no additional cost. Partial or full early repayment reduces your balance immediately and shortens your timeline to collateral recovery. New loans cannot be opened when vault utilization exceeds 80%. Existing loans are unaffected and continue being repaid normally. As repayments flow in, utilization drops and new loan capacity opens up. Lenders cannot withdraw during full utilization - they must wait for repayments to free up liquidity. 40 Acres currently operates on Base (Aerodrome / veAERO), Optimism (Velodrome / veVELO), and Avalanche (Pharaoh / xPHAR and Blackhole / veBLACK). Additional chains and collateral types coming soon. The vote optimizer is 40 Acres' automated voting system. When you deposit an asset, the optimizer allocates your voting power each epoch to the pools expected to generate the highest rewards. More rewards = faster loan repayment. You can override it with manual votes if you prefer. Portfolio Accounts are a Q2 2026 upgrade that lets you borrow against a basket of collateral: multiple veNFTs, ERC4626 tokens, and other revenue generating assets from a single account. They also introduce cross-chain repayment, customizable reward strategies, and the 40Acres Marketplace. All existing users will be given the choice to migrate once launched. New users will be opted in automatically. Yes. 40 Acres has completed four independent Sherlock audits. Audit reports are publicly available. → \[View Audits]\(/resouces/audits & security) # Fee Structure Source: https://docs.40acres.finance/fee-structure How fees and epoch rewards are distributed on 40 Acres. ## Origination Fee A flat fee is charged when you open a credit line. This is a one-time cost applied at loan origination, and no penalties for early repayment. ## Epoch Reward Split Each epoch, rewards earned by your deposited asset are automatically split as follows: | Recipient | Share | Description | | ------------------------- | ----- | --------------------------------------------------- | | Borrower (loan repayment) | 75% | Applied directly to your outstanding loan balance | | Lenders (vault yield) | 20% | Distributed proportionally to USDC vault depositors | | Protocol treasury | 5% | Supports ongoing development and operations | ## Dynamic Fees (Coming Soon) The current flat 20% lender premium will transition to a **utilization-based dynamic fee model**. Under this system, the lender premium adjusts in real time based on vault utilization: * **Low utilization** → lower lender premium, borrowers keep more rewards * **High utilization** → higher lender premium, attracting new USDC deposits This creates a self-balancing vault. Capital is priced based on actual demand. When liquidity is stressed, the fee structure automatically incentivizes new deposits without any manual intervention. The flat fee model cannot produce this response. Dynamic fees replace static pricing with a market-driven mechanism that benefits both sides of the lending market. ## Zero Balance Fee When a veNFT's loan balance reaches zero and the protocol claims the NFT on your behalf (a "zero balance claim"), a **premium** is applied. This compensates for the gas and infrastructure cost of the automated claim. # Introduction Source: https://docs.40acres.finance/home-page Self-repaying loans backed by revenue generating assets. # 🫏 40 Acres Finance 40acres is a cashflow lending protocol for revenue-generating onchain assets. Deposit eligible collateral and borrow against the rewards it generates. When available, those rewards are applied automatically toward repayment over time. No additional interest. No monthly payments. Automated repayments. Deposit your collateral and access a credit line today. Deposit USDC and earn organic yield from real protocol revenue. Let the Relayer handle claiming, compounding, and repayment. ## Supported Ecosystems | Chain | DEX | Collateral | | --------- | --------- | ---------- | | Base | Aerodrome | veAERO | | Optimism | Velodrome | veVELO | | Avalanche | Pharaoh | xPHAR | | Avalanche | Blackhole | veBLACK | Roadmap: ybBTC, ybETH, and additional ERC4626 yield-bearing assets. ## Security 40 Acres has completed four independent audits with Sherlock. Smart contracts are immutable and non-upgradeable post-deployment. → [View Audits & Security](/security) # How it works Source: https://docs.40acres.finance/how-it-works