Risk warning

Risk Warning

Botanix mainnet involves real Bitcoin and other cryptocurrency funds. Before using the network, you must understand and accept the following critical risks.

Core Network Risks

Even though the end-goal of Botanix Labs is to create and implement a fully decentralized Spiderchain, we need some in-between steps to get there. (see our Roadmap or the whitepaper) At this stage of development, Botanix mainnet operates as a federated sidechain, meaning that blocks are produced by 16 trusted, permissioned federation members. These federation members also secure the multisig where your real funds are locked.

This setup means users are sending their bitcoin to a centralized semi-custodial system with the following risks:

1. You trust the Federation with custody of your real BTC. BTC withdrawals are currently permissioned by the Botanix federation. When you deposit BTC into Botanix mainnet, you must trust that the signers will not collude and steal your funds. Your BTC is held in a 12-16 multi-sig wallet where 12 (⅔ + 1) of the signers would need to be compromised to steal your bitcoin.

2. Orchestrators control block production. Botanix blocks are proposed and finalized by the Botanix federation. Block production is permissioned, meaning anyone cannot join as a block producer regardless of resources. You trust that the federation will not censor your transactions or prevent withdrawals.

Financial and Security Warnings

• Real money is at risk: Unlike testnets, mainnet involves actual cryptocurrency with real monetary value. Any losses are permanent and irreversible.

• Smart contract risks: Smart contracts may contain bugs or vulnerabilities that could result in total loss of funds.

• Bridge risks: The cross-chain bridge technology carries inherent risks including potential exploits or technical failures.

• Regulatory uncertainty: Regulatory changes could impact the network's operation or your ability to access funds.

Security Best Practices

• Never share your private keys or seed phrases with anyone

• Verify all website URLs carefully - beware of phishing sites

• Only follow official announcements through verified Botanix social media channels

• Start with small amounts to test functionality before depositing larger sums

Legal and Investment Disclaimers

• You could lose all deposited funds: There is no guarantee of fund recovery if issues arise

• This technology is in beta phase and carries risks

• No investment advice is provided - conduct your own research

• All roadmaps, specifications, and performance claims are estimates made in good faith but are not guarantees

• Nothing in this project constitutes a solicitation for investment

By using Botanix mainnet, you acknowledge that you understand these risks and agree to use the network at your own risk with funds you are happy to experiment with.