What are the Warnings on the Morpho Interface?
In Morpho (formerly known as Morpho Blue), each parameter is selected at market creation and persists in perpetuity. Or, in other words, are immutable. The LLTV and interest rate model must be chosen from a set of options approved by Morpho Governance.
Once a market is created, users can either lend/borrow assets to/from it with certainty that:
- It will persist as long as Ethereum, Base or any other network exists.
- The parameters of the market will never change.
As a reminder, a market is composed of 5 parameters:
- Collateral Asset,
- Loan Asset,
- Liquidation-Loan-To-Value,
- Oracle,
- Interest Rate Model.
You may see Info Labels or Token Warnings while using and navigating throughout the Morpho Interface. These warnings are to alert you to the potentially heightened risk in using specific markets, vaults, oracles or tokens.
How are Interface Warnings determined?
There are 3 existing warning levels:
- 🔴
RED: Any collateral asset, loan asset, deposit asset, oracle, vault curator that does not fit the listing criteria (seen below) will require a user to opt into interacting with that aspect of Morpho. - 🟡
YELLOW: This level of warning is a “soft warning” that alerts a user to a potential abnormality, but does not require the user to “opt in” to the action. Not available: Manually curated list created by Morpho Association will block tokens that violate trademarks, that have proven to be scams, or otherwise based on legal considerations.
The table below is explicitly explaining some reasons why warning level may appear on:
Morpho
| Label | Criteria | Levels |
|---|---|---|
| unrecognized_collateral_asset | The collateral asset used in the market is not a part of our recognized token list. | 🔴 |
| unrecognized_loan_asset | The loan asset used in the market is not a part of our recognized token list. | 🔴 |
| unrecognized_oracle | The oracle asset used in the market has not been added to our whitelist. | 🔴 |
| unrecognized_oracle_feed | This market oracle has feed(s) that are not part of our recognized feeds list. | 🔴 |
| bad_debt_unrealized | This market has significant unrealized bad debt (>25 BPS total supply) | 🔴 |
| bad_debt_unrealized | This market has some unrealized bad debt (>$10k) | 🟡 |
| bad_debt_realized | This market has some realized bad debt (>10 BPS of total supply) | 🟡 |
| hardcoded_oracle_feed | This market is using a hardcoded value in its oracle. | 🟡 |
| unrecognized_lender | This market isn’t used in a vault where the curators have >$200k of assets under management. | 🟡 |
| low_liquidity | This market has less than $200k supplied to it. | 🟡 |
| unsafe_vault_as_collateral_asset | Market is using a Morpho Vault as collateral asset which has at least one minor (yellow) warning | 🟡 |
| unsafe_vault_as_collateral_asset | Market is using a Morpho Vault as collateral asset which has at least one major (red) warning | 🔴 |
| incompatible_oracle_feeds | The market is using oracle feeds which do not match with each other. | 🔴 |
| incorrect_collateral_exchange_rate | The market is using the exchange rate from a token different from the collateral one. | 🟡 |
| incorrect_loan_exchange_rate | The market is using the exchange rate from a token different from the loan one. | 🟡 |
| not_whitelisted | There is no known vault that is supplying into this vault. | 🔴 |
Morpho Vaults
| Label | Criteria | Levels |
|---|---|---|
| unrecognized_market | The vault has an allocation on a market that has at least one critical warning. | 🟡 |
| unrecognized_deposit_asset | The asset to deposit into this vault is not recognized. | 🔴 |
| unrecognized_vault_curator | The curator has less than $200k AUM across all of its vaults. | 🔴 |
The token whitelist is available here and the oracle feed whitelist here.
Refer to this risk documentation to be sure you understand all the risks.
Policy
Asset blocking policy
The Morpho protocol is a self-executing, permissionless, decentralized series of smart contracts that cannot be changed by anyone except the DAO for given parameters.
Morpho Association maintains one of many ways to interact with the Protocol (the Morpho Interface for instance), and as a non-profit association based in France is subject to certain laws and regulations.
As such, there may be certain circumstances under which Morpho Association blocks access to certain markets and vaults through our the interface provided.
Criteria for Restricting Access on Morpho Association Interfaces
- Morpho Association will block some components of the Protocol for the following reasons:
- Risks to users. Morpho Association believes there are technical, fraud, or other risks that could significantly affect user safety.
- Legal and regulatory requirements.
- Fraud allegations.
- Morpho Association will block individual or smart contract addresses that are subject to U.S. government sanctions or associated with certain types of illegal activity.
- Morpho Association may block individual or smart contract addresses for any other reason at their discretion. For example, Morpho Association might have reason to believe that an address is associated with fraud, theft, or market manipulation, or that a smart contract has unacceptable security vulnerabilities.
Additional disclosures
Interface Warnings are created using information from third-party data providers. Morpho Association does not guarantee their accuracy and makes no representations or warranties about their relevance or currentness. The Morpho Protocol operates on a permissionless and decentralized basis, allowing Markets and Vaults to be established and administered by any third-party individual or entity. Any information provided by the Morpho Association on Vaults, Markets or any of their parameters does not constitute an endorsement of the Markets or Vaults and is provided solely for informational purposes. It does not represent an endorsement, recommendation, or any form of advice on how to engage with or utilize the Morpho Protocol.
Morpho Association Token Lists and Interface Warnings are not investment advice and should not be construed as such. Morpho Association strongly advise that before engaging in any financial, legal, technical, or other significant decisions related to the Morpho Protocol, you perform your own research (including, but not limited to, an analysis of the market or vault's structure, the assets involved, the parties responsible for its creation and management, and the potential risks and rewards associated with participation) and consult with an independent professional who is licensed and qualified in the relevant field. Such advice is crucial to ensure that your decisions are well-informed and take into account the specific nuances and complexities of your situation.