What can go wrong, and what to know first.

Risks

1. 01

   Smart contract

   Your funds are held by the Steakhouse USDG vault, which allocates to Morpho lending markets, and the asset is USDG. A bug or exploit in any of these contracts, or in the adapters between them, could cause partial or total loss. StockYield has not audited them and does not claim that they have been audited.

2. 02

   Liquidity

   Withdrawals are served from idle assets and from liquidity in the underlying lending markets. If borrowers are using most of it, a withdrawal can be limited or delayed until liquidity returns. The liquidity figure shown is a snapshot reported by the Morpho API; the amount you can actually withdraw is checked by a simulation before you sign.

3. 03

   Oracle

   Some underlying lending markets value collateral with oracle price feeds. A wrong, stale or manipulated price can trigger incorrect liquidations or leave loans under-collateralized.

4. 04

   Bad debt

   If collateral loses value faster than liquidations can cover a loan, the unpaid part becomes bad debt and can reduce what lenders in that market, and therefore the vault, can withdraw. As a depositor you are not personally liquidated; your exposure is to losses in the underlying markets.

5. 05

   Stablecoin

   USDG is intended to stay close to one US dollar but can trade away from it, and it depends on its issuer, its reserves and the rules that apply to them. A depeg or an issuer problem affects the value of your position directly.

6. 06

   Variable APY

   The APY moves with borrowing demand, market utilization, allocations, fees and rewards. It can increase, decrease or be zero, and a past or current rate is not a promise of a future one.

7. 07

   Vault management

   Which markets receive your funds, the limits on them and the vault's fees are set through the roles configured in the vault, for example by its curator and owner, within the rules of the contract. These settings can change. StockYield does not manage the vault or its allocations.

8. 08

   Network

   Robinhood Chain, its RPC endpoints or the data provider can be slow, unavailable or wrong for a while. That can temporarily prevent you from seeing your position, simulating or sending a transaction. When data is missing StockYield shows “Unavailable” instead of a number.