Lonzalus I have faith that the blockchain keys would not be taken over; However,
in the case that the exchange suffered a hack, are our funds protected?
Morpher isn't an exchange, it's a smart-contract protocol. You interact with it using your wallet (Fortmatic or Metamask), so you are ultimately the custodian of your own funds, and use your wallet to sign for transactions. Insofar as the smart-contracts themselves, you can check out the security section of our whitepaper, where we also link to a security audit.
Lonzalus Alternatively, if MPH tokens are suddenly rendered worthless, investors would be screwed.
Is the option of holding currency in USDT at all viable?
This is something we've talked about before, in previous product roadmaps. It's something we are considering to implement eventually, right now our resources are concentrated else where; our Dapp, wallet support, account transactions (deposit/withdrawal), and on general UX improvements.
Lonzalus If MPH dropped more than 20%, investors might withdraw their tokens into a fiat currency which would escalate the drop, will there ever be a withdrawal-prevention system to protect liquidity? (not a suggestion)
How does MPH protect itself from liquidation?
Since Morpher is still in it's early days, we have daily and monthly withdrawal limits. Liquidity risk is an issue with any token in it's early stages, and we're very well aware of it.
If you're interested in more about our tokenomics, make sure to check out our whitepaper and knowledge base.