# Risks Understanding risks is essential before deploying capital. Stazys implements security measures, but **no system can eliminate all risks**. Only invest what you can afford to lose. ### Stazys-Specific Risks * **Strategy Underperformance** - Strategies may fail to generate expected yield. Market conditions change, and past performance doesn't guarantee future results. Test thoroughly in Demo Mode before deploying capital. * **Price Volatility** - Token prices fluctuate constantly. Even with yield generation, underlying asset depreciation can result in net losses. A strategy earning 10% APY might lose 15% from price movements. * **Protocol Dependency** - Stazys strategies interact with multiple DeFi protocols (Kamino, Jupiter, Hylo, etc.). **If any of these protocols fail, experience exploits, or face issues, your strategies are impacted**. Diversification helps but cannot eliminate this risk. * **Execution Risk** - Technical issues, network congestion, or protocol changes could affect strategy execution, potentially impacting performance. ### General DeFi Risks * **Smart Contract Risk** - Bugs or vulnerabilities in protocols, even audited ones, can lead to loss of funds * **Liquidity Risk** - Difficulty withdrawing or executing trades during market stress * **Oracle Risk** - Price oracle failures or manipulation affecting vault operations * **Regulatory Risk** - Changing regulations could affect protocol operations * **Network Risk** - Solana congestion or outages delaying execution * **Impermanent Loss** - Losses from liquidity provision when token prices diverge ### Risk Mitigation Stazys will undergo multiple protocol audits before mainnet to ensure security and reliability. In the future, a special risk channel with risk signals will be implemented, allowing users to adapt dynamically against exploits and other protocols malfunctions. DeFi investments are not guaranteed and carry inherent risks. Monitor your vaults regularly and diversify your holdings. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://stazys.gitbook.io/stazys-docs/security/risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.