Please read this risk disclaimer carefully before using Money Legos. By using the Protocol, you acknowledge and accept the risks outlined below. If you do not agree with any of these risks, you should not use the Protocol.
Smart Contract Risk: Smart contracts are immutable once deployed. If there is a bug or vulnerability in the code of the Protocol or any of the underlying strategies, it could lead to a loss of funds or other unintended consequences. Even with thorough auditing, there's no guarantee of absolute security.
Strategy Risk: Money Legos deploy funds into various strategies that interact with other DeFi platforms. A failure or vulnerability in any of these underlying platforms or strategies could result in a loss of funds.
Economic Risks: Money Legos involve various economic risks, including but not limited to impermanent loss, liquidation, and slippage. The performance of strategies can be unpredictable and may result in losses.
Liquidity Risk: There's no guarantee that liquidity will always be available when you wish to withdraw or interact with the Protocol. Reduced liquidity can lead to increased slippage or inability to exit a position.
Composability Risk: DeFi protocols often build on top of or integrate with other protocols. A change or failure in one protocol can have cascading effects on others, including the Protocol you're interacting with.
Oracle Failure: If the Protocol relies on external price oracles, there's a risk of manipulation, failure, or inaccuracies in these oracles, leading to incorrect data and potential losses.
Network Risk: The blockchain network on which the Protocol operates might experience congestion, high fees, or other issues, which can impact the Protocol's operations and user interactions.
Governance Risk: Changes to the Protocol, often decided by token-based governance, can affect its functionality, the security of funds, or the yield of strategies.
Regulatory Risk: The legal and regulatory status of yield farming and yield aggregation is uncertain in many jurisdictions. There's a risk of regulatory actions or changes that could adversely affect the Protocol or its users.
APR/ROI Misrepresentation: The advertised annual percentage rate (APR) or return on investment (ROI) can be highly variable and is no guarantee of future performance. It's essential to understand how these figures are calculated and the risks associated with them.
Volatility Risk: Assets deposited into the Protocol and potential rewards can be highly volatile, leading to significant price fluctuations.
Custodial Risk: While many DeFi protocols are designed to be non-custodial, there's always a risk associated with sending tokens to a smart contract. Always ensure you're interacting with the correct contract address and understand the terms of the Protocol.
Competitive Risks: The DeFi landscape is rapidly evolving. New protocols or innovations could render existing yield aggregation platforms less attractive or obsolete.
This Disclaimer is not exhaustive, and there may be other risks associated with yield farming and yield aggregation. Always conduct your own research and consult with financial, legal, and technical experts before interacting with any DeFi platform. Remember that all investments carry risks, and past performance is not indicative of future results.