Risk framework
Level: Intermediate · Not financial advice. "Yields are not guaranteed… you may lose some or all of your deposited assets."
| Risk | What it means for a Concrete depositor | Mitigations described by Concrete | What you can do |
|---|---|---|---|
| Smart-contract | Bug or exploit in vault/strategy/dependency code | Multiple audits, bug bounty, role separation, monitoring, pause authority | Prefer audited versions; size positions modestly |
| Strategy / protocol | Underlying venue is hacked, depegs or loses money → share price falls | Strategy vetting, whitelisting, exposure caps for new strategies, disclosures | Read the vault's strategy breakdown & transparency panel |
| Market / IL | LP positions lag simply holding; higher for volatile pairs & new-chain campaigns | Diversification, dynamic reallocation | Avoid volatile-pair vaults if you can't tolerate IL |
| Slippage | Swaps during deposit/rebalance execute worse than expected | Aggregator routing (e.g. 1inch), slippage limits in contracts, UI warnings | Use reasonable size; heed warnings |
| Liquidity / exit | Queue delay, withdrawal caps, cooldowns; price locked at processing | Queue transparency, FIFO ordering | Match holding period to the exit model |
| Custody & operator | Off-chain valuations and custodied assets rely on operators/custodians | MPC/multisig, bounded accounting updates, independent verification | Prefer vaults with on-chain accounting if you dislike this |
| Operational halt | Late accounting push halts deposits/withdrawals until fixed | Automation + monitoring | Know that pauses can occur |
| Regulatory / access | Restricted jurisdictions; address screening | Terms, geo-blocking | Check eligibility first |
| Smart-wallet / user | Phishing, fake sites, bad approvals | - | Bookmark domains; revoke stale approvals |
Loss mechanics
A strategy loss → operator/strategy reports lower value → totalAssets falls → share price falls for all holders proportionally. In async-accounting vaults an operator can reduce reported total assets. There is no separate insurance layer described in the docs.