The mechanics behind self-repaying loans on 40 Acres. ## The Core Mechanic Think of your collateral as a revenue-generating business. Every week, it earns fees and bribes from the DEX it votes on. 40 Acres lets you borrow against that future revenue today, and automatically uses each week's earnings to pay down your debt. The simplest mental model: **your rewards are your repayment schedule**. ## Step by Step Your asset is deposited into a 40acres smart contract and locked as collateral for the duration of the loan, subject to the protocol rules. Your maximum loan amount is calculated based on your assets average weekly rewards multiplied by the epoch multiplier (currently 10 epochs). You receive USDC instantly from the lending vault. Your deposited asset is put to work immediately. The 40 Acres vote optimizer allocates your assets voting power to the highest-yielding pools each epoch. You can also vote manually if you prefer; as long as you vote on supported pools. Each week at epoch flip, rewards flow in and are automatically applied to your loan balance. 75% goes toward repayment. 20% goes to lenders. 5% goes to the protocol treasury. Once the loan is fully repaid, you can withdraw it from 40acres. ## Loan Sizing Your borrow limit is calculated at origination: ```text theme={null} Max Borrow = locked_amount × rewards_rate × epoch_multiplier ``` | Variable | Description | | ------------------ | ------------------------------------------------------------------------- | | `locked_amount` | Size of the asset | | `rewards_rate` | Average weekly rewards per unit of locked token (recalculated each epoch) | | `epoch_multiplier` | Currently 10 — the number of epochs you can borrow against | The epoch multiplier will increase incrementally as the protocol grows and TVL deepens. ## What Happens If Rewards Underperform? If your asset generates less than expected in a given epoch, repayment simply takes longer. The loan remains open and continues being repaid by whatever rewards flow in. Your loan is repaid over time using rewards generated by your collateral, when available. Higher rewards may accelerate repayment, while lower rewards may extend it. ## What Happens If Vault Utilization Is Full? New loans cannot be opened if vault utilization exceeds 80%. This protects lenders from overextension. Existing loans continue normally; repayments flow in and reduce utilization over time, reopening capacity for new borrowers. # Lending Source: https://docs.40acres.finance/lending Deposit USDC and earn organic yield from 40 Acres borrower rewards. # Earn ## How Lending Works 40 Acres uses a peer-to-pool lending model. Lenders deposit USDC into the vault. That USDC is used to fund borrower loans. Each epoch, borrowers' collateral rewards are collected and distributed back to lenders as yield. This is **real yield** sourced from DEX trading fees and bribes, not token emissions. Your return is a function of how well the underlying DEX ecosystem performs, not a protocol subsidy. ## Depositing 1. Navigate to the Earn dashboard 2. Select the vault you want to deposit into (Base, Optimism, or Avalanche) 3. Enter your USDC amount and confirm the transaction 4. You begin earning yield immediately after your deposit is confirmed Vault shares are ERC4626 compliant. Your position is represented by vault tokens redeemable for your pro-rata share of vault assets plus accrued yield. ## Yield Distribution Yield is distributed continuously over the course of each 7-day epoch, based on the previous epoch's voting rewards. As utilization rises and falls, your yield share adjusts accordingly (with dynamic fees enabled). Current APY range: **5–20%** depending on vault utilization and DEX epoch performance. ## Withdrawing You can request a withdrawal at any time from the Earn dashboard. Withdrawals are subject to available liquidity. The protocol maintains an **80% utilization cap**, meaning at least 20% of vault funds must remain available for withdrawals. If a vault is fully utilized, you will need to wait for repayments to free up liquidity before withdrawing. The dashboard shows current available liquidity in real time. Secondary markets are also available in the event you can't wait for liquidity to return. Powered by KyberSwap Limit Orders. → [Sell your vsAERO\_USDC here](https://www.40acres.finance/exit/) # Marketplace