# Welcome to Honey Borrow and lend with your NFTs ## What is Honey ? Honey Finance is a lending and borrowing protocol for long tail assets, allowing instant liquidity for derivatives, NFTs, and real world assets. {% hint style="info" %} **Learn more** * [Honey protocol](/lending-protocol/nfts) * [Honey P2P](/honey-p2p/overview) * [$HONEY tokenomics](/tokenomics/honey) {% endhint %} {% embed url="" %} {% tabs %} {% tab title="I want liquidity for my NFTs" %} Borrowing on Honey Finance provides instant liquidity for NFTs. * [Borrowing](/lending-protocol/borrowing) * [FAQ](/faq/faq/lending-and-borrowing-faq) * [Try now](https://beta.honey.finance) {% endtab %} {% tab title="I want to earn higher yields" %} Lenders can obtain high interest rates by having exposure to NFTs, due to illiquidity. * [Lending](/lending-protocol/lending) * [Risks](/lending-protocol/risk) * [Try now](https://beta.honey.finance) {% endtab %} {% tab title="I want to earn fees" %} Eearn fees by creating your own market on Honey. Allow lenders and borrowers to interact in your market, and earn fees on the volume they generate. * [Market admins](/lending-protocol/market-admins) * [How to create a market](/tutorials/tutorials/create-a-market) {% endtab %} {% endtabs %} ## Where to start ? The Honey Finance protocol is decentralised, thus its programs can be accessed by multiple frontends (websites) which allow users to interact with its programs.
HostURL
Honey Labs inc.
(Solana)https://solana.honey.finance/
(Polygon beta)https://polygon.honey.finance/
(Arbitrum beta)https://arbitrum.honey.finance/
Community forkhttps://honey.community
Local hosthttps://github.com/honey-labs/honey-frontend-redesign
# Learn Understand how Honey Finance turns your JPEGs into powerful financial assets While smart contracts allow us to remove the middleman, and make DeFi more powerful, it comes with certain drawbacks. The good thing about the middleman, is that he can help if you things go wrong. If you send money to the wrong address, smart contracts don't care, and there is nothing that you can do. This is the same for lending and borrowing, mistakes are permanent.\ \ DeFi is incredibly powerful weapon when wielded properly, but if used without prior knowledge of risk management, [it ends up enriching the rich, and leaving the poor rekt](https://www.ox.ac.uk/news/2021-02-15-retail-investors-are-amateurs-high-stakes-market-they-cannot-win). If you use DeFi to gamble, the casino will always win. It is only through rigorous learning that we can utilise these tools to their full extents, so that they may benefit those who are currently disregarded in our traditional financial system. We're not interested in building tools that copy our traditional financial system, especially when you copy their outcomes. With that in mind, we hope that you appreciate this assortment of knowledge bits, warnings and examples, and that it may help you in your crypto journey towards financial freedom.
## Educational content: {% content-ref url="/pages/Voi1iWRWNDHJg72yaRqh" %} [DeFi lending](/learn/defi-lending) {% endcontent-ref %} {% content-ref url="/pages/iTopHh29POhnHcMNAoMF" %} [Liquidations](/lending-protocol/liquidations) {% endcontent-ref %} {% content-ref url="/pages/NN8aX83InPU6cWewZbxd" %} [Risks](/learn/risks) {% endcontent-ref %} # DeFi lending The basics of decentralised lending & borrowing ## **🔑 Key terms** Below are the fundamental concepts you should be aware of before using any decentralised lending protocol. This list is not exhaustive and will grow over time. The more of these you learn, the more fruitful your DeFi journey will be. ## Collateral Asset(s) supplied by the borrower to the lender, which can be sold in case the borrower does not pay back their loan. In DeFi, the collateral you provide is usually greater than the loan you receive, we call this overcollateralisation. - [read more](https://www.investopedia.com/terms/c/collateral.asp) If you pay back your loan, you will receive your collateral NFT back. This also means the NFT you provide as collateral will be worth more than the loan you receive. ## Allowance Allowance determines how much a borrower is able to withdraw from the value of their collateral. In overcollateralised markets, allowance is always worth less than the estimated value of the collateral. It's measured using [LTV](#loan-to-value-ratio), but it is not the same thing as LTV. While the allowance marks the limit of what a borrower can manually borrower, a borrower's LTV can go above the allowance if interest accrues, or if the value of their collateral decreases. Allowance is adjusted and increased after loans are partially paid back, but it will never go above the market's predefined parameters. ## Loan-to-Value ratio LTV, or Loan-to-Value is a ratio (expressed in percentages) of how much you've borrowed divided by the value of your collateral. - [read more](https://www.investopedia.com/terms/l/loantovalue.asp)\ \ It's the inverse equation of the the collateralisation ratio. ![Example: Your NFT (collateral) is worth 100 SOL, you borrow 50 SOL. Your LTV = 50%](/files/SwPpQhFb5HSjeKi7DO2l) ## Debt Debt is the amount of money that is being used by borrowers. It has left the protocol, and is insured by collateral provided by borrowers. {% hint style="warning" %} "‘... 'debt’ is a legally enforceable promise from a debtor to a creditor to pay an interest rate and eventually repay the principal. Therefore, ‘debt’ cannot exist without legal agreements and cannot be enforced without courts of law." [*Yearn disclaimer*](https://yearn.finance/disclaimer)\ \ Meaning that debt in DeFi simply emulates how credit works in the traditional financial system, but it is not legally the same thing. {% endhint %} Debt in DeFi is overcollateralised. The interest rate, sometimes referred to as borrow APR accrues on debt, which increases the amount owed to lenders. ## APR vs APY Annual Percentage Returns vs Annual Percentage Yields. The difference is in how they are calculated. APR usually takes the average returns on an investment and annualises it by multiplying daily returns by the number of days in a year. APY does the same, but usually compounds these returns. Most APYs in DeFi are measured with daily compounding. APRs represent linear growth while APYs represent exponential growth. Thus, APYs will usually be higher than APRs. The higher the APR, the exponentially higher the APY on the same investment. # Risks How money can be lost in DeFi ## Smart contract risk Before you explore the world of DeFi and mistakenly think "it just works", we recommend checking out this [link](https://rekt.news/leaderboard/) which shows the biggest hacks, exploits, and design failures of some the biggest protocols in DeFi. Many of them have built stronger, and grow resilient to these attacks, however the competition between hackers and developers is never ending, and while we trend towards a safer DeFi ecosystem, we are not there yet. ## Closed source This may sound counter-intuitive, but using open source applications, where everyone can openly see the code tends to be much safer for the user. DeFi apps on Solana have a bad tendency to be closed source. Luckily this is changing, [here is a list](https://anchor.projectserum.com/programs) of smart contracts on Solana currently embracing open source. ## Bad actors Protocols can suffer from coordinated attacks by bad actors, trying to cause liquidations. Make sure that the protocols you use have safeguards in place to avoid these kinds of risks. To learn more about how Honey handles bad actors, check our[ whitepaper](broken://pages/-Mj9vV7g63tVHfuEGemz). ## Unforeseen DeFi is a bustling land of opportunity for anybody to empower themselves financially. With novelty and excitement comes unforeseen risks we may not even know about. In that sense, this list is by no means exhaustive. # Overview Peer-To-Pool NFT loans Honey Finance hosts plenty of lending pools. Each collateral (usually an NFT collection) has it's own lending pools. Lending pools match borrowers and lenders of a same collateral. Lenders supply liquidity (USDC or SOL,WETH, WMATIC ...) to an NFT collection's associated lending pool. Borrowers can borrow this money by depositing their NFTs as collateral. There are three main participants in Honey lending pools: * **Borrowers:** * **Lenders** * **Admins** * **Bidders** ## Borrowers Borrow money by depositing NFTs as collateral. Interest accrues on open positions with a variable [interest rate](/lending-protocol/interest-rates). Each position has a loan to value ratio as well as a liquidation threshold. If the value of the collateral goes down, or the loan is not sufficiently paid down, the NFT can be liquidated. When borrowing, users are allowed to withdraw based on their allowance. The allowance can be defined as, how much value are you able to receive as a percentage of the floor price. {% content-ref url="/pages/pxnzjEfa8wlG9xuhH694" %} [Borrowing](/lending-protocol/borrowing) {% endcontent-ref %} ## Lenders Supply tokens to lending pools and receive yield from accrued interest or liquidations. {% content-ref url="/pages/edwixbGSRJkP3BvfvRVa" %} [Lending](/lending-protocol/lending) {% endcontent-ref %} ## Admins Create lending pools on the platform and set an admin fee. Liquidations and interest repayments will include this fee, generating revenue for the pools admin. Admins can be DAOs, projects, or individuals. {% content-ref url="/pages/zq9GqXwzFGP6ik3k8LE4" %} [Lending pool admins](/lending-protocol/market-admins) {% endcontent-ref %} ## Bidders Bid using the liquidation page to acquire discounted NFTs as they are liquidated. {% content-ref url="/pages/iTopHh29POhnHcMNAoMF" %} [Liquidations](/lending-protocol/liquidations) {% endcontent-ref %} # Borrowing Deposit NFT collateral to get a loan Borrowing on Honey is always overcollateralised, meaning that borrowers must deposit collateral that is worth more than the amount they borrow. Loans do not have fixed durations, meaning that interest accrues over time. As long as borrowers pay down their interest and the value of the collateral does not go down, positions can stay open indefinitely. ## Variable interest rates Interest rates (also called Borrow APRs) are variable, which means they accrue over time at different speeds. If a variable interest rate is set to 365% Borrow APR, it means each day interest will accrue by 1%. The variability of the rates are determined by supply and demand. This means the more surplus of liquidity there is in a lending pool (more money being supplied than what is needed) the more rates will go down (and vice versa). {% hint style="info" %} Notice that Borrow APR does not compound, while supply APR does. That is why supply APR is measured using APY. Click [here](/learn/defi-lending#apr-vs-apy) to learn more about APR vs APY. {% endhint %} ## Loan to value Loan to value (LTV) is an indicator of how much can be borrowed from a collateral's value. A 50% LTV means that half of a collateral's dollar value (floor price) is given out to the borrower as a loan. Maximum LTV is determined by pool admins, but users cannot currently select values higher than 50%. Positions with higher LTVs have a higher risk of being liquidated as a small decrease in the value of the collateral could mean liquidation. ## Liquidation threshold A position's liquidation threshold determines the maximum LTV at which collateral can be liquidated. At the moment, liquidation thresholds for NFTs are set at 65% LTV (check for announcements, check the docs, or ask in the discord for details on specific collections). Each lending pool has its own liquidation threshold based on the risk of the underlying collateral. Liquidation thresholds are at the discretion of pool admins, who manage lending pools on Honey. ## Risk level To make tracking positions more intuitive, Honey features risk levels for each position. The risk level represents how close a position is to its liquidation threshold. {% hint style="info" %} If a loan reaches its liquidation threshold, the risk level will display as 100%.
*If the liquidation threshold is 65%, and a user has a position with a 32.5% LTV, their risk level will be 50%.* {% endhint %} # Bulk loan {% hint style="info" %} Bulk loan feature is in early testing, if you experience any issues, please let us know [on discord.](https://discord.com/honeydefi) {% endhint %} ### How it works Bulk loans allow borrowers to bundle multiple collaterals into a single loan. * On Solana: * Users are able to hold one position backed by 11 collaterals * This means one loan is held by the user and this loan holds 11 NFTs as collateral * On EVM chains (Polygon, Arbitum, ...) * Users can have unlimited positions, each with an unlimited amount of collaterals ### **Liquidations** Each bulk loan only has 1 liquidation price. The liquidation price is based on the collection's floor. You can keep track of how much the floor of a collection needs to fall in order to have your bulk loan liquidated.
