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RISK MODEL

Understand the risks before you invest

TL;DR

Stone Vault is safer than most DeFi because:

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No admin keys = no rug pulls
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Only battle-tested protocols
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Only uncensorable stablecoins

But remember: DeFi always has risks. Never invest more than you can lose.

LOW RISK: WHAT WE PROTECTED

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Rug Pull Protection
Contract is immutable. No one can change the code or steal funds.
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Censorship Protection
Only stablecoins without blacklist functions (DAI, LUSD, crvUSD).
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Diversification
Funds split across 3 protocols. One failure won't lose everything.

MEDIUM RISK: PROTOCOL RISKS

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Smart Contract Risk
Bugs in Spark, Aave, or Curve could cause losses. These protocols have $10B+ TVL and years of track record, but bugs are always possible.
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Stablecoin Depeg
If DAI, LUSD, or crvUSD loses its $1 peg, your deposit value decreases. Historical depegs have been temporary (hours/days).
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Yield Variance
APY changes based on market demand. High demand = lower rates.

SMALL DEPOSIT FEE

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Entry Fee: ~5% on deposits under minimum
The vault has a minimum effective deposit threshold. If you deposit a small amount (less than ~$100 equivalent), rounding and virtual offset mechanics may result in receiving fewer shares than expected — effectively a ~5% loss. This protects the vault from inflation attacks. For optimal results, deposit larger amounts.