Multyr does not eliminate risk
It structures how capital is deployed under encoded constraints. This page documents the risk categories allocators accept when interacting with the protocol.
Smart Contract Risk
What it is. Bugs, vulnerabilities, or misconfigurations may cause partial or total loss of vault capital.
Mitigations and residual exposure. Testing, static analysis, shadow testing, audits, and bug bounty reduce but do not eliminate this risk.
Underlying Protocol Risk
What it is. Failures in Aave, Euler, Morpho, Compound, Venus, or future integrations directly impact allocated capital.
Mitigations and residual exposure. Whitelist-only integrations and per-protocol exposure caps help bound exposure.
Strategy Risk
What it is. Each strategy has its own failure modes and may degrade with market conditions.
Mitigations and residual exposure. Strategy-specific parameters and degraded states limit but do not remove strategy exposure.
Liquidity Risk
What it is. Withdrawals depend on liquidity of underlying positions and market conditions.
Mitigations and residual exposure. Liquid buffers, queued withdrawals, and force withdrawal preserve exit, but slippage and delay remain possible.
Allocation and Rebalancing Risk
What it is. Rule-based allocation may underperform discretionary action and every rebalance has a cost.
Mitigations and residual exposure. Execution thresholds and bounded batch size reduce unnecessary rebalancing.
Market Risk
What it is. Broad market conditions still affect performance and stability.
Mitigations and residual exposure. USDC base asset and strategy diversification help, but cannot hedge market-wide stress.
Governance and Parameter Risk
What it is. Governance-controlled parameters may still be updated in adverse ways.
Mitigations and residual exposure. 48h timelock and veto give visibility and time to exit before changes apply.
Oracle Risk
What it is. Deposit pricing and allocation logic may rely on oracle inputs.
Mitigations and residual exposure. Staleness checks, deviation checks, and the deliberate choice to never block withdrawals on oracle failure help contain this.
Regulatory Risk
What it is. Changes in laws or local restrictions may affect access.
Mitigations and residual exposure. Multyr is non-custodial, but allocators remain responsible for compliance in their jurisdiction.
What Multyr does not guarantee
- - Returns of any magnitude
- - Capital preservation
- - Protection from market conditions
- - Indemnity against smart contract failures
- - Any specific outcome from allocation behavior