{% hint style="warning" %} Unlike traditional lending, liquidating only 1 NFT collateral in a loan cannot improve the overall LTV of a position. {% endhint %} When your bulk loan is liquidated, the entire position is liquidated all at once, should there be enough bids to over all issued debt. Otherwise NFTs are liquidated one by one till the position regains a minimum health position. {% hint style="info" %} You can add and remove collateral whenever you want, without having to repay your entire loan. {% endhint %} # Lending Supply liquidity to NFT collections to receive yield Lenders can supply supply liquidity to lending markets and earn interest on fees paid by borrowers. The interest paid by borrowers determines the supply APR, which is an interest rate on the assets supplied by lenders. Liquidations serve to pay back the loans from borrowers and repay the lenders. Liquidations close open positions, which means lenders are paid back their principle + interest. ## Isolated Risk Markets Each lending market or pool on Honey lives in isolation. Risk is not carried over from one market to another, and if one suffers a cascade of liquidations, it will not affect the overall protocol. Thus each lending pool has a different risk profile, interest rate, and collateral type. Supplying liquidity as a lender means choosing which lending pool has the most favorable parameters. ## Utilisation rate The utilisation rate in a lending pool expresses how much of the deposited liquidity is current being borrowed. Each market has an optimal utilisation rate, which attempts to balance capital efficiency (using as much supplied as possible) and lender solvency (lenders being able to withdraw funds at any moment). Interest rates for both lenders and borrowers are a function of the utilisation rate in each lending pool. Higher utilisation in a lending pool implies there is a high demand for borrowing, and a low supply of lending. Interest rates will adjust to this supply and demand: * **High utilisation:** Increase interest rates to incentivise more lending. * **Optimal utilisation:** Lenders can withdraw capital when needed, and borrowers have access to liquidity. * **Low utilisation:** Reduce interest rates to incentivise borrowing. ## Auto-compounding Deposited liquidity in Honey auto-compounds, meaning that whenever interest is paid by borrowers, it is immediately added back in the liquidity pool. This allows the interest rate perceived by lenders to compound over time. Calculations for *Estimated APY* annualise the current interest rate, and compound it at a weekly rate. # Fees Explanation of fees in Honey's peer-to-contract protocol ## Protocol fees Honey charges a 10% commission on interest rates which go to the Honey DAO multisig wallet. {% hint style="info" %} If borrower's pay 100$ worth of interest to lenders, lenders will receive 90$, with the remaining 10$ going to the DAO. {% endhint %} ## Admin fees Lending pool creators can institute a fee in their lending pools. These admin fees also work as a commission on interest rates, and can range anywhere from 0% to 50% of the accrued interest in a lending pool. Admin fees are deducted from the total interest paid at the same time as protocol fees. {% hint style="info" %} In a lending pool with a 5% admin fee, if borrower's pay 100$ worth of interest to lenders:\ \- lenders will receive 85$\ \- Honey DAO will receive 10$\ \- Pool admin will receive 5$ {% endhint %} ## Borrow fees These fees are a commission on the debt issued by the protocol. Honey takes 1.5% of the debt upon borrowing on Solana. {% hint style="warning" %} Borrow fees on Honey's EVM beta (Polygon, Arbitrum, etc.) are currently set at 2%. {% endhint %} {% hint style="info" %} If a borrower withdraws 100$ worth of debt, their debt will be 101.5$. The additional 1.5$ is protocol revenue which can be claimed by the DAO from the lending pool. {% endhint %} ## Revenue Currently, the Honey Development Association and Honey Labs are eligible to claim these fees to fund development of the protocol. # Liquidations ## Liquidation of collateral Liquidations are events where the protocol sells your NFT collateral, in order to pay back lenders.\ \ Below you'll see how Honey and other protocols tackle this issue, but the most important concept to remember, is that the lenders will always need to be paid back for the money they deposited. Most parameters in a lending protocol are built around making sure that the lender does not lose the money that he loans to borrowers, or else there would be no lenders, and no loans. ## When do liquidations occur ? There are two reasons why a liquidation can occur. Too much interest has accrued without being paid back, or the value of the collateral provided has gone down. {% hint style="info" %} Liquidations are measured using a simple fraction called the Loan-To-Value (LTV):\ \ *Debt / Collateral value = LTV*\ \ If the numerator goes up (more debt), or if the denominator goes down (less collateral) then the LTV will increase, until it hits the liquidation threshold. {% endhint %} The higher the LTV, the more risky a loan becomes. Each market has a maximum LTV, called the **liquidation threshold**, which determines when a position is too high risk and must be liquidated.
## Liquidation thresholds To ensure that borrowers never have more debt from lenders than the collateral they've provided, assets are liquidated before they get too close to being undercollateralised. How close positions can get to undercollateralisation is determined by the liquidation threshold.\ \ While each market can differ based on who the admin is, the Honey protocol has recommended values for admins when creating markets on Honey. By default, maximum LTV someone can borrow is 40%, and the position is liquidated at 65% LTV. {% hint style="warning" %} At a maximum LTV of 40%, the collateral's value would have to drop by 38% to be marked for liquidation. {% endhint %} ## How does Honey run liquidations ? Honey Finance uses a liquidation aggregator to keep markets safe, and better handle liquidation cascades. There are currently 3 layers activated in the liquidation program: * Bids (collection wide) * [NFT AMM's](https://tomjpandolfi.medium.com/understanding-nft-amms-831e90596c56) (Tensor, Elixir, NFTX, ...) * OTC With more layers coming soon: * Vaults * [LIDOVS](http://tomjpandolfi.com/whitepapers/lidov.html) * Bids (individual NFTs) Unlike other NFT lending protocols, Honey does not wait for NFTs to be liquidated before handling liquidations. This would result in the protocol, and ultimately the community, holding on to bad debt which it hopes to sell. Instead, Honey prepares liquidations on collateral as soon as it's deposited into our markets, allowing liquidators to bid on potentially discounted NFTs, even if they positions are healthy. As the positions approach their liquidation thresholds, bidders will need to place the highest bid in order to receive the NFT. The moment that an NFT crosses its liquidation threshold, it is immediately sold to the highest bidder. If there are no bids big enough to cover the debt, then Honey aggregates different NFT AMMs to find instant liquidity for the collateral. In all cases, collateral is sold instantly, to not allow bad debt to accrue in the protocol. # Lending pool admins Market admins are tasked with creating and maintaining lending markets for NFT collections. Each market has a set of mutable fields which can be controlled by market admins, including: * interest rate model * admin fee * liquidation thresholds * oracle provider * liquidation fees This role is what enables Honey to adopt a platform approach to lending, where lending markets are generated by admins rather than having the protocol issue central markets. This allows a variety of loans to be issued with more customisation for each collection. These admins can be DAOs or individuals, and don't necessarily need to be tied to the project they are creating a market for. ## Admin fees Market admins can institute fees of up to 50% in their lending markets. This fee is paid from the interest paid by lenders, or during liquidations. Admin fees are deducted after protocol fees, which are at 10%. *Example: With a 5% admin fee, if 1000 USDC is paid by borrowers in interest, the protocol fee will first take 10%, then the admin fee will charge 5% of what is left. In this market, lenders receive 85.5% of what borrowers pay in interest.* Admin fees can serve as revenue for a DAO, or can be used to incentivise market makers. *Example: Admin fee is 10% in a market that predominantly uses Elixir for liquidations. Admin pays half of their fee towards liquidity providers on Elixir, to secure their market with more liquidity. The other 5% is profit, or can go towards paying oracles, grace periods, and more.* # Pool creation Permissionless Lending Pools Anybody with a certain amount veHONEY can spin up a lending pool for any given NFT collection. **Requirements for listing:** * Pool admin must hold at least 50k veHONEY * NFT collection must use [metaplex standard](https://docs.metaplex.com/programs/token-metadata/token-standard) and EIP-721 (+ more standards comming soon) * Collection must have a Switchboard or [Hivemind](https://honey-labs.gitbook.io/hivemind/) oracle Most fields in the lending pool creation are mutable, and be changed at a later date. {% hint style="danger" %} Pool admins have full control over their pools and their oracles. This means pool admins could act maliciously resulting in the loss of user funds. Please be careful when using unverified pools on Honey Finance. {% endhint %} # Interest Rates ## Supply and Demand for capital Interest rates on loans, also referred to as borrow APR, are calculated to reflect supply and demand for capital in lending markets. Supply is represented by lenders supplying liquidity or capital, and demand is represented by borrowers who seek capital in exchange for depositing collateral. If there is an abundance of capital allocated to a market, more than is necessary, interest rates will be low. If however there is a shortage of capital in another market, which means strong demand with low supply, then interest will be higher. This incentivises capital to be allocated where it is most needed. Interest rates become a signal for lenders to indicate where money is most needed, and where in turn they can get the highest return on their capital. # Protocol math (Solana) Solana's programs use linear functions to derive interest rates. Thus, all of the interest rates on the Solana lending programs can be expressed as: **`y = ax + b`** Where **`y`** is the interest rate for a given utilisation rate **`x`**. {% hint style="info" %} Variable **`a`** is the slope of the curve, determining how fast or slow interest accrues given a change in utilisation. {% endhint %} ```typescript // Example of interest calculation when current utilisation is below 1st optimal rate interestRate = ((BORROW_RATE_ONE - BASE_BORROW_RATE) / ( OPTIMAL_RATIO_ONE - 0 )) * utilizationRate + (-1*((BORROW_RATE_ONE - BASE_BORROW_RATE) / ( OPTIMAL_RATIO_ONE - 0 )) * 0 + BASE_BORROW_RATE ) /* y = interestRate * a = (x2 - x1) / (y2-y1) * x = utilizationRate * b = -ax + y * * Meaning that: * * y = interestRate * a = ((BORROW_RATE_ONE - BASE_BORROW_RATE) / ( OPTIMAL_RATIO_ONE - 0 )) * x = utilizationRate * b = (-1*((BORROW_RATE_ONE - BASE_BORROW_RATE) / ( OPTIMAL_RATIO_ONE - 0 )) * 0 + BASE_BORROW_RATE ) */ ``` Varying risk parameters and collaterals will result in different values for `ax + b` ``` // InterestRate.ts // Parameters used in the default risk model export const OPTIMAL_RATIO_ONE = 0.4; export const OPTIMAL_RATIO_TWO = 0.8; export const BASE_BORROW_RATE = 0.1; export const BORROW_RATE_ONE = 0.25; export const BORROW_RATE_TWO = 0.4; export const BORROW_RATE_THREE = 1.4; ``` # Low risk model Interest rate model for low risk assets ## Objective The low risk model is intended for low risk collaterals. It aims to maintain utilisation between 60% and 80%. * Bluechip NFTs * Capital efficient ## Graph view
{% hint style="info" %} The spread between the borrow rate and the supply rate is due to capital inefficiency. The less supplied funds are being utilised, the less supplied funds earn interest. As more of the supplied funds earn interest, the spread between interest paid by borrowers and earned by lenders tightens. {% endhint %} {% hint style="warning" %} These values do not factor in admin fees. Higher the admin fees result in lower supply APRs. {% endhint %} ## Table view
Utilisation rateBorrow APRSupply APR
0%5.00%0%
5%8.75%0.44%
10%12.50%1.25%
15%16.25%2.44%
20%20.00%4.00%
25%23.75%5.94%
30%27.50%8.25%
35%31.25%10.94%
40%35.00%14.00%
45%38.75%17.44%
50%42.50%21.25%
55%46.25%25.44%
60%50.00%30.00%
65%57.50%37.38%
70%65.00%45.00%
75%72.50%54.38%
80%80.00%64.00%
85%110.00%93.50%
90%140.00%126.00%
95%170.00%161.50%
100%200.00%200.00%
# Default risk model Interest rate model for low risk assets ## Graph
## Table | Utilisation rate | Borrow APR | Supply APR | | ---------------- | ---------- | ---------- | | 0% | 5% | 0% | | 5% | 11.88% | 0.59% | | 10% | 13.75% | 1.38% | | 15% | 15.63% | 2.34% | | 20% | 17.50% | 3.5% | | 25% | 19.38% | 4.84% | | 30% | 21.25% | 6.38% | | 35% | 23.13% | 8.09% | | 40% | 25% | 10% | | 45% | 26.88% | 12.09% | | 50% | 28.75% | 14.38% | | 55% | 30.63% | 16.84% | | 60% | 32.50% | 19.50% | | 65% | 34.38% | 22.34% | | 70% | 36.25% | 25.38% | | 75% | 38.13% | 28.59% | | 80% | 40.00% | 32.00% | | 85% | 65.00% | 55.25% | | 90% | 90.00% | 81.00% | | 95% | 115.00% | 109.25% | | 100% | 140.00% | 140.00% | # High risk model Interest rate model for low risk assets ## Objective The high risk model is tailored for high risk collaterals. It aims to maintain optimal utilisation between 40% and 60%, while attempting to minimise the risk of 100% utilisation. * Novel assets * Volatile assets * Protect lenders ## Graph
{% hint style="info" %} The spread between the borrow rate and the supply rate is due to capital inefficiency. The less supplied funds are being utilised, the less supplied funds earn interest. As more of the supplied funds earn interest, the spread between interest paid by borrowers and earned by lenders tightens.t {% endhint %} {% hint style="warning" %} These values do not factor in admin fees. Higher the admin fees result in lower supply APRs. {% endhint %} ## Table | Utilisation rate | Borrow APR | Supply APR | | ---------------- | ---------- | ---------- | | 0% | 10% | 0% | | 5% | 17.5% | 0.88% | | 10% | 25% | 2.50% | | 15% | 32.5% | 4.88% | | 20% | 40% | 8.00% | | 25% | 47.5% | 11.80% | | 30% | 55% | 16.50% | | 35% | 65% | 21.88% | | 40% | 70% | 28% | | 45% | 72.5% | 32.63% | | 50% | 75% | 37.50% | | 55% | 77.5% | 42.63% | | 60% | 80% | 48.00% | | 65% | 107.5% | 69.88% | | 70% | 135% | 94.50% | | 75% | 162.5% | 121.88% | | 80% | 190% | 152% | | 85% | 217% | 184% | | 90% | 245% | 220.5% | | 95% | 272.5% | 258% | | 100% | 300% | 300% | # Protocol math (Ethereum) Interest rate models in use for EVM protocol ## Utilisation This current state of supply and demand for liquidity is measured with the **utilisation rate**, in other words, how much of the supplied liquidity is being borrowed (utilised) by borrowers. The higher the utilisation rate, the higher the interest rate in a lending market. {% hint style="info" %} *Ut* = utilisation rate at time *t*\ *Uoptimal* = optimal utilisation rate\ \ *Rv* = variable borrow rate\ *Rv0* = base variable borrow rate (interest when utilisation = 0%)\ *Rslope1* = constant which determines the progression of the interest rate **until** Uoptimal\ *Rslope2* = constant which determines the progression of the interest rate **after** Uoptimal {% endhint %} The protocol has built in incentives in the interest rate model. To be capitally efficient, it sets an *optimal utilisation rate.* Below this rate, the protocol will incentivise utilisation, above this rate and it will disincentivise utilisation. Two different slopes are used to measure interest rates, one for when utilisation is below optimal, and one for when it is above the optimal rate. When not enough borrowers are borrowing available liquidity, the interest rate will be calculated as such: $$ R\_v =R\_{v0} + (U\_t \div U\_{optimal}) \times R\_{slope1} $$ When too many borrowers are borrowing available liquidity, the interest rate will be calculated as such: $$ R\_v = R\_{v0} + R\_{slope1}+(U\_t - U\_{optimal})\div(1-U\_{optimal})\times R\_{slope2} $$ ## Protocol parameters Honey Finance lending markets use the following parameters as default: {% hint style="info" %} **Optimal utilisation**: `80%`\ **Borrow APR at Uoptimal**: `40%`\ **Base borrow APR**: `10%`\ \ **Rslope1 constant**: `0.3`\ **Rslope2 constant**: `1` {% endhint %} You can try these parameters out for yourself and test models [here](https://share.streamlit.io/simeongk/interest-rates/main.py). # Risk # Security Honey's programs are frequently audited or reviewed by Sec3, OtterSec, and security contractors.