Source: https://docs.40acres.finance/marketplace Buy, sell, and bootstrap positions on 40 Acres. sidebar The 40 Acres Marketplace is coming soon alongside Portfolio Accounts. ## Bootstrap Your Position The Marketplace enables you to purchase a veNFT and immediately post it as collateral in the same transaction. No separate steps. No waiting. Your credit line opens the moment your position is created. This is designed for users who want to enter a position from scratch: buy the veNFT, back it with a loan, and let the rewards repay it over time. The full 40 Acres loop in one click. ## Secondary Market for Locked Positions The Marketplace also introduces a secondary market for veNFT positions that are actively backing loans on 40 Acres. Buyers can evaluate an active position, its lock size, remaining debt, reward history, and projected repayment timeline and take it over. This unlocks liquidity for users who want to exit their position before their loan is fully repaid, without requiring manual repayment first. ## Coming Soon Full Marketplace documentation will be available at launch. If you want early access or want to be notified at launch, follow [@40acresfinance](https://x.com/40acresfinance) on X. → [Read the risk disclosure here](/security) # Merge & Increase Source: https://docs.40acres.finance/merge Consolidate assets and add tokens directly to your collateral to boost rewards and accelerate loan repayment. ## Overview The Merge and Increase features let you grow the earning power of your deposited collateral, without opening a new loan. A larger asset generates more weekly epoch rewards, which means your loan repays faster. ## Merge Combine assets in your wallet with the existing collatreral you already have deposited inside 40 Acres. The two become one larger position with a stronger reward output. **When to use this:** * You bought a new asset on a secondary market and want to consolidate it with your existing collateral * You want to simplify your portfolio - one position instead of managing two separately * You want to accelerate loan repayment without depositing more USDC **How it works:** 1. You deposit an asset as collateral in 40 Acres 2. You acquire another asset, and it's sitting in your wallet 3. Go to the customizable panel under your collateral type and click "merge" 4. The wallet asks you to select the asset that you wish to merge into your in-protocol collateral 5. Your collateral is now one larger rev generating asset earning higher rewards Merge only works with assets that are **outside** the 40 Acres protocol. You cannot merge two collaterals that are both already deposited as - one must be in your wallet. *** ## Increase Lock Add native spot tokens directly to your deposited collateral to increase it's weekly epoch rewards. **When to use this:** * You've accumulated governance tokens and want to put them to work * You want to increase your collaterals voting power and reward output * You want to accelerate loan repayment without opening a new position Increase Lock is **not the same as Reinvest**. Reinvest compounds your epoch rewards back into the position automatically. Increase Lock takes tokens you already hold in your wallet and adds them directly to the collaterals balance - it's a manual top-up. **Supported tokens:** | DEX | Chain | Token | | --------- | --------- | ----- | | Aerodrome | Base | AERO | | Velodrome | Optimism | VELO | | Pharaoh | Avalanche | PHAR | | Blackhole | Avalanche | BLAKC | *** No. Merge only works when one asset is in your wallet and one is deposited as collateral. You cannot merge two in-protocol collaterals. Merging increases the size of your collateral, which increases its weekly epoch rewards. This accelerates your loan repayment - it does not change your outstanding loan balance or add new debt. Reinvest automatically takes your earned epoch rewards and compounds them back into the position. Increase Lock is a manual action - you bring tokens from your wallet and add them directly to the collaterals balance. No, it does not change your outstanding loan balance. It increases the value of existing collateral & voting power, which generates higher rewards and speeds up repayment. # Portfolio Accounts Source: https://docs.40acres.finance/portfolio-accounts The next generation of borrowing on 40 Acres: