Teddy Cash has been audited by HashEx. Teddy Cash is a fork of the Liquity protocol and inherits all risks of that protocol. We have made minimal changes to Liquity's original set of smart contracts. We recommend you review the following audits done for Liquity in addition to the one done by HashEx.
Here are the most notable risks that you should be aware of when using Teddy Cash.
No Backup Oracle
Liquity uses the Chainlink oracle as primary price feed, and a Tellor oracle as fallback. Since the Tellor oracle was not available on Avalanche during deployment, Teddy Cash configured instead an empty contract as oracle, which is equivalent to disabling the backup oracle. Alternative solutions to retroactively add Tellor support once it becomes available, would make the protocol no longer immutable and this introduces additional risks. The removal of the backup oracle has been proven to work in other liquity forks (Fluity, PolyQuity, etc).
Potential differences in a new EVM
Any protocol that is forked to a new EVM can contain hard to detect and mission critical bugs that may lead to catastrophic losses. Proceed with extreme caution.