NameServiceWebsite
OtterSecAudit reporthttps://osec.io/
Sec3 (Soteria)Vulnerability scanning https://www.sec3.dev/
Immunefi (coming soon)Vulnerability reportinghttps://immunefi.com/
# Risk Methodology The Honey protocol is built around 4 core principals: * Decentralised pricing is the manifestation of risk in a market * Risk must be compartmentalised * In truly free markets, bad debt is the responsibility of market participants * Fixed losses are more desirable than floating losses Many design decisions stem from these principals, the sum of which has outlined a methodology for how risk is handled in Honey's various markets. ### Decentralised pricing Interest rates on Honey are a function of supply and demand for liquidity inside of lending pools. Thus, a shortage or surplus in the supply of liquidity should be considered a signal from the market, as to the underlying risk contained within it. This is especially important in permissionless markets, where the range of risk can be incredibly wide, and where curation is impossible. The sum of borrowers and lenders interacting in free markets express a collective sentiment around collections regarding their underlying risk, a sentiment which is aggregated in a single figure, the interest rate. ### Risk Compartmentalisation Honey uses Isolated Risk Markets (IRMs), meaning that debt and liquidity in a market is contained, and not spread throughout the protocol. This isolation of risk safeguards the protocol from bad actors, and limits contagion during liquidation events. It allows lenders and borrowers the opportunity to tailor their actions according to their own risk profiles. ### Double-edged sword of responsibility If markets and their rates are independent, then collections with higher risk should attract less lenders, resulting in higher interest rates in riskier markets. Lenders participating in these markets carry this risk but also stand to benefit from the increased potential upside. As long as they equally participate in both the potential upside *and* downside of respective markets, then the subsequent result of their speculation is their own doing, and DAOs, admins, and communities should not be called to intervene. ### Realisation of losses The protocol's liquidation engine is built to liquidate by any means necessary, even if this constitutes a loss. The idea being that fixed losses can be managed in time as risk adjusts in a market. Fixed losses also become the responsibility of the market participants, instead of the liquidators, once again aligning incentives between potential upside and downside. The protocol and DAO do not hold on to risk in the hopes of rising floor prices, but instead ensure the smooth and predictable operation of markets in volatile times, that is their primary task. # Protocol risks Below is a non-exhaustive overview of the risks associated to using Honey Finance ## Isolation of risk Lending and borrowing markets on Honey are what's known as Isolated Risk Markets (IRMs). IRMs are not funded by the Honey DAO, even for our own collection Honey Genesis Bees. Instead, all of the liquidity in the market is provided by independent lenders which can withdraw their capital at any time. This means lenders take on the risk of bad debt, instead of the protocol. If collateral cannot be liquidated, lenders will lose parts of their deposited assets and in exchange hold on to fractionalised shares of the collateral. At a protocol level, Honey connects lenders and borrowers, and at no moment does the unsold or unliquidated collateral go back to the Honey DAO. The Honey DAO develops the protocol, and maintains these free and isolated markets on its platform, but does not have a responsibility to intervene in them. Lenders implicitly choose varying levels of risk when providing liquidity to isolated risk markets, as the risk of markets defaulting can be expected to correlate to higher interest rates as a function of supply and demand. **The result of this approach is that one market defaulting does not affect any other market on the protocol**, as risk is isolated. This also allows Honey to add any collections to its markets, as it does not have to worry about the collection's risk and solvency contaminating the protocol, leaving lenders and borrowers to assess the risk for themselves. ## Liquidations & Grace Periods Unlike most NFT lending protocols, Honey performs auctions *before* NFTs are marked for liquidation. This is to eliminates the risk of the protocol holding on to bad debt, and makes liquidations predictable and transparent. When collateral needs to be liquidated, the protocol checks to find the highest bids for the associated collection. If bids are not high enough to cover the full amount of the debt owed to borrowers, then the protocol seeks to liquidate on the various NFT AMMs it integrates with, to obtain instant liquidity. Liquidations should happen in the best available AMMs and pools, however if slippage is too high, and the value obtained from the AMM is inferior to the debt, then the liquidation will happen anyways. Collateral must be liquidated, and cannot be held as bad debt, meaning the liquidation engine favours losses over a floating and unrealised loss in the market which could get worse with time. This bad debt accrues in the isolated risk market, it does not necessarily affect a lenders ability to withdraw assets, however it will take time for interest accrued by lenders to pay off the bad debt in the IRM. To learn more about Honey's liquidation engine, read [here](/lending-protocol/liquidations). Preparing liquidations as loans approach their maximum risk thresholds also means that there are no grace periods, again, minimising bad debt in the protocol. A grace period would result in somebody holding on to the bad debt while waiting for borrowers to potentially pay back their loans. Unless lenders create a market where they accept to temporarily hold on to this bad debt, there is no grace period mechanism by which the DAO or the protocol would hold on to bad debt on behalf of borrowers. ## Bank runs A bank run in a lending protocol happens when lenders rush to withdraw their money faster than borrowers can repay their loans, and faster than the protocol can liquidate collateral. Because Honey does not use post-liquidation auctions for liquidating collateral, there is no window of time where lenders have to wait for NFTs to be sold. As lenders withdraw their capital, the utilisation rate will increase, since a larger share of the remaining capital is being borrowed. Utilisation rates are designed to provide a margin of safety for lenders wishing to withdraw collateral, but if more lenders than the model predicts start to withdraw funds, interest rates will begin to rise exponentially for borrowers. Rising interest rates will trigger liquidations, however if the majority of lenders decide to withdraw their funds at the same time or in a very short window of time, they will have to wait for increased interest rates to accrue on borrowers. This period of time where funds are unavailable to lenders is the result of a bank run. To minimise the risk of being caught in a bank run, lenders should always check the utilisation rate of the markets in which they lend. At 100% utilisation, they will need borrowers to either pay back their loan, or be liquidated before withdrawing funds. To learn more about utilisation rates, read [here](/faq/faq/lending-and-borrowing-faq). ## Oracle risks One of the hardest aspects of issuing loans on NFTs is in valuing the collateral. This is done by oracles who estimate collateral value based on the floor price of a collection over a given amount of time. Honey protocol's approach is the same with oracles as it is for isolated risk markets. Oracles are chosen by market admins, and it is up to lenders and borrowers to trust the oracle of their particular isolated risk market. Honey integrates with [Switchboard](https://switchboard.xyz/), a permissionless oracle, allowing anybody to provide their own data feed to value NFT assets. Different markets can be created around different data feeds, and lenders must decide which one they feel has the appropriate levels of risk in return for the interest rate of the associated market. Oracles and floor prices could be manipulated by bad actors, if there is not sufficient modelling against price manipulation. Before participating in a market, lenders and borrowers should research how their oracle is configured, to properly evaluate risk. ## Unforeseen risk Despite being regularly audited and reviewed open source, it's possible for Honey's programs to contain bugs and vulnerabilities, which could result in the loss of user funds. Other risks associated with using DeFi protocols may not be known yet, and users should always act with extreme caution when participating in debt or DeFi protocols emulating debt instruments. # Overview This product is in early alpha, use at your own risk. [**Honey P2P**](https://p2p.honey.finance/) is built as a **layer 2** application on top of Honey's core lending product. It is meant to drive [capital efficiency](https://docs.honey.finance/products/honey-p2p/refinancing#capital-efficiency) in the protocol by allowing lenders and borrowers to be matched in peer-to-peer (P2P) markets. Just like any layer 2 application, it can exist on it's own and can thus be used as a normal peer-to-peer marketplace for loans. Honey P2P focuses on supporting financial NFTs, such as options, derivatives, or complex liquidity positions. As a **permissionless** dapp, anybody can use it to collateralise any NFT and build **open source** use-cases on top of Honey P2P. ## Explore P2P lending {% content-ref url="/pages/RtztBbXF13LeMcq5BuzG" %} [Refinancing](/honey-p2p/refinancing) {% endcontent-ref %} {% content-ref url="/pages/6N115LCcoVDoRWiVPok9" %} [Protocol fees](/honey-p2p/protocol-fees) {% endcontent-ref %} {% content-ref url="/pages/WMYCOLJy814nfCbk2cns" %} [Lending](/honey-p2p/lending) {% endcontent-ref %} {% content-ref url="/pages/naIYEk4hu0OrjlpmBacJ" %} [Borrowing](/honey-p2p/borrowing) {% endcontent-ref %} # Borrowing Borrowers request **fixed duration** loans with their NFTs being used as collateral. If the loan is not paid back before the end of the fixed duration, the lender will be able to redeem and own the NFT collateral from the borrower. You can follow our step-by-step tutorial below: {% content-ref url="/pages/3CUibXAWLrgs8KZvP11c" %} [Broken mention](broken://pages/3CUibXAWLrgs8KZvP11c) {% endcontent-ref %} ## Paying interest Interest accumulates over the duration of the loan. The earlier interest is paid, the less borrowers interest will accrue. When requesting a loan, borrowers list the maximum interest rate they're willing to pay. {% hint style="warning" %} Interest rate refers to the premium borrowers pay lenders over the fixed duration of the loan.\ \ Interest rates over different durations can be misleading. It is important to annualise the interest to compare rates to one another. {% endhint %} ## Repayments Repayments are done all at once at any point throughout the duration of the loan. Repaying loans earlier only affects the interest that has had time to accrue, but the debt will always have to be refunded in full to the lender to avoid liquidation. ## Durations Honey P2P durations last a minimum of 1 day, and have no maximum duration. They are chosen by borrowers when asking for loans. ## Liquidation If the debt and interest has not been repaid in full by the end of the fixed duration, lenders will have the ability to liquidate the collateral and take ownership of the borrower's NFT. In Honey P2P, lenders play the role of liquidators, and can seize the collateral if the borrower does not pay back their loan. Until the lender decides to liquidate, borrowers can still repay their loan and get their NFT back. This creates an incentive for lenders to liquidate positions as fast as possible after the fixed duration is up. **There are no grace periods on Honey P2P, which means lenders can liquidate as soon as the fixed duration is up.** ## Want to learn more ? {% content-ref url="/pages/pj2yeui4SbZrUJYPcS47" %} [Peer-to-Peer FAQ](/faq/faq/peer-to-peer-faq) {% endcontent-ref %} # Lending ## Counter offers *(coming soon)* Lenders will be able to respond to borrowers with a counter offer to negotiate on the terms of the loans. Adjustable variables include: debt amount, interest rate, and duration. ## Liquidations When the loan is not paid back in time, lenders will have the option to foreclose the loan. This means the collateral is seized by the lender and no longer belongs to the borrower. The borrower can keep the debt, but loses the right to reclaim their collateral if the borrowed amount and interest are not paid back in time. ## Collection offers *(coming soon)* ## Want to learn more ? {% content-ref url="/pages/pj2yeui4SbZrUJYPcS47" %} [Peer-to-Peer FAQ](/faq/faq/peer-to-peer-faq) {% endcontent-ref %} # Refinancing Refinancing loans is a process in which a user can move from a P2C loan to a P2P loan. {% hint style="info" %} **Example of refinancing**\ \ Barry owns a DeGod which has a 13k USDC floor price. \ \ To obtain instant liquidity, he uses Honey P2C loans, and obtains a loan for 5400 USDC. (40% Loan-to-Value). This loan has a variable interest rate, which accrues over time: the loan will exist until Barry pays it back, and the interest will accrue for the entire duration. He would like to borrow more at a lower interest rate by refinancing his loan. Barry lists his P2C loan on Honey P2P, offering lenders the opportunity to earn higher yield so that he can borrow more. The loan now has a fixed duration requested by Barry when refinancing. Barry sets the terms of the new P2P loan: fixed duration, fixed interest and fixed amount. Barry asks for 12k (92% Loan-to-Value), for 10 days at 10% interest. {% endhint %} ## Capital efficiency Whereas P2C lenders only have the optimal rate of their funds being utilised (70% utilisation by default), P2P lenders can earn yield on 100% of the funds they supply. Fixing the duration of loans allows for lenders to boost their yield by having 100% utilisation on supplied assets. {% hint style="info" %} **P2C loan:** The lending market has 70% utilisation, which means 70% of their supplied assets are being borrowed. This means a lender providing 100$ only has 70% of their funds earning interest: 70$ is earning interest while 30$ is left inactive in the lending pool.