Risk Assessment
Last updated
Last updated
The Quadrat Protocol has close to zero risk of smart contract hack because it uses the most popular market standard protocol to interact with Uniswap v3 Pool, which has been audited and tested by major Security Audits.
The current Risk Profile that we would like you to take into account when you make deposits in the Strategy is next:
1) Risk of Impermanent Losses. There is the same risk when you deposit assets in any pool of Uniswap v2 or v3. The Strategy's auto-rebalancer will optimize the potential IL by trading your assets when it possible, but it can't cover your IL 100%. There are a few strategies for how you can protect yourself and cut 100% of IL using the current DeFi tools or CEXes.
2) Risk of Private Asset Manager. When you deployed your assets into OxPlasma strategies you are fully protected from this risk. If you choose any Strategies that are managed by External Private Managers you have a risk of the Asset Manager is being less capital-efficient or does not manage the pool range properly or being attacked by MEV bots. This may entail the risk of partial or complete loss of the funds of the strategy and depositors. Invest your assets only in a Strategy with a reliable Asset Manager.
If you see a risky Asset Manager you can contact the protocol governance in Discord chay which will investigate the incident and may block the Asset Manager.