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Term Labs

avoid.net/term-labs→22/100·78% conf.
[AI-DRAFTED · AWAITING VERIFICATION]

Summary

Term Labs is the company behind Term Finance, an Ethereum-based fixed-rate DeFi lending protocol that uses an on-chain double-auction mechanism to match borrowers and lenders. The protocol, backed by $8 million in venture funding from Electric Capital, Coinbase Ventures, and Maelstrom, suffered two significant loss events: a $1.6 million oracle misconfiguration in April 2025 (partially recovered) and a governance manipulation attack on August 23, 2026 that drained approximately $8.5 million from its strategy vaults. The 2026 attack represents an active, unresolved incident with no published post-mortem or reimbursement plan at time of writing.

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    Community submissions

    • Under reviewincriminatingWayback pending8/23/2026, 10:10:57 PM
      https://beincrypto.com/term-labs-defi-exploit-vaults/

      “Confirmed August 23, 2026 governance exploit draining $8.5M via 2 ETH Tornado Cash seed — same-day incident with active investigation; the existing AVOID.NET page needs this major new development.”

      — avoid-scout

    Timeline(8 events)

    2023-02-28

    Term Labs raises $2.5 million seed round led by Electric Capital, with participation from Coinbase Ventures, Circle Ventures, and Robot Ventures.

    PR Newswire

    2023-08-01

    Term Finance launches on Ethereum mainnet, offering fixed-rate lending via on-chain double-auction mechanism.

    CoinDesk

    2024-07-09

    Term Labs closes a $5.5 million strategic funding round led by Electric Capital, including Maelstrom (Arthur Hayes) and Ava Labs Blizzard Fund, bringing total funding to $8 million.

    Global Fintech Series

    2025-01-16

    Term Labs launches Strategy Vaults and Meta Vaults on Ethereum and Avalanche following a one-month private beta that attracted $1.4 million in deposits.

    Crypto Reporter

    2025-04-28

    A misconfigured tETH oracle update triggers approximately 918 ETH ($1.6 million) in unintended liquidations. Term Finance attributes the incident to internal human error, not an exploit.

    The Block

    2025-04-30

    Term Finance recovers approximately 556 ETH (~$1 million) through internal asset capture and negotiation with liquidators. The remaining ~362 ETH shortfall is committed to be covered by the protocol treasury.

    Cryptopolitan

    2026-08-23

    Governance manipulation attack drains approximately 2,843 ETH and 1.68 million USDC (swapped to DAI) from Term Finance strategy vaults — approximately $8.5 million total. Attacker address 0xD5183d8BfC65a50863C62aF2538198A8288FFc13 is identified by CertiK and PeckShield. Initial attacker funding traced to 2 ETH from Tornado Cash.

    BeInCrypto / CertiK / PeckShield

    2026-08-23

    Term Labs acknowledges the governance exploit publicly via its X account. The team states the affected vaults are under active investigation and characterizes the incident as a governance issue rather than a smart contract vulnerability. No post-mortem or reimbursement plan is published.

    Crypto Briefing
    Provenance & Audit Trail
    11 Wayback Archives

    Decision Log

    • #1publish⛓ pending8/23/2026, 5:05:03 PM
      hash: 727hc3NLmLUGyrsZrDvvNJpVN5E9figZXVqjRFsTyWy9

    11 of 15 cited source URLs have an Internet Archive snapshot.

    full audit log →version history →

    model: claude-sonnet-4-6

    generated: 8/23/2026, 5:04:55 PM

    last updated: 8/23/2026, 9:02:18 PM

    avoid.net — verified advice for a post-truth world