\ \ **P2P loan:** If a borrower requests 70$, and the lender only has to provide 70$, meaning the lender earns interest on 100% of their capital. {% endhint %} # Protocol fees Honey P2P has 2 protocol fees: 10% of what lenders receive (lending fee) + 1.5% of debt (borrower fee). {% hint style="info" %} **Example of loan on Honey P2P**\ \ **Maia** (lender) and **Barry** (borrower) enter a loan agreement on Honey P2P:\ \ Barry requests to borrow 500 USDC for his Honey Genesis Bee NFT for 10 days. He is willing to pay lenders up to 8% interest to fund this loan.\ \ Maia accepts Barry's loan request and funds the loan for 500 USDC. \ \ 10 days later, Barry pays his loan back: 500 USDC + 40 USDC (the 8% interest) {% endhint %} ## Borrower fees The protocol collects a 1.5% fee on the debt taken out by borrowers. Borrower fees ensures that the protocol receives fees regardless of liquidations and default rates. {% hint style="info" %} When Barry takes out a loan for 500 USDC, he receives 492.5 USDC of debt and the protocol receives 7.5 USDC. {% endhint %} ## Lender fees The protocol collects 10% of the interest accrued to lenders. {% hint style="info" %} When Barry pays back 40 USDC of interest, Maia receives 36 USDC and 4 USDC goes to the protocol. {% endhint %} # HONEY The native asset of the protocol The [HONEY token](https://solscan.io/token/HonyeYAaTPgKUgQpayL914P6VAqbQZPrbkGMETZvW4iN) is the lifeblood of the Honey Finance protocol. It is used to incentivise lending, borrowing, liquidity provision, and contributions to the DAO. ## Distribution The HONEY token had a fair launch on March 31st 2022 with no presale or allocation to early investors. The fair launch raised 755k and sold 85 million tokens. 77.5% of the total supply is allocated to the community. * **54% goes to the DAO’s treasury** to be split between the insurance fund, the Honey Foundation, grants, and more. * **15% goes to liquidity incentives** either through liquidity mining, bond purchases, or NFT staking. * Half of all liquidity mining incentives are allocated to Honey Genesis NFTs * **8.5% is allocated to the IDO** 22.5% is allocated to Honey Labs. * **22.5% is allocated to Honey Labs inc.** based on a 2 year vesting schedule, following the same schedule as [Rari Capital](https://medium.com/rari-capital/an-updated-take-on-vesting-8b3aa8c3a902) ## How to obtain HONEY Honey can be earned by participating in liquidity mining. Half of all $HONEY liquidity mining goes to Honey Genesis NFT holders. The remaining half of liquidity mining tokens are used to incentivise (through rewards) lending, borrowing, and liquidity providing. ## How to hold HONEY Simply holding HONEY tokens in a wallet comes with high opportunity cost relative to veHONEY rewards. Longer term HONEY holders should vest tokens to veHONEY in order to participate in the DAO. The minimum [vesting period](/tokenomics/vehoney) is 1 week and the maximum is 4 years. Short term holders and speculators can provide liquidity to HONEY/USDC on [Aldrin](https://dex.aldrin.com/pools/Hon...4iN_USDC) or [Orca](https://www.orca.so/liquidity/browse?tokenMint=HonyeYAaTPgKUgQpayL914P6VAqbQZPrbkGMETZvW4iN) # veHONEY Time weighted governance Vote escrowed HONEY (or veHONEY) represents governance in the Honey DAO. veHONEY follows the veTOKEN model created by Michael Egorov (Curve), which allows governance in DAOs to be controlled by those with long term vested interests in the protocol. Users can lock their $HONEY tokens for set periods of time and receive veHONEY as a function of two variables: * How much $HONEY is locked * How long $HONEY is locked for {% hint style="info" %} How much veHONEY is received for locking up 100 HONEY tokens, depending on time:\ \ **1 month**: 100 HONEY -> **2** veHONEY\ **3 months**: 100 HONEY -> **6.25** veHONEY\ **6 months**: 100 HONEY -> **12.5** veHONEY\ **1 year**: 100 HONEY -> **25** veHONEY\ **4 years**: 100 HONEY -> **100** veHONEY {% endhint %} ## Votes ### Approving lending markets Governance proposals are used to approve new lending markets into the protocol. This means projects wishing to be added for collateralisation must either vest HONEY to vote for themselves or incentivise current holders to approve their proposal through bribes. Bribes are usually spl tokens distributed to voters of certain proposals. These tokens can be governance, farming rewards, USDC, whitelist tokens, NFTs, etc. ### Honey Improvement Proposals \[HIPs] The protocol's tokenomics and changes to its programs / smart contracts must be approved by the community through governance. ## Boosted yields\* Those who vest HONEY tokens into veHONEY can receive boosted APRs on the liquidity they supply in lending markets. Vesting HONEY or locking NFTs allows lenders to boost their stable coin yield by 20%. This is currently being developed. ## Revenue sharing\* The Honey Finance protocol generates fees which could be redistributed to veHONEY holders. This is not included in the design of the token to avoid regulatory issues, however nothing stops the DAO from routinely redistributing these fees to holders. Such a proposal cannot come from the core team, and must be properly decentralised. Up to 75% generated fees are open for potential redistribution. ## Staking-as-a-Service DAOs utilising Honey's staking-as-a-service (SaaS) can vest HONEY to be featured on the page's approved collections. Farms are ordered by the amount of veHONEY held by the pool creators.\ \ HONEY must also be vested in order to unlock certain features such as dual rewards, and gamified staking. The cost of these additional features goes up linearly every week. When a DAO purchases HONEY and locks it for the farm, they lock in the price at which they vested it at for the duration of their vesting period. ## pHONEY vesting vs HONEY vesting *pHONEY is a deprecated asset no longer supported by Honey DAO* Both tokens can be locked to receive veHONEY. When pHONEY is vested to receive veHONEY, it is automatically converted to HONEY and burned. The amount of HONEY received after the vesting is over depends on the vesting period. Converting pHONEY to HONEY using a vested pool means applying a multiplier to the pHONEY : HONEY ratio. This means pHONEY vested for 12 months has a 1:10 pHONEY : HONEY ratio. When a pHONEY : HONEY conversion happens in the vested pool, the user receives veHONEY calculated from how much HONEY they will receive at the end of the lock. HONEY tokens can also be vested for veHONEY. They have no multiplier and simply turn into time weighted governance. When the vesting period is over, the user can claim the same amount of tokens they locked up. # pHONEY (old) Pre-IDO HONEY {% hint style="warning" %} pHONEY is a deprecated asset no longer supported by Honey DAO {% endhint %} pre-IDO HONEY, also referred to as pHONEY was rewarded to early users in the protocol. $pHONEY is not tradeable on any exchange and is not officially officially backed by any liquidity.\ \ Eventually, all pHONEY will be converted into HONEY. The conversion ratio between the two depends on how the tokens are converted. pHONEY can be converted into either locked or unlocked pools. If pHONEY is deposited into a pool without locking (unlocked pool) the conversion rate from pHONEY to HONEY is 1:1. If pHONEY is locked in a locked pool, the conversion rate varies on the locking period. The longer the locking period, the higher the conversion ratio: {% hint style="info" %} Conversion ratio between pHONEY : HONEY when locking pHONEY:\ \ **3 months** -> 1:2 ratio\ **6 months** -> 1:5 ratio\ **12 months** -> 1:10 ratio {% endhint %} During the lock up periods, pHONEY depositors will will hold veHONEY. This veHONEY balance is calculated by the amount of HONEY to be received after lockup, and the duration which has been selected. {% hint style="warning" %} All deposited pHONEY is burned, conversions are one-way only. {% endhint %} ## pHONEY to HONEY conversion ### How to convert pHONEY -> HONEY (unlocked pool) {% embed url="" %} Deposit pHONEY into the unlocked pool "Convert pHONEY" in order to trade pHONEY into HONEY at a 1:1 ratio. You will start to earn your HONEY after 24 hours and over the course of 3 weeks. If you deposit 100 pHONEY, you will start to earn (after 24 hours) 4.76 $HONEY per day every day for 3 weeks. ### How to convert pHONEY -> HONEY (locked pool) {% embed url="" %} Lock pHONEY into the locked pool "Vest pHONEY" in order to trade pHONEY into HONEY with a multiplier. Check the table above for conversion ratios. Select how much pHONEY you would like to deposit, then for how long you would like to deposit it for. The program will mint the right number of HONEY tokens at the conversion ratio you selected and will vest it for you. *Example: User locks 10 pHONEY for 12 months. 10 pHONEY is burned and 100 HONEY is minted, those 100 HONEY are vested for 12 months. User receives 25 veHONEY as per* [*veHONEY conversion*](https://docs.honey.finance/products/tokens/vehoney) *and can unlock the 100 HONEY in 12 months in exchange for their veHONEY.* \ Think of pHONEY like a DeFi airdrop to reward early users, except that here it was used to demonstrate the functionality of Honey's staking platform. Rewarding users before the launch of the official token secures the decentralisation and fair access of the protocol's governance. DAOs who have staked with us now have a say in the direction of Honey Finance. # Genesis NFTs The most powerful NFTs on Solana You can purchase these here: * Tensor : * Magic Eden : Currently Genesis NFTs are support on the Solana Network. Address (via Solscan view): # Liquidity Mining Stake Genesis NFTs to receive $HONEY ## Liquidity Mining Half of the entire protocol's liquidity mining program (half of 150 million tokens) is allocated to Honey Genesis NFTs. This means the NFTs yield HONEY minted from the initial supply which can be vested for all of the veHONEY benefits. **75,000,000 $HONEY distributed to all staked NFTs over 2 years.** If all NFTs are staked, maximum dilution would result in 10.27 $HONEY per day per NFT. {% hint style="info" %} [HIP#3](https://forum.honey.finance/t/hip-3-increased-allocation-of-honey-to-nft-holders/187) extended the previous 2-year liquidity mining program to continue with a yearly halving schedule. This means total yield per NFT is now \~ 11.25k instead of 7.5k $HONEY. {% endhint %} # Alpha program Experimental features / products of Honey Finance ## Alpha program 🧪 Honey's alpha program is designed to make the Honey NFT holders the most innovative DAO in DeFi, by building and creating experimental features made accessible exclusively to Honey NFT holders. * **Experimental yield vaults:** DeFi and arbitrage strategies can be created by the members * **Airdrops:** New NFT experiments from the team (such as yield bearing NFTs, LP NFTs, veNFTs, and other financialised NFTs) are airdropped to members of the alpha program. To enroll, you must hold an NFT and react with the 🧪 emoji in the welcome message on the [discord](https://discord.gg/honeydefi). # NFT vs Token benefits The most powerful NFTs on Solana {% hint style="info" %} Key: ✅ Direct Access ✔️ Indirect Access ❌ No access {% endhint %}
BenefitsGuest userToken StakerNFT Holder
NFT oracle✅✅✅
Low fees✅✅✅
Access to yield vaults✅✅✅
Permissionless access to protocol✅✅✅
Boosted yield❌✅✅
Early access to farms / markets❌❌✅
Liquidity mining program❌❌✅
Alpha program❌❌✅
DAO treasury distribution❌✅✔️
Governance❌✅✔️
Proposal creation❌✅✔️
Boosted yield❌✅✅
*\*NFT stakers receive the $HONEY token during a 2-year liquidity mining program, and can thus opt-in to any of the benefits of token stakers. This indirect benefit is labeled* ✔️ # Developers Doxxed and anon contributors to Honey Protocol ## 🧙🏻‍♂ Tom J. Pandolfi / Founder - Operations🇫🇷 > tompandolfi.eth or 🧙🏻‍♂️.sol Tom Pandolfi founded Honey Labs to leverage NFTs as powerful assets in DeFi. With a background in Economics and Business, he oversees growth of the project, product development, strategy and design. Tom has worked as a project developer since 2019 on Ethereum and Polygon. Most of his long form content can be found [here](https://tomjpandolfi.medium.com/) on Medium. * Twitter: [@tompandolfi](http://t.me/tompandolfi) * Website: tomjpandolfi.com ## ⛵️ theSailor - COO As our COO, Sailor handles of all of the finances and Operations of the Honey DAO. This includes partnerships/business development, accounting, financial projections, mergers and acquisitions, runway management, and communications. He is an advocate for financial transparency and is pushing this core value throughout Honey Finance. Feel free to contact him at any time, his DMs are always open: * E-Mail: * Twitter: [@theSailor\_\_](https://twitter.com/theSailor__) * Medium: ## 🧞‍♂️ Bagchaserjoe / Head of Research > bagchaserjoe.sol Bagchaserjoe is a data analyst, product designer, and self-proclaimed quant for Honey. He is in charge of crunching numbers, as well as modelling the implementation of certain strategies and features. ## Core Contributors 🧠 Members of the Honey Development Association, whose mission is to help build the Honey Finance protocol. * [@m4rio](https://twitter.com/m4rio_eth) -Backend engineer, Ethereum * [@pyro](https://twitter.com/BowtiedPyro) - Front end engineer, Solana * @hashdaan - Front end engineer * [@bbroeking](https://twitter.com/bbroeking) - Senior Backend engineer, Solana * [@klump](https://twitter.com/klump12_s) - Support and Backend engineer, Solana * [@Heron](https://twitter.com/BowTiedHeron) - Developer Relations ## 📂 Open-Source Contributors You can join our list of open-source contributors by following the instructions on our [Github](https://github.com/honey-labs). * @arcpinus * @Yuriagile * @Firefox * @bowtiedpickle * @SolBerenson * @Gonzalo * @azothzephyr * @sundeepcharan * @swan * @jayne * @TinyBigIdeas and a special thank you to [@0xSheik](https://twitter.com/0xCryptoSheik) , [@mmdhrumil](https://twitter.com/mmdhrumil) and [@rleshner](https://twitter.com/rleshner) 💛 Join us by developing on top of our [open-source code](https://github.com/honey-labs) # Roadmap {% hint style="info" %} **Ongoing**: Part of the current dev cycle **Upcoming**: Planned in an upcoming dev cycle **Past**: Completed in previous dev cycles **Exploring**: product specifications are not completed {% endhint %} ## Ongoing * [ ] Honey in-game asset support * [ ] Integrate speed improvements into SDK * [ ] Adding testing suite for SDK * [ ] API 2.0 * [x] New liquidation network * [ ] Subgraph of user positions * [ ] New NFT fetching logic ## Past dev cycle * UI/UX redesign * [x] Brandkit * [x] Landing page * [x] Server-Side Rendering (NEXT.JS) * [x] Skeletons FE render * Project Leviathan * [x] Partnerships * [x] Docs * [x] Programs - [x] Integrate new liquidation engine - [x] SDK documentation - [x] Audit w/ OtterSec - [x] UI improvements - [x] Dapp * [x] Borrow page * [x] Lending page * [x] Liquidate page * [x] Dashboard ### Previous * [x] HIP#4 ([learn more](https://forum.honey.finance/t/rfc-vesting-nfts-for-upfront-governance/394?u=tom)) * [x] Proposal draft * [x] Programs * [x] Testing * [x] Ethereum testnet deployment * [x] Solana beta launch * [x] Honey Research Centre * [x] P2P upgrade package (counter offers, improved rates, etc.) * [x] Solana devnet deployment * [x] Oracle integrations Ethereum + Solana (open source) * [x] HIP#3, HIP#2 and HIP#1 ([learn more](https://forum.honey.finance/c/governance-proposals/5)) * [x] Creation of Honey SDK ([open source](https://github.com/honey-labs/honey-sdk)) * [x] Project Varrock * [x] Build farm refresh tool for gemfarm ([open source](https://github.com/honey-labs/farm-refresh)) * [x] Project incorporation / legal review * [x] pHONEY conversion tool ([open source](https://github.com/honey-labs/veHONEY)) * [x] IDO platform ([open source](https://github.com/honey-labs/honey-ido-pool)) * [x] Liquidation overhaul * [x] Staking aggregator for NFTs ([open source](https://github.com/honey-labs/honey-frontend)) * [x] Updated veGovernance * [x] Creation of proprietary oracle * [x] NFT mint ## Upcoming * [ ] Ethereum alpha launch * [ ] Launch on BNB chain * [ ] Metaverse integrations ## Exploring * [ ] $HONEY insurance for grace periods * [ ] Permissionless pool creation tool * [ ] Metaverse integration * [ ] Yield vaults for NFT holders ([learn more](https://blog.honey.finance/honey-x-katana-94ba747e6487)) * [ ] Loan refinancing * [ ] Complex collateral # Branding Guidelines and assets for Honey protocol's branding ## Logo
Honey's full length logo + title
## Assets You can find all of our brand assets [here](https://drive.google.com/drive/folders/158BZWOuSylsvzBIv7uQuGQXiorTeXJXe) , including patterns, fonts, graphics, and logos. ## Guidelines You can find the guidelines to our branding here or in the PDF below. {% file src="/files/ndWJHFR2gXcCx94YG3aC" %} ## Colours Primary: HEX #E7B400 Orange: HEX #E78B00 Light grey: HEX #E5E5E5 ## Disclaimer Please do not edit, change, distort, recolour, or reconfigure the contents of our branding without our permission. If you plan on using Honey's brand assets for external communications, or if you have any questions, please contact us first at # Tutorials # Create a market Create an unverified market **Requirements for listing:** * Market admin must hold at least 50k veHONEY * NFT collection must use [metaplex standard](https://docs.metaplex.com/programs/token-metadata/token-standard) * Collection must have a Switchboard oracle or create one ## Step 1 - Create a market {% tabs %} {% tab title="NFT collection name" %} This will act as the name for your market. It can be changed at a later date by creating a pull request on github and pinging the Honey Labs team in our discord's builders channel. {% endtab %} {% tab title="Magic Eden link" %} This field allows the team and community to fill in any missing information about your collection by querying Magic Eden or your Solana marketplace of choice. It isn't used to run any of Honey's infrastructure, but instead ties your market to an existing collection. Using collections supported by Magic Eden makes creating an oracle much easier down the road, as you will be able to query floor prices via Magic Eden's API. {% endtab %} {% tab title="Verified Creator" %} {% hint style="info" %} **This step is critical. Inputing an incorrect verified creator will render your market unusable.** {% endhint %} Most NFTs using [Metaplex's NFT standard](https://docs.metaplex.com/programs/token-metadata/token-standard) will have one or more addresses listed as verified creators. Usually, this address will point to the candy machine which minted the NFTs. ## How to find the verified creator ? We recommend going to Magic Eden and finding the page associated to this particular collection. Once on that page, view the *details* page for that NFT. On the NFT's page, you can scroll down to *details* and find a field called **Mint address**. You can then pick whichever explorer you feel most comfortable with, this example uses Solscan: ![](/files/auKOyuS6kPnCSHl08QMy) On the explorer page for the NFT, you'll find a field called **Creators**. This will show the distribution of royalties, with the check mark indicating that a creator address is a verified creator address. In most cases, the verified creator with 0% royalties will be the candy machine used to mint the NFT. Select this address and input it into Honey's market creation tool. ## Which verified creator to pick ? In cases where your NFT collection has multiple verified creators, we recommend using the candy machine address. **If your verified creator address is used by more than 1 collection, you should NOT use it. As other collections sharing the verified creator address could then be used as collateral in your market.** Using the candy machine of a particular collection reduces this risk. {% endtab %} {% endtabs %} ## Step 2 - Setup an oracle {% hint style="info" %} Oracles are programs which value the collateral used in the market. Honey Labs recommends using two separate oracles per market, a price oracle, and a TWAP oracle to average the price. {% endhint %} {% tabs %} {% tab title="Collection has no oracle" %} ### Step 1 - Switchboard Navigate to [app.switchboard.xyz](https://app.switchboard.xyz) and select the **NFT Floor Price (SOL)** card in the popular collections list.
### Step 2 - Pick template Select any pre-made option. For this example, we will use the **Solana Monkey Business Floor Price** template which you can find [here](https://app.switchboard.xyz/template/aafff881-ef69-4867-bbda-cdf1ee83dc31/feed/948e6922f14acff92999605999667831c7b11ebc1472de4a9e7c103ac5744e07).

List of templates

Select the template by clicking the `Add to Cart` button followed by the `Configure feed` button in your cart.
### Step 3 - Configure your template Start by naming your new price feed. Get this out of the way right now so you don't forget to do it later:

Edit feed name

For this example, we'll create a price feed for the Anon Club NFT collection, and will thus name our new price feed **Anon Club Floor Price.** We now need to edit our feed to track Anon Club instead of SMBs. Click on the three dots menu item, and this time navigate to the`View Details` button. You'll notice that this template is fetching the SMB floor from 3 different sources (SMB marketplace, SolanaFloor, and Magic Eden). {% hint style="info" %} **Select the correct sources for your price feed.**\ **-** Make sure to source your floor price from marketplaces with high enough volume. Low volume marketplaces can have their floor prices be more easily manipulated.\ \- Sourcing from aggregators is a good idea. {% endhint %} ### Step 4 - Edit price feeds Once you are on the `View Details` modal of your price oracle, you should see an option to `Edit Feed` at the bottom right corner.

Edit Feed

This will allow us to input the sources which will inform the oracle about the collection's floor price. In our case, most of the volume for the Anon Club collection goes through Magic Eden, so we will get rid of the SMB marketplace price feed and the SolanaFloor price feed.

Click the X top right corner

We're now left with our Magic Eden price feed. If you click `Test` you'll see the floor price of SMB in SOL. To change this, swap the names of the Magic Eden collection:\ \ Becomes: \/stats\ \ Check Magic Eden's link for your NFT collection, and use the same suffix. In our Anon Club example, Magic Eden uses the link: so we replace \ with `888_anon_club`.\ \ Now if we click `Test`, we should get the floor price of Anon Club. {% hint style="info" %} By picking the SMB template, we already have a 3rd step in our ME price feed which divides the received value by the needed decimals using `DivideTask` and `Scalar`. {% endhint %} ### ### Step 5 - Checkout Once you are done configuring your price feeds, add it to your cart, and proceed to checkout.
Before you fund the oracle, you will need to tell Switchboard how long you want to fund it for, and how frequently you want it to update. The more often the oracle updates, the more expensive it will be. Lowering values such as Batch size will lower the cost of the oracle, as well as it's security. You can decide how frequently you want your oracle to update it's price. This is up to you and should be a function of your collection's volatility, but we generally recommend keeping it under 1 hour.

Expected volatility = update more frequently

You're all set ! You can now proceed checkout and fund the oracle with your phantom wallet. {% endtab %} {% tab title="Collection already has an oracle" %} Even if your collection has an oracle on Switchboard, it's strongly recommended that you create your own. Two oracles should exist for a market, a price oracle, tracking a floor price API for a given collection, and a TWAP oracle, which averages the given price over a set period of time. {% hint style="info" %} Technically, any integer value received from the oracle will work for your market. Oracles can provide a constant number, or be manually set (no API tracking). If you have a use for this, then you are free to do so. {% endhint %} ### Step 1 - Switchboard Navigate to [app.switchboard.xyz](https://app.switchboard.xyz) and select the **NFT Floor Price (SOL)** card in the popular collections list.
### Step 2 - Pick template Select the option that corresponds to the floor price of your NFT collection. {% endtab %} {% endtabs %} # Create a loan How to create NFT loans on Honey Finance {% tabs %} {% tab title="Step 1 - Connect" %} ### Connect wallet You will first need to connect your Solana wallet to the application. Simply click connect wallet, select your wallet provider, and approve the prompt from your wallet provider to connect to the website. ![](/files/iiJQklvsez9AqtzDVDdH) {% endtab %} {% tab title="Step 2 - Market selection" %} ### Select a market Head over to the borrow page, where you will see a list of available markets.
Each market serves an NFT collection, select a market for an NFT that you own, and your NFTs from the selected collection will show up on the right. {% endtab %} {% tab title="Step 3 - Select NFT" %} ### Choose an NFT Select an NFT from that collection, and click the `DEPOSIT NFT` button to deposit the NFT onto the platform. {% hint style="info" %} At the moment, markets are limited to 1 loan per wallet, to protect markets at launch. This means only 1 of your NFTs at a time can be used as collateral in a market. {% endhint %} ![](/files/5oLtJLv8AeviHjT3Eokg) \ Depositing the NFT creates a loan position, with a debt of 0 SOL. No interest is accruing until you borrow SOL. {% endtab %} {% tab title="Step 4 - Borrow" %} ### Borrow SOL After depositing an NFT into a market, you can now borrow liquidity from lenders. The NFT you have deposited serves as collateral. ![](/files/085oNeBZ2szrnFBMnzob) At the top left corner, you will find the **estimated value** of your collateral (NFT). This is value is read from Switchboard oracles, tracking the floor price of the collection. Below you will see your **risk level**, as this goes up, your loan is more likely to get liquidated. Keep this low to not lose your collateral. Your **allowance** is how much you can borrow from this NFT. ### Input a SOL value Use the slider to select an amount of SOL you would like to borrow. This will automatically tell you how much USD worth of SOL you will receive. ![](/files/b86EY1P05op8X0IsGcYB) \ The values to the right of the borrow form will update after you have selected a value. This is a preview of your position after you click `Borrow`. {% endtab %} {% endtabs %} # Repay a loan Pay back or close NFT loans on Honey Finance {% tabs %} {% tab title="Step 1 - Connect" %} ### Connect wallet You will first need to connect your Solana wallet to the application. Simply click connect wallet, select your wallet provider, and approve the prompt from your wallet provider to connect to the website. ![](/files/iiJQklvsez9AqtzDVDdH) {% endtab %} {% tab title="Step 2 - Market selection" %} ### Select a market Head over to the borrow page, where you will see a list of available markets.
Each market serves an NFT collection, select a market for an NFT that you own, and your NFTs from the selected collection will show up on the right. {% endtab %} {% tab title="Step 3 - Repay form" %} ### Access the repay form Once you select a market, you will be prompted with the borrow form of your current loan in that market. ![](/files/HCIe5xKGpeqO4mztfiSF) Select the `REPAY` tab at the top, to access the repay form. ![](/files/AXbaCWp0lIjbVYjxkTW8) {% endtab %} {% tab title="Untitled" %} ### Repay partially You can repay part of your debt in order to bring down your risk level and avoid liquidation. ![](/files/AcLQSgpWeTPVq4zarfXJ) On the repay form, the slider adds SOL to your position. As you slide it, you will notice the values on the right side change, giving you a preview of what your loan will look like if you confirm the repayment.
