Rabi Governance system is responsible for managing the risk parameters for each Rabi Vault type. These parameters include the debt ceiling, stability fee, liquidation ratio, liquidation penalty, and collateral auction duration.
The risk parameters are determined based on the risk profile of the collateral and are controlled by RABI holders through voting. The successful operation of the Rabi Protocol depends on Rabi Governance taking necessary steps to mitigate risks.
Malicious attack on the smart contract infrastructure of the Rabi Protocol could result in the theft of all decentralized digital assets held as collateral. To mitigate this risk, the Rabi Foundation has implemented various security measures such as formal verification, contracted security audits, third-party audits, and bug bounties. However, these measures are not infallible, and there is still a risk of an attack.
The risk management and security measures are implemented by Rabi Governance and the Rabi Foundation for the Rabi Protocol. The potential risks that could affect the health of the Rabi Protocol includes black swan events, pricing errors, user abandonment, and dissolution of the Rabi Foundation. To mitigate these risks, the Rabi Governance and Rabi Foundation have implemented various measures. For example, RABI holders are incentivized to prepare for the Foundation’s dissolution after it completes “gradual decentralization” of the project. Successful management of the system should result in sufficient funds for governance to allocate to the continued maintenance and improvement of the Rabi Protocol
The risk management and security measures are implemented by Rabi Governance and the Rabi Foundation for the Rabi Protocol. The potential risks that could affect the health of the Rabi Protocol includes black swan events, pricing errors, user abandonment, and dissolution of the Rabi Foundation. To mitigate these risks, the Rabi Governance and Rabi Foundation have implemented various measures. For example, RABI holders are incentivized to prepare for the Foundation’s dissolution after it completes “gradual decentralization” of the project. Successful management of the system should result in sufficient funds for governance to allocate to the continued maintenance and improvement of the Rabi Protocol
