Risk for Investors

Impermanent Loss

In the volatile cryptocurrency market, impermanent loss occurs when the value of deposited assets temporarily decreases compared to holding them in your wallet. This phenomenon often arises when assets are deposited into vaults, which then provide liquidity to decentralized exchanges, automated market makers, or yield farming protocols.

Interest rate fluctuations

Our platform dynamically implements strategies across various DeFi protocols, each offering different interest rates. These rates are influenced by market conditions, protocol governance decisions, and shifts in liquidity demands. Consequently, investment profitability may be affected by unpredictable fluctuations in interest rates.

Asset Return Timing

The timing of yield harvesting is contingent upon protocol-specific parameters and prevailing market conditions. While we endeavor to optimize yield farming strategies, investors should expect variations in yield accrual timing. External factors such as network congestion and protocol upgrades may further impact the frequency and consistency of yield harvesting.

Oracle Data Fetching

Relying on oracles to fetch accurate and timely market price data for executing yield farming strategies introduces potential instability. Oracle data integrity may be compromised by factors such as data latency, manipulation, or code malfunction. Such occurrences could adversely affect the performance of our vaults' yield generation capabilities.