### Repay in full To fully repay your loan, and withdraw collateral, click on the `100%` at the right of the slider, or bring the slider all the way to the right.\ \ ![](/files/QgRv8nSqzqavzFIn4kde)
This will bring your risk level back to 0%, allowing you to withdraw the NFT. Click the `REPAY` button, and approve the wallet transactions.\ \ Once the transaction has gone through, you will see a `CLAIM NFT` button. Click it to receive the NFT you originally deposited back into your wallet.\ \ ![](/files/lQojA5fzXoo6Jxx1tQ5M) {% endtab %} {% endtabs %} # (OLD) pHONEY conversion tutorial Deposit pHONEY into the unlocked pool "Convert pHONEY" in order to trade pHONEY into HONEY at a 1:1 ratio. You will start to earn your HONEY after 24 hours and over the course of 3 weeks. If you deposit 100 pHONEY, you will start to earn (after 24 hours) 4.76 $HONEY per day every day for 3 weeks. {% embed url="" %} # (OLD) pHONEY locking tutorial Lock pHONEY into the locked pool "Vest pHONEY" in order to trade pHONEY into HONEY with a multiplier. Check the table above for conversion ratios. Select how much pHONEY you would like to deposit, then for how long you would like to deposit it for. The program will mint the right number of HONEY tokens at the conversion ratio you selected and will vest it for you. *Example: User locks 10 pHONEY for 12 months. 10 pHONEY is burned and 100 HONEY is minted, those 100 HONEY are vested for 12 months. User receives 25 veHONEY as per* [*veHONEY conversion*](https://docs.honey.finance/products/tokens/vehoney) *and can unlock the 100 HONEY in 12 months in exchange for their veHONEY.* {% embed url="" %} # Support Honey user driven support Users can choose below the area in which they need help, and fill in the information required and our Moderators can assist with any issues. \ \ Along with this our Development and Core team also assist with the support process to strive towards feed-back driven development.\ \ This is the process where our development team directly integrates the issues brought up in our tickets into their development cycle. Users, therefore , have a more direct impact on fixing bugs and UI/UX. \ \ Our support system is accessible to anyone on our discord, even without roles!\ \ Join here: \ Our ticket options include: * 💸Loan Support - For both lending and borrowing issues. * 🥩Staking Support - For issues relating to our Farms page and Gem Farm. * 🏛️Governance Support - Any issues relating to the veHoney token and our governance page. * 🤝Collaboration Support - For anyone that wants to collaborate with Honey DAO, our protocol, or anything pertaining to Honey! * 🧠Hivemind Support - For usage requests, API keys, or integration of Hivemind.sh. * 📩 General Support - Any issues that don’t pertain to the categories above. # FAQ # Farms FAQ Frequently asked questions about staking v3, staking as a service, and NFT farms ### What does locking do ? Locking starts the rewards for your NFTs. Once you're locked in, you're ready to go. If you're coming from v2, this lock button is the final step to complete the migration. This is made for collections who utilise the cooldown feature. Honey Genesis bee v3 farm has no cooldown period, so you can unlock at any time. ### Why is it more expensive ? Depositing NFTs into programs requires Solana to create a wrapper around your NFT called an [associated token account](https://spl.solana.com/associated-token-account). For this wrapper to exist on the blockchain, it needs to contain SOL in order for validators to not disregard it as spam. Solana calls this [rent](https://docs.solana.com/implemented-proposals/rent). When withdrawing, you get the SOL back. ### How do I stake in v3 ? There are a lot of extra or optional steps in staking v3, we've decided to launch without bundling these steps to showcase them individually, we will however bundle unnecessary steps in the future. For example, when you deposit multiple NFTs, we can go ahead and assume you're going to lock the vault. When you unlock, we can assume you're going to withdraw. These changes will be made to simplify the user experience. At the moment, following each of the steps looks like [this](https://www.loom.com/share/481f7560e5204a82be65eebf5c47a42e) ### What is a vault ? Your vault is a space on the blockchain where your NFTs are stored. Every farmer has their own vault which only they can withdraw from. The protocol (open source code) cannot mess with this as we don't have access to it. ### What are the options in Staking as a Service ? The base rate includes the following **options** for NFT projects looking to host farms on Honey Finance: * Rarity based staking * Fixed reward staking ( X # of tokens / NFT ) * Variable reward staking ( X # of tokens / farm ) * Unstaking cooldown * Delayed rewards * Tiered rewards based on time staked * Limit the number of NFTs that can be staked # Genesis Bee NFT FAQ ### **Do Genesis Bee NFTs directly participate in governance ?** Not directly, governance on Honey Finance is "time weighted". Bees receive HONEY which needs to be vested. Your governance power in the DAO depends on how long you're willing to lock up your HONEY into veHONEY. The answer is the same for potential revenue sharing or protocol rewards, it depends on how long you vest your HONEY rewards. The longer you vest, the more veHONEY you receive, thus the more of the rewards you will earn. {% hint style="info" %} You can read more about time weighted governance [here](https://docs.honey.finance/tokenomics/vehoney). {% endhint %} ### **How much $HONEY do Genesis Bees earn ?** Originally, 75 million $HONEY tokens were allocated to the bees to be distributed over 2 years. Since HIP#3, this has been extended to \~ 112.5 million tokens over the course of 10 years. If all NFTs are staked, maximum dilution would result in 10.27 $HONEY per day per NFT for the first 2 years, and would decrease by 50% every year thereafter. {% hint style="info" %} You can read more about HIP#3 by on our [forum](https://forum.honey.finance/t/hip-3-increased-allocation-of-honey-to-nft-holders/187). {% endhint %} ### **What are these NFT airdrops ?** Honey is at the intersection of DeFi and NFTs, and our DAO aims to explore all of the interesting possibilities that lie in the financialisation of NFTs. This can be building yield generating NFTs, structured product NFTs, and much more.\ \ When community members offer an NFT experiment, it will be voted by NFT holders. If the strategy passes and is created, the creator will earn 10% of all the revenue it generated, incentivising the community's brightest minds to create value for the NFT holders. Examples of NFT airdrops: * Wrapping veTOKENs into an NFT for liquid governance * Wrapping LP positions into an NFT for yield bearing assets * Access tokens for certain arbitrage opportunities or DeFi yield strategies * Early access to new protocol features, opportunities, or markets * Anything the community can come up with # Peer-to-Peer FAQ ## Borrower FAQ * **Who owns my NFT when in escrow ?** The protocol holds on to the NFT collateral in an escrow account. Nobody can withdraw from this account unless the loan is repaid or the loan is liquidated. * **What happens to airdrops during loan ?** When collateral is withdrawn, all tokens sent to the escrow can be claimed. This means airdrops during the duration of the loan go to whoever withdraws the collateral. ## Lender FAQ * **Are lender fees paid out during a liquidation ?** No lenders fees are applied during liquidations, only borrower fees paid at the beginning of the loan. ## Risks * **What if the floor of the NFT drops below the amount borrowed ?** The value of the floor is not relevant in the Honey P2P protocol, but it can incentivise borrowers to let their loans be liquidated, especially in cases where the floor drops below the amount borrowed. ## Verified collections * **How to get new collections verified ?** Collections can fill out [this form](https://tally.so/r/npbzL8) to apply for verification. Verifying collections on Honey P2P is at the sole discretion of the team and should take 3-4 days to go through. * **Are unverified collections safe ?** Honey P2P is permissionless, which means anybody and everybody can use it. This potentially includes scammers so always double check the information provided is correct. On the other hand, being verified is no guarantee of a project not being a scam or a rug pull. ## Payments * **What currencies does Honey P2P support ?** Honey P2P supports USDC. While it could support any SPL token (wSOL, SRM, SDHW, etc.) the protocol limits it to only one token to not segregate supply and demand. USDC is favoured over SOL to allow more complex loans and financial derivatives to be built in Honey P2P, which could not be denominated in volatile tokens. # Lending & Borrowing FAQ Frequently asked questions about lending and borrowing ### What is the grace period on Honey loans ? Honey loans do not include any grace period for the borrower. If loans are not repaid in time, the borrower will be immediately liquidated. This is to protect the solvency of lending markets, ensuring that lenders always have ready access to the liquidity they deposit in the protocol. The Honey DAO and its token holders do not take any of the risk at any moment during the loan, and simply serve to match lenders with borrowers, thus they do not hold on to collateral or risk during grace periods. # Farm addresses {% hint style="info" %} You can access these farms through the gem-farm UI [here](https://gem-farm-honey.vercel.app). {% endhint %} ### Active farms
CollectionFarm address
Atadians1G72FGcqtc3ZbC8guy87rMB7MSeEpce7FDgW3es8RdY
ChingariJAdPgH7EbnAZczF3qSrn2qppdHRweEKhv47zxnSMdakt
CubistsDT7GL8qwvSgLEy1jxXqDjjnzYMtLuivSVjjrUHnyUmKD
HoneyHaparmtd9Si4Wp4jke5CdaqLduqm22fhrn3QiD2xC6wY
Hobo FrenzBRLvosEMtto9RBqrPNqf4snrP9xWPSTYamQbLjbJEgaY
Kozy Koalas6ktAbBBPHVyfMMpxhBoDraKMsjbXiJeWshGKXP76VJZQ
Skeleton Crew6Xq5nXkBLHwoVAiELfSSFsEc1SsHXhjBtCQBqZMaGUcq
### Deprecated farms
Atadians (OLD)3yR4hroSjQqvCePRry2yJMPynLTfhK252yuCZBTk3Hvr
Honey (OLD)7S4C6uABB5gxBxR9UGWq27qLPzFPs9hbzmWrfeaPRrcC
Baby Dino KingzGA3FqVoGY1mL6JeTVm27i4cHoD9Ma6gusCcT8ndjff6y
Dino KingzEprGa9AxU7PW113kctorXY9kkJDmdooPHnNSRHB4eg7f
New Bat CityEiqwoUUgDxpUK481wadNaQVR6Rr1W6365rshRPwr5tiW
# FAQ Legal Questions The perhaps disappointing answer to many of these questions is: it depends. Many variables come into play when using DeFi. What is your legal and/or financial jurisdiction ? Are you a citizen of the United States ? if so which state ? etc. Thus this list of guidelines is more indicative than anything else, and should help you find the proper legal council to verify that you are acting in a lawful manner when using DeFi. Nothing in this documentation should be misconstrued as legal advice, and its authors are not legal advisors in any legal or financial jurisdiction. Please beware of self-proclaimed DeFi legal experts and pundits which you may find on social media or in our social channels. We encourage you to only listen to legal advisors of the appropriate jurisdictions. ## What is the protocol's financial jurisdiction ? Honey Finance operates in a decentralised manner. Smart contracts (programs) which allow for the protocol's transactions to occur run on a blockchain completely independently from the builders who created them. As these smart contracts (programs) reside on a blockchain, they can be accessed by anybody in the world without any force being able to intervene. We thus encourage users to make sure that they are indeed capable of using the platform in a lawful manner. Honey Development Association (which houses the builders and contributors of the protocol) is based in Geneva Switzerland and abides by Swiss and International laws. It is not a financial entity or bank, its role is simply to write code on behalf of the DAO and to grow the DAO. ## Is it legal to own bees in the United Sates ? While we will let US attorneys answer that question, there are a few points we'd like to remind everyone. NFTs only yield $HONEY tokens if and when they are staked. An unstaked Honey NFTs is simply metadata that points to a JPEG. Whether the potential yield is part of the intrinsic value of that NFT is up to regulators to decide, however any NFT can receive any kind of yield, as long as someone funds a farm which can emit tokens to a collection. Securities are not illegal, but trading unregulated securities is. So bear this in mind when selling and trading NFTs (in general). ## Am I allowed to use the protocol in the United States ? While the NFT staking platform is available to US residents, the lending and borrowing protocol is not. This is not motivated by any particulars laws that we know of, but is instead a forward looking decision on behalf of the team, who feels that the regulatory environment in the United States carries an antagonistic view on DeFi, which we want no part of. US residents are warned of this when entering the app, however they are not geoblocked. As these programs can be interacted with on the blockchain, and consists of open source code which can be run by anyone, the [app.honey.finance](https://app.honey.finance) front end is just one of many access points for people can decide to use for engaging with the protocol. What matters is not that you visit our website, but that you engage and transact with the programs. Many DeFi protocols are in fact prohibited to US residents, such as Serum, Yearn and others. To learn more about the SEC's view on DeFi, we recommend [further reading](https://www.sec.gov/news/statement/crenshaw-defi-20211109). ## \[This document is currently a draft, made public while pending legal review. At this moment, none of it consists of Honey's official stance on the subject.] # Terms and Conditions !\[Une image contenant casque, graphiques vectoriels, clipart Description générée automatiquement]\(file:////Users/tompandolfi/Library/Group%20Containers/UBF8T346G9.Office/TemporaryItems/msohtmlclip/clip\_image001.jpg) **Honey Development Association** **Honey Tokens Sale Terms & Conditions** Last revised: 30th March 2022 These Tokens (as defined below) Sale Terms and Conditions (the “**Terms and Conditions**”) are the terms and conditions upon which the Seller (as defined below) will sell the Tokens to the Buyer (as defined below). Please read this Agreement carefully before purchasing Tokens, as it sets out and explains Your legal rights and obligations including waivers of rights and limitation of liabilities. By purchasing Tokens, you will be automatically bound by these Terms and Conditions and the purchase of the Tokens is subject to it. **We strongly recommend that you do not purchase Tokens if you are not an expert in cryptocurrencies and blockchain technology. Even if you have knowledge of the technology, you should consult your own lawyer, accountant, and other professionals whereso required. The Seller will not be responsible in any way for any loss incurred by you resulting from the purchase of these Tokens.** **By purchasing Tokens, you shall be deemed to acknowledge that you do so with full consent and full knowledge of these Terms and Conditions having first obtained legal advice as to the full force and effect of these Terms and Conditions. Your participation will be deemed to be your undertaking that you satisfy this requirement and shall be deemed to be your unequivocal and express agreement to be bound by these Terms.** Only after that the Token Sale has been completed and the project described in the Information implemented, the Buyer of these Tokens will have access to the Services. **BACKGROUND** Please visit the Website and read the Information (as defined below) for yourself. The Website and the Information provide a non-binding description of the Protocol currently being developed and the Services that will be offered by the Protocol. **DEFINITIONS** **Agreement** – this Agreement exclusively and no other. **Blockchain** – the underlying blockchain technology on which the Tokens are issued, i.e. Solana. By extension, it also refers to every blockchain technology the Seller or Buyer may use. **Buyer** – the purchaser of the Tokens, “Purchaser” “purchaser” “you”, “You” “your”, or “yourself”. **Information** – the description on a non-binding basis of the Protocol and the Services available on the Website. The Information may be modified and changed from time to time. **Interface** – means the current interface allowing interaction with the Protocol, , and any other interface which may be developed in the future by the Seller or any other person. **Prohibited Person** - persons from the following countries: Afghanistan, Albania, Angola, Azerbaijan, Bosnia and Herzegovina, Bahamas, Barbados, Burma, Botswana, Burkina Faso, Burundi, Cayman Islands, Cambodia, Cameroon, Donetsk, Luhansk and Crimea (Ukraine), Chad, China, Congo, Congo (Democratic Republic), Cuba, Ethiopia, Eritrea, Fiji, Palau, Ghana, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Jamaica, Jordan, Lao people Democratic Republic, Liberia, Libya, Madagascar, Malia, Mozambique, Nicaragua, Uganda, Nigeria, Korea North, Pakistan, Panama, Puerto Rico, American Samoa, Senegal, Somalia, South Sudan, Sri Lanka, Sudan, Syria, Tajikistan, Trinidad and Tobago, Turkmenistan, Uganda, United States, Uzbekistan, Vanuatu, Venezuela , Virgin Islands (United States), Yemen, Zimbabwe. **Protocol** – means “Honey”, the autonomous, decentralized and open source protocol, originally developed by the Seller, released to the public, which notably enables the use of the Tokens and the Services, as described in the Information, notably accessible through the Interface. **Seller** – Honey Development Association, a Swiss law governed association within the meaning of Articles 60 et seq. of the Swiss Civil Code, with registered office in Route de Gilly 30, Rolle, 1180, Vaud, and “Us”, “We” or “Ours” in these Terms and Conditions. **Services** - means the services that are and will be provided by the Protocol, as described in the Information, notably accessible through the Interface. **SOL** – means the native tokens of the Solana blockchain. **Terms and Conditions** - the terms and conditions contained in this Agreement. **This Jurisdiction** - means Switzerland. **Tokens** – the Honey Native Fungible Tokens, built on the Solana blockchain, which are digital assets which facilitates or provides access to the Services offered by the Protocol, as described in the Information. This Tokens shall not be confused with the Honey Native Non Fungible Tokens. **Token Sale** - means the present Tokens sale. **Token Sale Period** – means the sale period during which Tokens are available for sale, i.e. a period of 24 hours, starting on 17:00 hour March 30th UTC and ending on 17:00 UTC on March 31st 2022, on the following website **Website** – means or (as amended or changed from time to time) **RECITALS** WHEREAS, the Seller developed and is developing the Protocol. WHEREAS, the Seller will issue and sell the Tokens. WHEREAS, the Buyer wants to purchase the Tokens and acknowledges and agrees to abide by the Terms and Conditions. NOW THEREFORE, in mutual consideration of the covenants and agreements contained herein, the Seller and the Buyer agree as follows: **INTERPRETATION** Unless the context of this Agreement otherwise requires: \- words of any gender include all other genders; \- words using the singular or plural also include the plural or singular respectively; \- the terms “hereof”, “hereby”, “hereto” and derivatives of similar words refer to this entire document; \- the word “including” shall mean “including without limitation”. The Terms and Conditions are only in respect of the sale and purchase of the Tokens. Any potential future use of the Tokens is in connection with the Services provided by the Protocol may be governed by other applicable terms and conditions. **1. SERVICES** **1.1.** The Buyer acknowledges and agrees that the Tokens will be used on the Protocol to incentivise liquidity in the Protocol, pay back lenders in case of bad debt, facilitate liquidations or create 0% fee lending markets, and any other use decided by the governance of the Protocol. **1.2.** The Buyer, upon purchasing Tokens, acknowledges and agrees that they will not have any rights in, shares, security, ownership or any such other rights or any future rights to receive them, nor any intellectual property rights in the Seller and its affiliates. **2. THE TOKENS** The Tokens are not intended to be any form of: \- security; \- commodity; \- any form of financial instrument; or \- investment. Buyers should have no expectation of rights to the Seller’s earnings nor other interests in the Seller such as dividends. Buyers should have no expectation of price appreciation whatsoever. Nothing in these Terms and Conditions shall be considered to constitute a prospectus of any sort whatsoever or a solicitation of investment of any kind. These Terms and Conditions are not an offering to buy or sell any securities in any jurisdiction. Buyer declares that the Seller has not solicited it in any form whatsoever to sell Tokens. **3. DEVELOPMENT** **3.1.** In purchasing the Tokens, the Buyer acknowledges, agrees and fully understands that the Services are still in the development stage. **3.2.** The Buyer acknowledges and agrees that the development of the Protocol may give rise to changes in the Services. **4. OFFER AND SALE** **4.1.** The Seller offers for sale to the Buyer Tokens in accordance with the Terms and Conditions. **4.2.** The Buyer agrees to purchase Tokens offered for sale from the Seller in accordance with the Terms and Conditions. **4.3.** The Buyer will, during the Token Sale Period, be able to deposit and/or withdraw USDC into a smart contract vault deployed by the Seller deployed on the Solana Blockchain (the “**Vault**”), the address of which will be released by the Seller to the public in the Information, to bid for the Tokens. **4.4.** During the same Token Sale Period, the Buyer will also be able to further deposit USDC in the Vault to increase his/her/its bid or to withdraw USDC from the Vault if he/she/it wants to reduce his/her/its bid. **4.5.** At the end of the Token Sale Period, all USDC deposited by the Buyer in the Vault shall be deemed to correspond to the amount the Buyer wishes to use to purchase the Tokens, and therefore become firm and irrevocable order to purchase the Tokens, at the price mentioned below in Clause 5. **4.6.** The number of available Tokens is entirely the preserve of the Seller. **4.7.** The Token Sale Period may be subject to change at the sole discretion of the Seller. **4.8.** The Seller may terminate the Token Sale Period earlier at any time for any reason at its sole discretion. **5. OFFER PRICE** **5.1.** The price per Token will be determined by the ratio between the number of Tokens deposited by the Seller in the Vault for sale and the amount of USDC deposited by Buyers in the Vault at the end of the Token Sale Period. **5.2.** The Seller does not give any guarantee that the price will remain static and it may change from time to time. **5.3.** Buyers shall only bid and pay for the Tokens using USDC. **5.4.** For the avoidance of doubt, the purchase price is per Tokens, multiplied by the number of Tokens purchased. **6. TOKEN PURCHASE PROCEDURE** **6.1.** The Seller reserves the right to amend and modify this Token Sale procedure at any time. **6.2.** Full instructions and procedures are provided in all or part herein and in the Information. **6.3.** Authorised payment method: USDC only. **6.4.** Failure to follow the instructions and procedures provided by the Seller or payment by any other means than those authorized are not accepted by the Seller. **6.5.** The Buyer acknowledges and agrees that upon completion of the purchase of Tokens, to the fullest extent applicable under law, no refunds and/or cancellations are permitted unless agreed in writing by the Seller. **6.6.** The Buyer acknowledges and agrees that he or she will accept the amount of Tokens allotted by the Seller at the end of the Token Sale Period. **6.7.** In the event that the purchase of Tokens is not completed or fails for merely technical reasons, the Seller agrees to return to the Buyer any amount paid, less any reasonable transaction costs, to the originating source only. This Clause applies if the transaction is not subsequently completed. **6.8.** The Seller reserves the right to refuse a bid for Tokens on any grounds. **6.9.** The Seller may determine, at its sole discretion, that it is necessary to obtain certain information about the Buyer in order to comply with applicable laws or regulations in connection with selling Tokens to the Buyer. The Buyer agrees to provide the Seller with such information promptly upon request. The Buyer acknowledges that the Seller may refuse to sell Tokens to the Buyer until the Buyer provides such requested information and has determined that it is permissible to complete the purchase. **7. DELIVERY AND WALLET** **7.1.** By using its/his/her Solana blockchain address, the Buyer will be able to claim and receive the purchased Tokens by interacting with the Vault directly on the Solana Blockchain. The purchased Tokens will be automatically transferred from the Vault’s address to the Solana Blockchain address of the Buyer. The Buyer shall pay the transaction fees (such as gas fees) required for the interaction(s) with the Vault (i.e. claiming and receiving the Tokens). **7.2.** The Seller reserves the right, at its sole discretion, to extend the time of release of the Tokens for technical, cybersecurity or other relevant issues it reasonably believes may affect the delivery time. **7.3.** The Buyer expressly acknowledges that the Tokens will not be sent directly by the Seller and may only be received through interactions with the Vault. Therefore, the Buyer understands that it is its/his/her responsibility to claim the Tokens, and that the loss of the private key (or other equivalent credential) corresponding to the Solana blockchain address mentioned above may impair its/his/her ability to receive the Tokens that it/he/she purchased. The Seller shall not be responsible for the loss incurred by the Buyer in the event of a loss of the private key (or other equivalent credential). **7.4.** For the avoidance of doubt, the Seller’s obligation to deliver the Tokens will be materialized by the deployment of the Vault, as long as, by interacting with the Vault, the Buyer is able to claim and receive the exact quantity of Tokens purchased. **7.5.** The Tokens are non-refundable under any circumstances and the Seller gives no guarantee and makes no representations as to the future value of the Tokens. **7.6.** The Buyer must keep the wallet and its security protocols safe and not share them with any other person. **8. PROHIBITED PERSONS** **8.1.** Prohibited Persons shall be ineligible to purchase Tokens during the Token Sale\[SD1] Period. **8.2.** Persons under the age of 18 shall be ineligible to purchase Tokens during the Token Sale Period. **8.3.** Politically Exposed Persons (PEP) shall be ineligible to purchase Tokens during the Token Sale Period. **9. ACKNOWLEDGEMENT OF RISK** **9.1.** You represent and warrant that You fully understand and have significant experience of cryptocurrencies, digital assets, blockchain systems and services, and You fully understand the risks associated with the trading of cryptocurrencies and digital assets as well as the mechanics related to the use of such cryptocurrencies and digital assets (including with respect to their storage and exchange). **9.2.** You acknowledge that trading markets are extremely volatile and shift quickly in terms of liquidity, market depth, and trading dynamics. **9.3.** You represent and warrant that You are not entering into transactions that are above Your financial abilities. Also, cryptocurrencies and digital assets are not suitable for people without the relevant knowledge and/or experience. You further represent and guarantee that You are aware of the risks related to cryptocurrencies and digital assets, for which You are solely responsible and liable. **9.4.** The Buyer acknowledges and agrees that there are risks associated with purchasing Tokens, owning Tokens, and using Tokens for the provision or receipt of Services. By purchasing Tokens, the Buyer expressly acknowledges and assumes these risks. **9.5.** The Buyer acknowledges and agrees that he or she understands that he or she may lose some of or all of his or her contribution in this Token Sale. **9.6.** The Buyer acknowledges and agrees that he or she has no right to obtain a refund of his or her contribution, or otherwise cancel his or her purchase of the Tokens obtained via this Token Sale, once such purchase is completed due to the uncertainties of the value to be attributed to the Tokens once purchased and/or the fluctuations inherent in the value of digital asset generally **9.7.** The Buyer acknowledges and agrees that he or she has sufficient understanding and knowledge of the technical and business matters (including those being developed by the Seller, cryptocurrency storage systems, e.g., wallets) to understand this Token Sale and to appreciate the risks and implications of purchasing Tokens. **9.8.** The Buyer acknowledges and agrees that he is aware that cryptocurrencies and digital assets operate in a network without intermediaries and do not benefit from legal tender, unlike currencies issued by central banks. Their value is not guaranteed and depend on unregulated markets. Therefore, You acknowledge and agree that if the Protocol and the Services are finally not developed or cannot function properly, the Tokens will not be refunded which is a significant risk that You accept. Moreover, there is no guarantee of liquidity with respect to the Tokens as well as the existence of a secondary market. As a result, The Buyer may not be able to sell its Tokens easily or at prices that would provide him with a valuation gain comparable to similar investments benefiting from a developed secondary market. **9.9.** You represent that You have read, understood, and agreed to all the risk factors attached as Annex to these Terms and Conditions. **Risk Factors** **9.10.** You represent that You have read, understood, and agreed to all the risk factors attached as Annex to these Terms and Conditions **10. REPRESENTATION, WARRANTIES AND COVENANTS** You hereby agree that by purchasing the Tokens, you warrant and represent the following to be true: **10.1.** You are not a consumer. **10.2.** You are not a Prohibited Person. **10.3.** You are not a Politically Exposed Persons (PEP). **10.4.** You are legally permitted to purchase and hold the Tokens in your jurisdiction. **10.5.** You have not received advice from the Seller regarding purchasing the Tokens. **10.6.** You are of legal age to purchase and hold the Tokens and are not aware of any legal reason preventing you from so doing in your jurisdiction or in this Jurisdiction. **10.7.** You are of sound mind and have the requisite power and authority to understand and agree to these Terms and Conditions and to carry out and perform the obligations as set out hereunder. **10.8.** The funds you provide have not been derived from or related to any unlawful activity including but not limited to money laundering, terrorist financing. **10.9.** You agree that you will not use the Tokens, Website, Services or Protocol for unlawful purposes, including, but not limited to, sending or storing any unlawful material or for fraudulent purposes. **10.10.** You will not use an account that is subject to any rights of a person other than you without appropriate authorisation. **10.11.** You will not impair the proper operation of the Protocol. **10.12** You will keep secure and confidential your account password or any identification we provide you which allows access to any of the account or Token(s). You will only use an access point or other data account which you are authorised to use. **10.13.** You hereby note you are solely responsible for your own tax liability, if any, in relation to the Tokens which may adversely affect you including but not limited to withholding taxes, income tax, VAT, CGT or other applicable taxes **10.14.** You hereby note that you have sole responsibility for the acquisition, appreciation or depreciation of the value of the Tokens. **10.15.** You will hold a suitable online or offline wallet or storage mechanism to support the Tokens. **11. LIMITATION OF LIABILITY** **11.1.** To the maximum extent permitted by law and any regulatory provisions to which We are subject to, You acknowledge and agree that the entire risk arising out of Your participation in and purchasing of the Tokens is entirely Yours and remains with You at all times, before, during and after such risk may apply. **11.2.** Neither We nor any other party involved in the creation, production, or delivery of the Tokens will be liable, in any way, for any incidental, special, exemplary, legal (reasonable costs) or consequential losses or damages, this to include but not exclusively, loss of profits, loss of data (excluding personal data, which specific policies are stated in our privacy policy), loss of goodwill, service interruption, computer damage or system failure or the cost of substitute products or services, or for any damages whatsoever of a personal nature, arising out of or in connection with these Tokens whether or not they are based on warranty, contract, tort, this to include negligence, product liability or any other such thing, whether or not We have been informed of such matters and the possibility of any such damages or alike, this also, even if a limited remedy set forth and contained in these Terms and Conditions has failed or could fail, because of essential purpose. **10.3.** Our aggregate liability for any circumstance or event arising out of or in connection with these Terms and Conditions will be limited to, and will in no event exceed, the amount You have paid to claim and purchase the Tokens during the Token Sale. The limitations of damages set forth in this Clause is a fundamental element of the basis of the bargain between Us and You. **11.4.** The Seller will not be liable, under any circumstances, for any loss or damage incurred by the Buyer in respect of any breach of security in respect of his password, account number and secret codes. **11.5.** You agree to release, indemnify, and hold Us and Our contractors, sub-contractor, affiliates and subsidiaries and agents and their officers, directors, employees and agents, harmless from and against any claims, liabilities, damages, losses, and expenses, including, without limitation, reasonable legal and accounting fees, arising out of or in any way connected with Your violation of any of these Terms and Conditions. **12. DISCLAIMERS** **12.1.** If you choose to purchase Tokens, you do so entirely at your own risk. **12.2.** You acknowledge and agree that we do not have any obligations, whatsoever, or under any circumstances, to conduct any checks not required by applicable law, including but not limited to, background checks, on any Buyer. **12.3.