Risk Disclosure
Protocol exposure
Emerald Vault has 100% exposure to Pendle Finance smart contracts. Yield is generated via principal tokens (PTs) purchased on Pendle automated market makers (AMMs). Diversification within the vault is across underlying stablecoin assets and blockchain networks, not across yield venues or protocols.
Smart contract risk
The Emerald Vault smart contracts (EmeraldVault.sol and EmeraldPendleAdapter.sol) have not been independently audited by a third-party security firm. Smart contracts may contain vulnerabilities that could result in partial or total loss of deposited funds.
Stablecoin depeg risk
The vault holds positions in principal tokens backed by stablecoins including sUSDe, sDAI, and other synthetic or wrapped stablecoin assets. These underlyings may lose their peg to $1.00, which would reduce the value of the position. The vault applies risk haircuts (0%, 10%, 20%) per underlying to account for this risk, but haircuts do not eliminate the possibility of loss.
Liquidity and withdrawal risk
The vault maintains a 10% idle reserve for immediate withdrawals. Withdrawals exceeding the reserve require liquidation of active PT positions on Pendle AMMs, which may incur slippage. In extreme market conditions, AMM liquidity may be insufficient for timely liquidation.
Keeper and operational risk
The vault relies on an off-chain keeper to deploy capital, evaluate positions, execute rotations, and handle maturity rollovers. Keeper downtime, misconfiguration, or failure could result in suboptimal allocation or delayed operations. The keeper operates on a single private key without timelock or multisig protection.
Regulatory risk
Decentralized finance products operate in a rapidly evolving regulatory environment. Access to or use of the vault may be restricted or prohibited in certain jurisdictions. Users are responsible for compliance with applicable laws.
No guarantees
Past performance does not indicate future results. Projected yields are estimates based on current market conditions and may change without notice. This product is not financial advice. Deposit only what you can afford to lose.