multi-asset, cross-chain, fully automated. # Portfolio Accounts Portfolio Accounts are coming in Q2 2026. All existing users will be automatically migrated. Beta testing has already started. ## Borrow More. Do More. Worry Less. Today, borrowing on 40 Acres means depositing one revenue-generating asset, taking a loan, and letting rewards repay it. Portfolio Accounts remove that ceiling. Your loan is issued against the **total collateral held in your Portfolio Account** - every revenue generating asset, every relayer position, every collateral type you've added means more borrowing power; and it all lives in one place. ## Two Accounts. Two Jobs. Portfolio Accounts introduce a clean separation between your two roles on 40 Acres. ### Borrower Account Your Borrower Account manages everything related to your loan: * Holds all your collateral (veNFTs, ERC4626 tokens, revenue-generating assets) * Tracks your total debt across positions * Processes repayments automatically each epoch * Gives you full control over your repayment strategy; merge locks, increase lock size, top-up, vote optimization or manual vote. ### Relayer Account Your Relayer Account handles reward automation separately: * Claims weekly rewards across all collateral in your Borrower Account * Executes your chosen reward strategy (compound, convert, custom) * Operates independently so your loan and reward strategy never interfere You can have multiple Borrower and Relayer Accounts depending on which vault you're borrowing from. ## What You Can Do with Portfolio Accounts **Bootstrap Borrowing**: Purchase a revenue generating asset with borrowed funds and immediately post it as collateral in the same transaction. Your credit and your collateral grow together, in one click. **Stack positions without chaos**: Run multiple Portfolio Accounts simultaneously, each with its own strategy. An aggressive compounder and a cash-flow account, side by side. **Unlock collateral you couldn't use before**: veNFTs, ERC4626 tokens, ERC20 yield-bearing assets, and eventually LP positions. If it generates revenue, it can back a loan. **Go cross-chain without thinking about it**: Rewards earned on Optimism repay loans on Base. 40 Acres handles the bridging. You just see a smaller balance. ## Custom Reward Strategies Choose how your rewards are deployed each epoch: | Strategy | What It Does | | --------------------- | ----------------------------------------------------------------------------- | | **Compound** | Rewards lock back into more collateral, growing your credit line continuously | | **Cash out** | Rewards convert to your asset of choice and land in your wallet | | **Cross-chain repay** | Rewards from any chain repay debt on any other chain | | **Custom split** | Set your own percentages; any combination of the above | Set it once. The Relayer executes it every epoch. ## Migration When Portfolio Accounts launch, all existing users will be able to migrate on their own time. Active loans, collateral, and positions will carry over seamlessly if they choose to do so. New users will automatically be opted in. No action required. # Relayer Source: https://docs.40acres.finance/relayera Automate your reward management with the 40 Acres Relayer. ## What Is a Relayer? A Relayer is an automation account that handles your weekly reward workflow without you having to touch anything. Every epoch, it claims your rewards, executes your chosen strategy, and keeps your position running. The Relayer is completely separate from your Borrower Account. Your loan management and your reward strategy operate independently; one doesn't interfere with the other. ## Supported Assets | Chain | DEX | Asset | | :-------- | :-------- | :------ | | Base | Aerodrome | veAERO | | Optimism | Velodrome | veVELO | | Avalanche | Pharaoh | xPHAR | | Avalanche | Blackhole | veBLACK | ## What a Relayer Can Do **Reinvest / Compound**: Rewards are automatically converted and locked back into your collateral position. Your lock grows. Your credit line grows. Your borrowing power compounds over time. **Convert to USDC**: Rewards are swapped to the asset of your choice (USDC or otherwise) and sent directly to your wallet each epoch. **Custom Strategy**: Split rewards however you want. Route a portion toward repayment, compound another portion, and take the remainder as USDC. Set the rules