** You hereby acknowledge and agree that the Tokens and the Protocol are made available “as is” and “as available”, with no warranties of any kind whatsoever and that, without prejudice to the generality of the foregoing, we make no warranty regarding, and shall have no responsibility for, the accuracy, availability, reliability, security, fitness for purpose or performance of the same. **12.4.** We make no warranty that the Token Sale, including but not restricted to, any information provided via any communication will meet Your requirements or will be available or made available in an uninterrupted, secure or error-free basis. **12.5.** We make no warranty in respect of the quality of any content, truthfulness, completeness or reliability of any content obtained through the Website. **12.6.** No advice or information, whether either oral or in writing, obtained from Us or Our Website will create any warranty expressly or otherwise, herein. **12.7.** We disclaim any liability for interruption, delay or errors in use and is not liable for any loss whatsoever whether direct, indirect or consequential loss. **12.8.** The Seller does not guarantee, warrant or represent that any item downloaded from the Internet on the Website is free from viruses. You are explicitly responsible for implementing appropriate procedures, anti-virus protection and software to protect yourself and your data. In this regard, The Seller is not liable for any damage caused to your equipment due to the use of the Website or through material posted on or linked to any Website. You should also be aware that SMS and email services are vulnerable to spoofing and phishing attacks and should use care in reviewing messages purporting to originate from us Your use is entirely at your own risk. **12.9.** The Seller bears no responsibility for the success or otherwise of the Tokens, You hereby acknowledge that the Tokens is in development stage and therefore the Seller cannot provide any warranty whatsoever in relation to the success or otherwise of the Tokens. The Tokens may have no value and you as Purchaser may lose all amounts paid. The Purchaser agrees, understands and assumes all risks in relation to purchase price. **12.10.** The Website may contain links to third-party websites, advertisers, services, special offers, or other events or activities that are not owned or controlled by us. We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services. If you access a third-party website from the Website, you do so at your own risk, and you understand that these Terms and Conditions do not apply to your use of such sites. You expressly relieve us from any and all liability arising from your use of any third-party website, service, or content. Additionally, your dealings with or participation in promotions of advertisers found on the Website, including payment and delivery of goods, and any other terms (such as warranties) are solely between you and such advertisers. You agree that we shall not be responsible for any loss or damage of any sort relating to your dealings with such advertisers. **12.11.** The regulatory status of the Tokens, remains unclear or unsettled in many jurisdictions. Indeed some jurisdictions may implement legislation that will affect the Tokens, The Seller accepts no liability in relation to regulatory action that may be taken or which may affect the Seller in the future. Furthermore the Seller may cease operations in a jurisdiction which takes regulatory action, changes laws adversely or makes it commercially undesirable to trade in such jurisdiction. **12.12.** The Buyer acknowledges and agrees that the purchase of Tokens does not give the Buyer any rights in the form of equity or debt interest in the Seller and/or its affiliates. The Buyers rights are strictly limited to those set out under these Terms and Conditions. **12.13.** The Buyer acknowledges and agrees that in purchasing these Tokens, the Buyer is subject to and bound by these Terms and Conditions, as may be amended from time to time. **12.14.** The Buyer acknowledges and agrees that to the fullest extent permitted under applicable law, nothing in these Terms and Conditions represents or warrants any form of performance of the purchased Tokens. They are strictly for the use described in these Terms and Conditions. **12.15.** The Buyer acknowledges and agrees that the Buyer may only access the Website using authorised means. The Seller is not liable if you do not have a compatible device, computer, operating system, browser, or any other software or hardware with which the technology is not compatible. **13. CHANGES TO THIS AGREEMENT** **13.1.** These Terms and Conditions may be revised or updated from time to time. Accordingly, you should check the Terms and Conditions for updates. You can determine when the Terms and Conditions were last revised by referring to the “Last Revised” legend at the top of this document. **13.2.** Each time you purchase of any Tokens, You signify Your acceptance of the then-current Terms and Conditions. **13.3.** Any changes in these Terms and Conditions take effect upon posting and apply only to the purchase of any Tokens on and after Last Revised date. **13.4.** We may make changes to the Terms and Conditions of the Token Sale at any time. **14. MISCELLANEOUS** **13.1.** Any reference to statute, enactment, order or regulation or other similar instrument made in this Agreement, shall be construed as a reference or instrument as it is force for the time being taking into account any amendment, extension, application, consolidation or re-enactment and includes all and any subordinate legislations for the time being in-force. **13.2.** In the event that one or more of these Terms and Conditions or any part thereof being or becoming invalid, illegal or unenforceable in any respect, it shall to the extent of such invalidity, illegality or unenforceability be deemed to be severed and removed and all remaining terms shall remain in full force and effect. **13.3.** This Agreement constitutes the entire Agreement (this to include any other provisions referred within this Agreement) and supersedes any and all previous agreements. **13.4.** The Seller shall not bear any liability for any failure or delay in the performance of its obligations under this Agreement if such delay or failure to perform is due to any Force Majeure. For the purpose of this Agreement, Force Majeure shall be defined as any act, omissions, cause or circumstance beyond the reasonable control of the Seller, this to include without any limitations: acts of god, war, national emergency, protests or rebellion, civil commotion, riots or strikes and any form of industrial dispute (whether or not involving either party’s work force), earthquake, flood, drought, epidemic, fire, explosion, act of terrorism, or any other act ordered by any government, council or constituted body. **13.5.** Any waiver of any breach of this Agreement by the Seller, or any default, under any provision of the Agreement by the Buyer shall only be valid if agreed in writing. Any further or subsequent breach or default by the Buyer whether similar or otherwise shall in no way affect this Agreement. Similarly, any failure or delay, by either Party to this Agreement, to insist upon strict performance of any of the provisions of the Agreement shall not be construed as a waiver of any of its rights, under this Agreement. **13.6.** These Terms and Conditions contains all of the terms which the Parties have agreed to in relation to the purchase of Tokens and the Terms and Conditions supersede any prior written or oral content, agreement, representations or undertakings between the Parties or made by third parties. It is acknowledged by the Purchaser that they have not acted, relied on or been induced to enter into the purchase of Tokens by reason of any representations made by or on behalf of the Seller. **13.7.** The Seller reserves the right to assign our rights and duties under these Terms and Conditions to any person at any time without notice to you, nor will we contact you or seek your approval on any such assignment. **15. LAW AND JURISDICTION** **14.1.** These Terms and Conditions shall be governed and construed in accordance with the laws of Switzerland. **14.2.** You acknowledge and accept that in the event of a claim or dispute, they shall be submitted to the exclusive jurisdiction of Swiss courts in the canton of Vaud.
**Annex** **Risk Factors** Risk of loss of access to a Token due to loss of credentials The loss of credentials will result in the loss of the Tokens. Good practices advise Buyers to store their credentials securely in one or more backup locations that are geographically separated from the work location. Any third party that obtains access to the Buyer’s credentials or private keys may be able to use the Buyer’s Tokens. To minimize this risk, Buyers must protect themselves against people gaining unauthorised access to their electronic devices. Risks Associated with the Solana blockchain Tokens are based on the Solana blockchain. Therefore, any malfunction, unplanned function or unexpected operation of the Solana blockchain may cause the Protocol or Tokens to malfunction or operate in a way that is not expected. SOL may itself lose value in a similar way to Tokens, and also in other ways. Legal risk and risk of adverse regulatory intervention in one or more jurisdictions DLT technologies have been reviewed by various regulatory bodies around the world. The operation of the Protocol and of Tokens may be impacted by the passing of restrictive laws, the publication of restrictive or negative opinions, the issuing of injunctions by national regulators, the initiation of regulatory actions or investigations, including but not limited to restrictions on the use or ownership of digital tokens such as Tokens, which may prevent or limit the development of the Protocol. Given the lack of cryptocurrency qualifications in most countries, each Buyer is strongly advised to carry out a legal and tax analysis concerning the purchase and ownership of Tokens according to the laws applicable to their nationality and place of residence. Risk of an alternative, unofficial ecosystem Following development of the original version of the Protocol, the official Protocol may find itself in competition with alternatives, unofficial protocols, which could potentially adversely impact the Protocol and Tokens. Risk of a lack of interest in the Protocol or distributed applications There is a possibility that the Protocol may not be used by a large number of individuals and other organizations, and that there may be a limited public interest in the creation and development of distributed applications. Such a possible lack of interest could eventually impact on the development of the Protocol and, therefore, on the uses or potential value of Tokens. Risk that the Protocol is not developed The rights associated with Tokens are exclusively limited, in their scope, to the Protocol. The value of the Tokens is therefore heavily correlated with the existence of such Protocol. Tokens may lose part or all of their value if the Protocol is never fully developed. Risk that the Protocol, as developed, does not meet user expectations The Protocol is currently under development and may undergo significant redesign prior to its full launch. For several reasons, not all user expectations concerning the Protocol or Tokens’ form and function may be met on the launch date, including changes in design, implementation, and execution of the Protocol. Risk of theft and piracy Hackers or other malicious or criminal groups or organizations may attempt to interfere with the Protocol or the availability of Tokens in several ways including, but not limited to, denial of service attacks, Sybil attacks, mystification, surfing, malware attacks, or consensus-based attacks. Risk of security weaknesses in the Protocol’s core infrastructure software There is a risk that the Seller team, or other third parties, may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructure elements of the Protocol, by interfering with the use of, or causing loss of, Tokens. Risk of weakness or exploitable breakthrough in the field of cryptography Advances in cryptography, or technical advances such as the development of quantum computers, may present risks for cryptocurrencies and the Protocol, which could result in the theft or loss of Tokens. Risk of the Protocol failing to be used or adopted While Tokens shall not be considered an investment, their value is bound to change over time. This value may be limited if the Protocol is not sufficiently used and adopted. In such a case, there could be few or no markets at the Protocol launch, which would limit the value of Tokens. Risk of a tight market for Token There are currently few exchanges or trading facilities on which Tokens can be traded. Such exchanges or trading facilities will probably be relatively new and subject to poorly understood regulatory oversight. They may therefore be more vulnerable to fraud and default than the established and regulated exchanges that exist for other products. Should exchanges or trading facilities that represent a substantial part of the Tokens trading volume be involved in fraud, security failures or other operational problems, the failures of such exchanges or trading facilities may limit the Tokens value or liquidity. Liquidity Risk There is no assurance that a secondary market will develop and that the holders will be able to sell their Tokens. Risk of an uninsured loss Unlike bank accounts or accounts in other regulated financial institutions, funds held through the Seller or Solana blockchain are generally uninsured. At present, there are no public or private insurance agents providing Buyers with coverage against a loss of Tokens or a loss of value. Risk of malfunction in the Protocol The Protocol may be impacted by an adverse malfunction including, but not limited to, a malfunction that results in the loss of Tokens or market information. Unforeseen risks Cryptocurrencies and cryptographic tokens are a new and untested technology. In addition to the risks stipulated above, there are other risks that cannot be predicted. Risks may also arise out of and/or occur as unanticipated combinations or as changes in the risks stipulated herein. If you are in any doubt as to the action you should take and the consequences it will involve, please consider consulting your legal, financial, tax or other professional advisor(s) for necessary advice. *** \[SD1]A mettre à jour le cas échéant sur la base de la liste Synaps # NFT sale disclaimer ## **Honey Development Association** *Disclaimer* The information in this disclaimer is subject to change or update and should not be construed as a commitment, promise or guarantee by Honey Development Association or any other individual or organisation mentioned in this disclaimer relating to the future availability of services related to the use of the native honey non fungible tokens (NFTs) and native honey fungible utility tokens ($Honey) or to their future performance or value. The document does not constitute an offer or solicitation to sell shares or securities. It does not constitute or form part of and should not be construed as any offer for sale or subscription of or any invitation to buy or subscribe for any securities not should it or any part of it form the basis of or be relied upon in any connection with any contract or commitment whatsoever. Honey Development Association expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from reliance on any information contained in the disclaimer, any error, omission or inaccuracy in any such information or any action resulting therefrom. This is not a recommendation to buy or financial advice. It is strictly informational. Do not trade or invest in any tokens, companies or entities based solely upon this information. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. Investors should conduct independent due diligence, with assistance from professional financial, legal and tax experts, on topics discussed in this document and develop a standalone judgment of the relevant markets prior to making any investment decision. We have prepared all information herein from sources we believe to be accurate and reliable. However, such information is presented “as is,” without warranty of any kind – whether expressed or implied. All market prices, data and other information are not warranted as to completeness or accuracy, are based upon selected public market data, reflect prevailing conditions, and our view as of this date, all of which are accordingly subject to change without notice. The graphs, charts and other visual aids are provided for informational purposes only. None of these graphs, charts or visual aids can and of themselves be used to make investment decisions. No representation is made that these will assist any person in making investment decisions and no graph, chart or other visual aid can capture all factors and variables required in making such decisions. The information contained in this document may include, or incorporate by reference, forward-looking statements, which would include any statements that are not statements of historical fact. No representations or warranties are made as to the accuracy of such forward-looking statements. Any projections, forecasts and estimates contained in this document are necessarily speculative in nature and are based upon certain assumptions. These forward-looking statements may turn out to be wrong and can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, most of which are beyond control. It can be expected that some or all of such forward-looking assumptions will not materialize or will vary significantly from actual results.