A vault is high risk when its TVL is a large % of the pool TVL as measured by or if the pool's TVL is low.
These vaults have an increased risk of and , both of which can lower your returns. Please deposit in small amounts, and frequently monitor the of your positions in high risk vaults.
High risk vaults will be on the front-end before every deposit.
Trending markets
The vaults are likely to underperform if the price only moves in one direction (ie in a ).
LPs should therefore closely monitor a vault's strategy, and withdraw if they believe the market price will consistently move outside the Liquidity Position chosen by the vault.
Short term under-performance
Alpha Vaults offers a type of LP Strategy that focuses on transparency and long-term performance. They may underperform actively managed LP Strategies in the short term.
LPs should therefore monitor the performances of different vault providers to decide whether Alpha Vaults remains the best option.
Unexpected Volatility
LPs should regularly update of how the price will move, to decide whether it's consistent with the vault's strategy. If not, they should withdraw their funds, or the vault's parameters.
Security risks
Alpha Vaults did not have any security incidents since it was 3+ years ago, but security incidences may still happen. This is why it also received three (two by Peckshied, and one by Certik).
A programme is also in place to ensure the code is continuously monitored.
Manager risks
Anyone can a vault, and as such, please do your due diligence on the vault managers before depositing.
Charm will make every effort to verify vaults to establish who has created the vault, but can NOT provide assurance the vaults (and therefore your deposits) will not be mismanaged.
If anyone suspects mis-management, or otherwise of a vault, please report it in .
