Aperture Finance


Risks associated with Avalanche CMLF & BMLF strategies


Market Volatility

  • In extremely volatile market conditions, Aperture vaults may have to rebalance at a greater than ideal frequency, realizing the impermanent loss on each rebalancing, causing the strategy's performance to drop significantly or even turn negative. If volatility is general one directional the vault will not suffer as badly compared to naked LPing. However, if volatility is up & down the vault could realize more IL than naked LPing.

Smart Contract Risks

  • While our smart contracts have been audited by third-party firms, they could theoretically have vulnerabilities. Integrated 3rd-party platforms like the AMMs or lending markets we build on can also carry smart contract risks.