Risks and security

What can go wrong

Risk	What it means	Who
The vault	Your money is a slice of a yield-bearing vault. If the vault loses value (slashing, bad debt, underperformance, a depeg, a rebase down), so does your balance, including Fixed amounts. Fixed protects you from the yield changing, not from the vault losing value. After a drop, yield only counts again once the price is back above the market’s previous high, so a Leverage window in that time can earn 0	Everyone
Locked until the date	After a Fixed trade, the amount you paid is locked until the date. Getting out early means a Close	Fixed
Closing early	A close uses today’s rates, which can be worse than the rate you locked in	Fixed, Leverage
Exposure isn’t cash	The extra balance in a Leverage window only earns yield. It can’t be withdrawn	Leverage
Leverage loss	If the yield in your window is below the rate you paid, you lose part or all of what you paid	Leverage
One-sided fills	When rates move, traders fill your side, and you may hold a rate that is now worse than the market	Limit, Recursive
Thin liquidity	A Close trades against the book. If liquidity is thin, closing costs more, and a close across several periods fills completely or not at all	Fixed, Leverage
Redemption below 100%	If the vault pays out less than face value on withdrawal, converting to shares returns less. The app shows this as Redemption	Everyone
Smart contracts	A bug could cause loss of funds	Everyone

Only put into Leverage what you can afford to lose.

What can go wrong