Risks
Risk Overview
Plain-English map of all risk categories facing depositors and protocol participants.
DANGER
Crypto tokens go to zero, protocols fail, and leveraged strategies can wipe out entirely. The risks below are real. Read them before depositing.
Risk Categories
| Category | Who Is Affected | Severity | Details |
|---|---|---|---|
| Trading losses | atRISKUSDC holders | High | Exchange rate can decrease; you can lose all deposited capital |
| Smart contract risk | All participants | High | Bugs in contracts could result in loss of funds |
| Venue risk | All participants | High | Venue downtime or failure impacts trading operations |
| Liquidity risk | Depositors exiting | Medium | Redemption caps, redemption checks, and atRISKUSDC cooldowns limit exit speed |
| Governance risk | All participants | Medium | Parameters can change through governance votes |
| Operational risk | All participants | Medium | Off-chain service failures can disrupt operations |
| Regulatory risk | All participants | Medium | Regulatory changes could restrict access |
Risk by Position
Holding USDC (not deposited)
No protocol risk. Your USDC is not in the protocol.
Holding RISKUSDC (not staked)
- Smart contract risk (RISKUSDC contract, RISKUSDCVault)
- Redemption risk (weekly cap and vault checks; cap overflow reverts rather than queues)
- No trading risk
Holding atRISKUSDC (staked)
- All RISKUSDC risks, plus:
- Trading loss risk (exchange rate can decrease)
- Lock-up risk (T1–T3 cannot exit during lock-up)
- 7-day withdrawal cooldown
Holding FORAGE
- Smart contract risk
- Governance token — no yield, no revenue share
- Value depends on governance utility and future buyback-and-burn activation
Detailed Risk Pages
- Vault Participant Risks — Lock-ups, loss exposure, exchange-rate downside
- Venue, Liquidity, and Operational Risk — Venue dependency, service failures
- Smart Contract Security — Security reviews, upgradeability, trust assumptions
- Access and Eligibility — Geographic restrictions, legal boundaries