Risks

All yield carries risk. Higher rates usually mean higher risk. You could lose some or all of what you deposit, and Pecun can't refund losses caused by a protocol or a market.

The main risks

Smart contracts

A bug or exploit in a protocol's code can drain funds, even in audited, long-running protocols.

Depegs

Stablecoins and staked tokens can lose their peg and trade below the value they track.

Market risk

Prices move. Strategies can lose money, and leveraged or liquidity strategies can lose more than expected.

Liquidity

A vault can be slow to pay out, pause withdrawals or have a long queue when many people exit at once.

Protocol decisions

Protocols can freeze, pause, change or shut down products, and their managers can make mistakes.

Providers

Wallets, routers, bridges and data providers can fail, be delayed or misprice a transfer.

Your access

If someone else gets your login, or you lose it, funds can be lost.

Reducing your risk

Spread deposits across protocols, prefer vaults with deep liquidity and a long record, read how withdrawals work before you deposit, and only put in what you can afford to lose.