once and the Relayer executes them every epoch. **Cross-Chain Repayment**: Rewards earned on one chain can be routed to repay loans on another. Rewards from Velodrome on Optimism can repay a veAERO loan on Base. 40 Acres handles the bridging. ## Relayer Fee Relayer operators charge a fee on rewards processed. This fee compensates the infrastructure that executes your automation on-chain each epoch. ## Setting Up a Relayer 1. Navigate to the Automate section of the dashboard 2. Create or connect a Relayer Account 3. Select your reward strategy (compound, USDC, custom split) 4. Confirm setup - the Relayer begins operating at the next epoch ## Custom Relayers Advanced users can deploy a Custom Relayer contract to implement proprietary reward routing logic. Custom Relayers interact with the 40 Acres reward distribution system via a standard interface. → [Tutorial: How to deposit to relayer](/tutorials) # Risk Disclosure Source: https://docs.40acres.finance/risk-disclosure This Risk Disclosure is provided for informational purposes only to highlight certain risks of using [40acres.Finance](http://40acres.Finance). It supplements, and does not replace, the Terms of Service. In the event of any conflict between this Risk Disclosure and the [Terms of Service](https://www.40acres.finance/terms), the Terms of Service control. **IMPORTANT RISK SUMMARY** The 40acres Finance platform and all related services are experimental technologies provided "AS IS." They may carry significant risks including but not limited to: * Bugs, vulnerabilities, or failures in smart contracts or the underlying blockchain * Partial or total and irreversible loss of digital assets from exploits, cyberattacks, or wallet compromise * Loan repayment is entirely dependent on the continued revenue generation of the underlying DEX protocol issuing your collateral - if that protocol stops generating fees, self-repayment stops * No insurance, guarantee, or compensation is provided by any party associated with this platform * Regulatory, tax, or legal risks may apply depending on your location Do not use this platform unless you fully understand and accept these risks. ## 1. Disclaimer of Warranties The 40acres Finance platform, including the website, application, and all integrated third-party protocols and services, is experimental and is provided "AS IS" and "AS AVAILABLE." The Operator makes no warranty, express or implied, regarding the platform or its use, including: * That the platform or any related software will be free from defects, vulnerabilities, bugs, or security breaches * That the platform will be available without interruption * Any implied warranties of merchantability, fitness for a particular purpose, or non-infringement ## 2. Self-Repayment & Underlying Protocol Risk This is the most important risk specific to 40acres Finance and should be understood before borrowing. **40acres loans are self-repaying, but only if your collateral continues to generate revenue.** When you deposit a revenue generating asset as collateral to 40acres and borrow USDC, your loan is repaid automatically each epoch using the rewards generated by your collateral. This mechanic depends entirely on the underlying protocol that issued your asset (Aerodrome, Velodrome, Pharaoh, Blackhole, etc) continuing to generate trading fees and distribute epoch rewards. If the underlying protocol experiences a decline in trading volume, governance changes, or a catastrophic failure, epoch rewards may decrease significantly or stop entirely. In this scenario, your loan will not self-repay or will repay much more slowly than expected. Your collateral remains locked until the loan is repaid in full. ### **Specific risks to understand:** **Revenue variability**: Epoch rewards are not fixed. They fluctuate weekly based on trading volume, liquidity depth, and voting incentives on the underlying protocol. A sustained period of low rewards will extend your loan repayment timeline significantly. **Protocol failure**: If a protocol that 40acres supports ceases operations, is exploited, or stops distributing rewards, outstanding loans backed by that protocols collateral become effectively un-repayable through the self-repayment mechanism. The vault absorbs the resulting bad debt. This is a real risk - analogous to risks that have materialized in similar