Risk disclosures

Using AevumFi carries real risk, including the loss of everything you commit. Read this before interacting with any module.

Smart-contract risk#

The contracts have not completed an external audit. They can contain bugs or be exploited despite testing. Parameter changes by the owner, within the contracts' bounds, can change how a module behaves.

Vault risk#

Omni-Vault depositors are the counterparty to every perp trader. When traders win, the vault pays them and the afUSD share price falls; a run of trader profits can cost depositors money. Positions that go past zero equity before they are liquidated leave bad debt the vault absorbs. Withdrawals can be limited by open trader profits and the open-interest reserve, and pause while prices are stale.

Liquidity-ladder risk#

Rungs fill as the price moves: asks sell your tokens as it rises and bids buy as it falls, so a ladder ends up holding more of whichever side lost value. Re-centring doesn't undo fills. The operator you choose decides when to re-centre, within your limits, and its gas is paid from your reserve up to your daily cap. WETH fees are sold for USDG at the pool's price when you harvest.

Launchpad risk#

Anyone can launch a token and write its name, icon and description. A launched token can be worth nothing; its price moves only with trading on its ladder, and early buyers fill the cheapest rungs. A buyback doesn't set a price floor. A floor backstop buys whatever the chosen collection's cheapest listing is, and its fractions are worth only what the swept NFTs are. An agent stream pays whatever wallet its agent names.

Leverage and liquidation risk#

Perps allow up to 20× leverage. A small move in the index can liquidate a position and lose its margin. Indices gap when their home exchanges reopen, and a position can't be closed while its exchange is shut — liquidations can happen well below the level shown.

Oracle and market-data risk#

Every price comes from the AevumFi oracle, whose signers publish quotes from a public data source. Stale, wrong or manipulated data — or a compromised signer key — can cause incorrect fills, PnL or liquidations. Some exchanges' public quotes run about 15 minutes late.

Settlement-asset risk#

Everything settles in USDG. USDG depends on its issuer; a freeze or depeg affects every balance. The dark pool prices WETH in USD and treats USDG as one dollar.

Privacy limits#

The dark pool hides an order's direction and size until its batch closes, but commit transactions show who is trading and when, and reveals become public once the batch has closed. Pool deposits and withdrawals are ordinary public transfers. Order receipts you export can prove your orders to whoever you share them with.

Network risk#

Robinhood Chain is a Layer 2 with its own sequencer. Outages or congestion can delay transactions — including the reveal of a dark-pool order, or a keeper's liquidation.

Regulatory risk#

Synthetic index derivatives face evolving and differing regulation. Some features may be unavailable or restricted in your jurisdiction, and it is your responsibility to comply with local law.

No advice#

Nothing in these documents or on this site is investment, legal or tax advice, or an offer to buy or sell any asset.