⚠️ Risks

Are there any risks associated with the vaults?

As with all interactions in DeFi, there are inherent risks involved, and depositing funds into any vault is not without risk. Many of the vaults on offer run on top of perpetual and trading platforms where depositors provide liquidity for trades. These platforms allow traders to long and short the market. When trades are liquidated, revenue is distributed to stakers, allowing them to earn revenue in the form of fees. However, if traders make money from correctly predicting market movements, their payouts are distributed from these pools.

While in general, these pools generate positive revenue for stakers in the medium to long term, the pool value may fluctuate up and down in the short term. As a result, it's important to understand the risks involved before depositing funds into any vault.

Please note that your capital is at risk, and you should carefully consider your financial situation and risk tolerance before making any investment decisions. It's important to conduct your own research and consult with a financial advisor if necessary before investing in any DeFi protocols.