Risks
Last updated
Last updated
Like all DeFi protocols, YO isn’t risk-free. While YO is built to optimize for the best risk-adjusted yield, there are still risks to be aware of when depositing your crypto:
YO vaults rely on smart contracts to operate. While we’ve taken every measure to secure the protocol, including audits and continuous monitoring, there’s always a risk of a bug or vulnerability in the code, whether in YO or in the underlying protocols we allocate to.
YO allocates your funds across a curated list of pools from vetted protocols, but every DeFi protocol comes with its own risks. These include things like oracle manipulation, bad debt, and governance exploits. We mitigate this by only investing in pools with solid fundamentals and by using to avoid protocols with excessive risk.
YO is multi-chain, so it interacts with multiple blockchains. We are currently live on Ethereum and Base, with more chains coming soon. If a specific chain goes down, is congested, or suffers from a consensus failure, it may affect the vault performance.
Most of the time, you can redeem your assets instantly. But if a large number of users want to exit at the same time or a vault has heavy exposure to less liquid pools, your withdrawal may be delayed for up to 24 hours as the protocol unwinds positions.
YO directs funds to a variety of pools and strategies. YO often runs advanced DeFi strategies like automated carry trades or concentrated liquidity farming in order to generate higher yields. Underlying pools and strategies are all verifiable onchain. These pools and strategies can sometimes underperform or incur losses due to market volatility or execution lag.
Moving assets across chains involves bridging, which introduces another layer of risk. YO minimizes bridging risk by only rebalances when a better opportunity is confirmed. However, in the rare case that a bridge is compromised, funds could be at risk.
YO is designed to reduce your exposure to unnecessary risk, but it can’t eliminate risk entirely. That’s why we optimize for risk-adjusted yield—maximizing returns while keeping risk in check.
Exponential.fi has a comprehensive report of YO protocol here:
