> ## Documentation Index
> Fetch the complete documentation index at: https://docs.momentrates.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Risks and security

> What can go wrong, what can't, and what to check before you sign.

## 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 It can't be withdrawn | Leverage |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 |

> [!CAUTION]
>
> Only put into Leverage what you can afford to lose.

## What can't happen

* **No liquidations.** Everything is prepaid. There is no margin and nothing can force-close you.
* **No oracle to attack.** Yield is read from the vault itself, and rates come from the market.

## Before you sign

Check contract addresses before you sign. They will be listed in [Contracts and parameters](https://docs.momentrates.xyz/for-builders/contracts-and-parameters.md) at launch, and the app shows them under **Contracts & IDs**.


## Related topics

- [Recursive](https://docs.momentrates.xyz/use-the-app/recursive.md)
- [FAQ](https://docs.momentrates.xyz/good-to-know/faq.md)
- [Liquidity mechanics](https://docs.momentrates.xyz/for-builders/liquidity-mechanics.md)
- [Leverage](https://docs.momentrates.xyz/use-the-app/leverage.md)
- [For investors](https://docs.momentrates.xyz/background/for-investors.md)


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