Risk & Security

There are several risks when interacting with Orange Vaults.

Orange takes a short position with a lending protocol by paying interest.
Impermanent loss(IL) and Loss vs Rebalance(LVR) are the major risks when providing a concentrated liquidity position to Uniswap V3
Orange could experience a loss if IL, LVR, or interest for the hedge is higher than the earned fees
Orange’s ETH/USDC position might get exposed to ETH more if there is a sudden change in price and thus might result in the position's IL. In this case, Orange tries to maintain delta neutrality by rebalancing.

Orange takes security seriously. Our smart contracts have been audited by WatchPug. However, smart contracts still have risks, and we encourage users to only deposit funds they can afford to lose.
Orange vaults interact with multiple protocols and are exposed to other smart contracts' security standards.

Last updated 1 year ago

There are several risks when interacting with Orange Vaults.

Orange takes a short position with a lending protocol by paying interest.
Impermanent loss(IL) and Loss vs Rebalance(LVR) are the major risks when providing a concentrated liquidity position to Uniswap V3
Orange could experience a loss if IL, LVR, or interest for the hedge is higher than the earned fees
Orange’s ETH/USDC position might get exposed to ETH more if there is a sudden change in price and thus might result in the position's IL. In this case, Orange tries to maintain delta neutrality by rebalancing.

Orange takes security seriously. Our smart contracts have been audited by WatchPug. However, smart contracts still have risks, and we encourage users to only deposit funds they can afford to lose.
Orange vaults interact with multiple protocols and are exposed to other smart contracts' security standards.

Last updated 1 year ago