Risks & Disclosures
Summary This page summarizes principal risks associated with using RFY vaults, the controls we put in place to mitigate those risks, and important disclosures for users and partners. This material is educational and not legal, tax or investment advice. Always perform your own due diligence
High-level risk categories
Execution and counterparty risk
What it is Risk that offchain execution partners or CEX counterparties fail to perform, misreport fills, or experience liquidity or credit issues.
Why it matters It can affect receipt NAV and user outcomes.
Mitigations
Work only with vetted institutional partners.
Real time position and PnL endpoints
Smart contract and protocol risk
What it is Bugs, exploits or vulnerabilities in RFY smart contracts, external integrations, or relayers.
Why it matters A vulnerability could lead to loss of funds, incorrect accounting, or interruption of minting and redemptions.
Mitigations
Independent third-party audits prior to mainnet.
Minimal contract surface area for critical bugs.
Emergency pause capability.
Liquidity and exit risk
What it is Risk that paired AMM pools or market depth are insufficient for painless mid-epoch exits, causing high slippage or inability to exit.
Why it matters Users may expect to leave positions before redemption windows and could be unable to do so at acceptable cost.
Mitigations
RFY may seed AMM pools to provide initial depth.
Deposit caps to avoid volatility de-peg mid-epoch.
Redemption windows for direct settlement if AMM liquidity is unavailable.
Market and collateral risk
What it is Volatility, sudden price moves, and correlated liquidations that affect collateral value and strategy performance.
Why it matters Any strategy and even delta neutral ones have residual exposures. Extreme market moves can produce losses that exceed expected ranges.
Mitigations
Conservative strategies, sizing and dynamic risk parameters.
Disclosures
Third-party execution
RFY uses third-party institutional strategists to execute strategies offchain. Execution partners are vetted. Final settlements are independently verified to ensure accuracy and guarantee fulfillment.
No guarantee of returns
RFY does not guarantee positive returns. All strategies carry risk. Performance is variable and past outcomes do not predict future performance.
Composability and external use
Receipt tokens are ERC-4626 shares and are composable. Using them in other protocols or providing pool liquidity introduces additional risks including impermanent loss, contract risk, and counterparty exposure.
Legal, tax and financial disclaimer
This documentation is educational and does not constitute financial, legal, or tax advice. Consult a qualified professional for guidance specific to your circumstances.
What we publish for transparency
Onchain
TotalAssetsandEpochSettledevent logs.Audit reports results.
Periodic summaries of vaults NAV
User responsibilities and best practices
Verify contract addresses before depositing. Only use links from official RFY channels.
Understand market risks associated with the underlying asset and strategy.
Check pool liquidity and slippage estimates before mid-epoch exits.
Read epoch details including deposit caps, fees and redemption windows.
Legal notice
RFY, its contributors and partners are not offering investment advice. Use of RFY products involves substantial risk and may result in loss of all funds deposited. By interacting with RFY contracts you acknowledge you have read and accepted the risks described here.
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