Risks and Considerations
Investing in Solomon DeFi Vaults, like any financial product, comes with inherent risks. While we strive to minimize these risks through careful management and strategy, it is essential for users to be aware of the following:
Credit Risk:
Each vault interacts with various DeFi platforms, each with its own credit risk.
The risk associated with the underlying platforms is factored into the vault’s yield calculation. Users should consider the creditworthiness of these platforms before investing.
Contract Risk:
Smart contracts underpinning the Solomon DeFi Vaults are audited, but there is always a risk of vulnerabilities or exploits.
Users must understand that contract risk is an inherent part of using DeFi platforms.
Market Risk:
Although Solomon DeFi Vaults employ delta hedging strategies to mitigate market risk, this risk cannot be entirely eliminated.
Market conditions can change rapidly, and while our strategies aim to protect your investment, there is no guarantee against market fluctuations.
Vault-Specific Risks:
Each vault may have its own set of risks depending on the assets and strategies involved.
We provide a risk factor rating for each vault, allowing users to choose a vault that aligns with their risk tolerance and investment goals.
It’s crucial to review these ratings and understand the specific risks before investing.
Understanding these risks and how they apply to your investments in Solomon DeFi Vaults is essential for making informed decisions. While the platform offers robust strategies and professional management, users must always consider their own risk tolerance and investment objectives.
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