| 1 |
Market Risk – $LEA and POD-native tokens may experience extreme volatility, especially in early stages with low liquidity. |
High |
Significant loss of token value, difficulty executing large trades without slippage. |
Gradual token release schedules, liquidity incentives, and diversified exchange listings. |
| 2 |
Regulatory & Legal Risk – Jurisdictions may alter laws on digital assets, enforce stricter KYC/AML rules, or restrict blockchain participation. |
Medium |
Restrictions on token sales, limited market access, operational delays. |
Ongoing legal review, compliance-first token sales, flexible architecture to adapt to local regulations. |
| 3 |
Technical Risk – Smart contract bugs, cryptographic failures, or vulnerabilities in verifiable state compression / cross-POD calls. |
Medium |
Loss of funds, service disruption, reputational damage. |
Independent security audits, bug bounty programs, staged feature rollouts. |
| 4 |
Adoption & Ecosystem Risk – Failure to attract developers, users, and validators; competition from other L1 protocols. |
Medium |
Reduced network utility and long-term sustainability. |
Developer grants, targeted ecosystem partnerships, aggressive community onboarding via LEA Pulse. |
| 5 |
Operational & Infrastructure Risk – Network downtime, validator or prover participation drop, reliance on external hosting or app stores. |
Low-Medium |
Decreased trust, temporary service unavailability. |
Decentralized hosting options, validator incentives, redundant infrastructure providers. |
| 6 |
Governance Risk – Concentration of voting power, contentious decisions, or governance attacks. |
Low-Medium |
Potential forks, unfavorable protocol changes. |
Transparent governance rules, staking-based participation, governance simulations before deployment. |
| 7 |
Security & Key Management Risk – Private key loss or compromise despite account abstraction safeguards. |
Medium |
Permanent loss of funds or access. |
Social recovery features, multi-sig wallets, user education on security best practices. |
| 8 |
Liquidity & Tokenomics Risk – Insufficient liquidity, token unlock events causing sell pressure. |
Medium |
Price instability, reduced investor confidence. |
Vesting schedules, liquidity pool incentives, treasury-backed market support. |
| 9 |
Third-Party & Dependency Risk – Reliance on external oracles, APIs, or unaudited Decoders. |
Medium |
Service disruption, data manipulation, user loss. |
Tiered Decoder Registry, whitelisted oracle providers, mandatory audits for high-impact Decoders. |
| 10 |
Force Majeure Risk – Global crises, cyber warfare, or large-scale network outages beyond project control. |
Low |
Severe operational disruption. |
Disaster recovery plans, distributed team operations, geographic validator diversity. |
