I asked Claude about the new Bitcoin-backed loans service from Coinbase
What Is Morpho?
Morpho is a DeFi lending platform where users can borrow and lend digital assets.
ADDMO, a French association, only provides the website interface (front-end) to access these blockchain-based protocols.
Main Concerns for Investors
1. Zero Liability: ADDMO takes no responsibility for any losses, regardless of size or cause
2. Minimal Protection: Maximum compensation is capped at $1,000, even for large losses
3. Hidden Fees: Performance fees can change up to 50% with only 24 hours notice
4. Liquidation Risks: Your collateral can be liquidated if loan-to-value ratios are exceeded
5. Geographic Restrictions: US/UK persons and certain territories are prohibited
6. No Control: ADDMO can transfer the agreement to another company without notice
Bottom Line
These terms heavily favor ADDMO by placing all risk on users. While common in DeFi, these terms provide virtually no protections for investors if something goes wrong.
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