Elastic Protocol Risks

Below are some of the risks you must be aware of before utilizing or depositing assets into Elastic Protocol core or sub-vaults.

Smart Contract Risk

The Elastic Vault contracts are audited and are based on time-tested, robust code and security practices. However, audits and other forms of due diligence do not eliminate all risk. Users are advised to exercise caution when depositing assets and only deposit assets they are can afford to lose.

Economic Risks

The core Elastic Vault relies on the AMPL token for its operations. EEFI emissions and buy and burn activity is dependent on AMPL's rebase cycle. Should AMPL go into an extended negative/neutral rebase cycle (i.e., no positive rebase for 30 days), the vault will continue to operate, but emit no EEFI rewards. Also, buying and burning of EEFI will not take place via the vault. (However, buying and burning of EEFI from non-vault flywheel components will continue.)

Rebase Risks

The Elastic Vault's supply of AMPL will ebb and flow depending on its rebase status. The supply of AMPL in the vault will determine EEFI emissions and buying/burning activity. If AMPL goes into an extended negative rebase cycle, the supply of AMPL in the vault will diminish, meaning lower EEFI emissions and reduced buying/burning activity.

Blockchain and Application Risks

You may experience losses due to technical issues associated with the Ethereum (or other blockchains), plugins, wallets developed by third-parties utilized to access Elastic Protocol products and services. The Elastic Protocol is not responsible for risks associated with the functioning of the blockchain, utilities, networks or other technology used to access or utilize Elastic Protocol-developed applications.

Deposit Risks

Assets held in Elastic Protocol contracts are not subject to deposit insurance protection, investor insurance protection, or any other relevant protection in any jurisdiction.