Risks
Trading and providing liquidity expose funds to prices, contract behavior, counterparties, and administrative control. The pages below explain the limits that matter before you act.
A position can lose all its margin. Vault shares can lose value. Market checks or a freeze can delay access to funds.
Trading risks
| Risk | What can happen | Details |
|---|---|---|
| Leverage and time costs | Price losses, funding, and interest consume equity. | Margin and leverage. |
| Liquidation | A keeper closes the whole position and charges the liquidation fee. | Liquidation. |
| Delayed exits | A trigger, price bound, decrease lock, or missing keeper leaves an exit unfilled. | Orders. |
| Profit cap | A close pays less than marked profit. The withheld part stays in the vault. | Profit and payouts. |
| Auto-deleveraging | A keeper reduces eligible exposure without another approval. | Auto-deleveraging. |
| Price or network failure | Execution stops, arrives late, or uses a valid report that differs from the display. | Prices. |
The position's margin bounds its trading loss. Separate orders, relay fees, and active session permissions can still commit other available funds.
Liquidity risks
The vault pays trader profits and absorbs losses beyond trader margin. Fee income can be smaller than those outflows. A deposit and redeem use different adverse marks and each pays its applicable vault fee. A quick round trip can lose value. A redeem can remain blocked after its cooldown because liquidity or pending profit checks fail. A minimum-received rejection returns principal but spends the execution fee. Read Share value and Deposits and withdrawals.
Permissions and services
A relayed signature permits fees and contract actions within its signed scope. Dynamic target arguments leave some submission choices to the relayer. One-click trading grants continuing permission. The current policy limits destinations but has no spending cap. A compromised browser can misuse it for trading. A timeout can hide a successful submission. Signing another request before checking the chain can duplicate exposure. Read What you sign, One-click trading, and Pending and failed transactions.
Owners and contract risk
Owners can change parameters, freeze markets, delist them, and upgrade relevant contracts. A freeze blocks exits while exposure and elapsed costs continue. A delisted market can settle at an owner-set price. Healthy positions can later be forcibly closed. Contracts, dependencies, token issuers, and the Stellar network can fail. The deployed contracts have not had an independent audit; the one published report covers an earlier version. Read Governance, Market status, and Audit reports.
App, relay, and funding-service access depends on each service's availability and access policy. The contract interface remains a separate integration surface.