Risks
This is DeFi. There is always risk. The goal is to be clear, not scary.
Core risks
Smart contract risk Bugs can exist, even in audited code.
Money market risk If an underlying market breaks or pauses, the vault inherits that risk.
Liquidation risk All vaults use leverage. In extreme conditions, liquidation is possible.
Oracle risk Bad pricing can cause bad decisions. Vaults use checks, but oracle risk never goes to zero.
Liquidity risk If unwind liquidity disappears, withdrawals can fail until liquidity returns.
What Ceres does about it
• target LTV with a safety buffer • caps and limits • slippage bounds and TWAP checks • rebalancing to stay near target exposure • delayed changes for critical modules
Ceres makes execution easier. It does not delete risk.
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