DeFi lending protocols. **Voting optimizer dependence**: 40acres uses a vote optimizer to maximize epoch rewards on your behalf. If the optimizer underperforms, votes for low-yielding pools, or experiences a technical failure, rewards - and therefore repayment speed, may be lower than expected. **Loan duration extension**: There is no fixed repayment timeline. If rewards decrease, your loan simply takes longer to repay. Your collateral remains locked for the duration. You should only borrow amounts you are comfortable having outstanding for an extended and uncertain period. ## 3. Smart Contract Risk The 40acres protocol consists of autonomous smart contracts deployed on public blockchain networks. These contracts have been audited by independent security researchers. Audit reports are available on the [Audits & Security](/security) page. However, an audit *does not guarantee* the absence of bugs or vulnerabilities. Smart contracts may contain undiscovered flaws, design errors, or coding mistakes that could result in the partial or total loss of digital assets. Exploits may be discovered at any time, and the operator cannot guarantee the security of funds at rest in the protocol. The User assumes all risk associated with the use of the platform regardless of audit status. ## 4. Third-Party Protocol Risk 40acres Finance integrates directly with external protocols (Aerodrome, Velodrome, Pharaoh, Blackhole, etc) and their underlying smart contract infrastructure. These protocols are developed, operated, and maintained by independent third parties that the operator does not control. Changes to these protocols - including governance decisions, fee structure changes, contract upgrades, or exploits - may materially affect the performance of your collateral and the self-repayment of your loan. The operator is not responsible for the actions, failures, or decisions of any third-party protocol. ## 5. Blockchain Risk **Transaction finality**: All blockchain transactions are final and irreversible. The operator cannot cancel, reverse, or recover any transaction. **Network congestion**: Blockchain networks may experience congestion, delays, or elevated gas costs that affect the claiming of epoch rewards, loan repayments, or other protocol operations. **Multi-chain risk**: 40acres operates across multiple chains (Base, Optimism, Avalanche). Each chain carries its own operational, security, and consensus risks. A failure on one chain does not affect positions on other chains, but each chain's risks are borne independently by the user. **Forks and chain changes**: Underlying blockchain networks may undergo hard forks or protocol-level changes that affect the operation of smart contracts deployed on them. ## 6. Wallet & Custody Risk 40acres Finance is a non-custodial protocol. The operator does not hold, manage, or control your digital assets or wallet credentials. You are solely responsible for safeguarding your private keys, seed phrases, and wallet access. Loss or compromise of wallet credentials may result in the permanent and unrecoverable loss of your assets. No recovery mechanism exists. ## 7. Stablecoin Risk All loans on 40acres Finance are denominated in USDC. A significant de-peg of USDC from its \$1.00 peg would affect both borrowers and vault depositors. The operator does not guarantee the stability of USDC or any other digital asset. ## 8. Market Risk Digital assets are highly volatile. The value of your collateral - and the governance tokens that generate your epoch rewards (AERO, VELO, etc.) - may fluctuate significantly. A decline in the value of these tokens does not trigger liquidation, but may reduce the USD-denominated value of rewards flowing toward loan repayment. Past reward rates are not indicative of future performance. ## 9. Regulatory Risk The legal and regulatory status of DeFi protocols, digital assets, and blockchain technology is uncertain across many jurisdictions and subject to change. Changes in law or regulatory enforcement could restrict or prevent your use of the platform. You are solely responsible for ensuring your use of this platform complies with applicable laws in your jurisdiction. Transactions involving digital assets may trigger tax obligations. The operator does not provide tax advice and is not responsible for your tax compliance. ## 10. No Insurance or Government Backing Digital assets and transactions made through the 40acres Finance platform are not protected by any deposit insurance scheme, government-backed program, or regulatory authority. You may lose some or all of your deposited assets with no recourse. ## 11. Mitigation Measures 40acres Finance has implemented the following risk mitigation measures: * Smart contracts audited by independenta security researchers ([view audits](/security)) * 80% vault utilization cap - no new loans can originate if the vault exceeds 80% utilization, protecting depositors from over-extension * Multi-DEX and multi-chain diversification to reduce concentration risk * Non-liquidating loan structure to prevent forced asset sales These measures reduce but do not eliminate risk. The User assumes all risk of loss regardless of their implementation. *This disclosure does not constitute financial, legal, or professional advice. Conduct your own due diligence before using this platform.* # Audits & Security Source: https://docs.40acres.finance/security 40 Acres smart contract security reviews and deployed addresses. ## Sherlock Audits 40 Acres has completed four independent security reviews with Sherlock, one of DeFi's leading audit platforms. | Audit | Report | | ------------------------------- | ------------------------------------------------------------------------------------- | | Sherlock Audit #4 (Most Recent) | [View Report](https://drive.google.com/file/d/1c68Rah-fQzLzaESx7qX_Lbk9ecZ6fHWM/view) | | Sherlock Audit #3 | [View Report](https://drive.google.com/file/d/1u9A628xAWbkZwC38iR2HW-CtRVPfpbPr/view) | | Sherlock Audit #2 | [View Report](https://drive.google.com/file/d/1Vi7osCQmVKXENdyly670g-837ms7L6cv/view) | | Sherlock Audit #1 | [View Report](https://drive.google.com/file/d/1JnTDL9HknriukWSs8sZPSlOGfh6_rFY6/view) | Lead auditors: [eeyore](https://audits.sherlock.xyz/watson/eeyore), [0xadrii](https://audits.sherlock.xyz/watson/0xadrii), [oot2k](https://audits.sherlock.xyz/watson/oot2k) ## Deployed Contracts ### Base | Contract | Address | | -------- | ---------------------------------------------------------------------------------------------------------------------- | | Loan | [0x87f18b377e625b62c708D5f6EA96EC193558EFD0](https://basescan.org/address/0x87f18b377e625b62c708D5f6EA96EC193558EFD0) | | Vault | [0xB99B6dF96d4d5448cC0a5B3e0ef7896df9507Cf5](https://basescan.org/address/0xB99B6dDF96d4d5448cC0a5B3e0ef7896df9507Cf5) | ### Optimism | Contract | Address | | -------- | -------------------------------------------------------------------------------------------------------------------------------- | | Loan | [0xf132bD888897254521D13e2c401e109caABa06A7](https://optimistic.etherscan.io/address/0xf132bD888897254521D13e2c401e109caABa06A7) | | Vault | [0x08dCDBf7baDe91Ccd42CB2a4EA8e5D199d285957](https://optimistic.etherscan.io/address/0x08dCDBf7baDe91Ccd42CB2a4EA8e5D199d285957) | ### Avalanche (Pharaoh) | Contract | Address | | ----------------- | --------------------------------------------------------------------------------------------------------------------- | | Loan | [0x6Bf2Fe80D245b06f6900848ec52544FBdE6c8d2C](https://snowscan.xyz/address/0x6Bf2Fe80D245b06f6900848ec52544FBdE6c8d2C) | | Vault | [0x124D00b1ce4453Ffc5a5F65cE83aF13A7709baC7](https://snowtrace.io/address/0x124D00b1ce4453Ffc5a5F65cE83aF13A7709baC7) | | Portfolio Factory | [0x52d43C377e498980135C8F2E858f120A18Ea96C2](https://snowtrace.io/address/0x52d43C377e498980135C8F2E858f120A18Ea96C2) | ### Avalanche (Blackhole) | Contract | Address | | -------- | --------------------------------------------------------------------------------------------------------------------- | | Loan | [0x5122f5154DF20E5F29df53E633cE1ac5b6623558](https://snowtrace.io/address/0x5122f5154DF20E5F29df53E633cE1ac5b6623558) | | Vault | [0xC0485C4bafB594Ae1457820fb6e5B67e8A04BCFD](https://snowtrace.io/address/0xC0485C4bafB594Ae1457820fb6e5B67e8A04BCFD) | # Treasury Source: https://docs.40acres.finance/treasury Protocol fees are managed through a multi-sig wallet across all supported chains. The multi-sig ensures no single party can unilaterally move treasury funds. `0xfF16fd3D147220E6CC002a8e4a1f942ac41DBD23` View on DeBank → # Tutorials Source: https://docs.40acres.finance/tutorials **Tutorial: How to set an NFT as Delegate for faster repayment**