Risk Disclosure
Comprehensive disclosure of financial, technical, and regulatory risks.
Comprehensive disclosure of financial, technical, and regulatory risks.
Last Updated: October 1, 2025
This Risk Disclosure Statement outlines the material risks associated with using the Metalos platform and participating in decentralized finance (DeFi) yield strategies. You should read this document carefully and ensure you understand all risks before depositing assets.
DeFi carries significant financial risk. Only deposit funds you can afford to lose entirely. Metalos is not suitable for all investors.
You could lose your entire deposit through smart contract exploits, protocol failures, market crashes, or operational errors. There is no insurance, deposit protection, or guarantee that you will recover any portion of your investment. Vault contracts are immutable and cannot be modified to recover funds even if bugs are discovered.
Digital asset prices are highly volatile and can experience double-digit percentage swings in minutes. Your portfolio value may decline rapidly and substantially. Even "stable" strategies can experience unexpected volatility during market stress events.
Liquidity provision strategies (Not Very Risky and Moderately Risky tiers) expose you to impermanent loss. When the price ratio between paired assets changes significantly, your LP position may be worth less than simply holding the underlying assets. High volatility compounds this effect.
APY projections are estimates based on current market conditions. Actual returns may be significantly lower or even negative. Historical performance does not predict future results. Yields can drop to zero or turn negative due to protocol changes, market conditions, or exploit events.
Smart contracts may contain bugs, design flaws, or security vulnerabilities despite audits. Exploits could drain vault funds partially or entirely. Upgrades to contracts may introduce new vulnerabilities. Even audited, battle-tested contracts have been exploited in the past.
Metalos integrates with multiple third-party protocols (Morpho, Aerodrome, Lido, etc.). Vulnerabilities or failures in any dependency can impact your funds. The more protocols involved in a strategy, the higher the cumulative risk.
Some strategies rely on price oracles to determine asset values or trigger actions. Oracle manipulation, failures, or outages could cause incorrect valuations, failed transactions, or exploitable conditions.
The Metalos automation layer coordinates complex multi-step transactions. Bugs in our code could result in failed deposits, incorrect allocations, or funds stuck in intermediate states. While we test thoroughly, edge cases may exist.
During market stress or vault-specific issues, you may be unable to withdraw funds quickly. Large withdrawals may experience significant slippage. Some strategies may implement withdrawal queues or cooldown periods.
Low-liquidity assets (like governance tokens) are susceptible to price manipulation. This can cause rapid losses or prevent profitable exits. Flash crashes may trigger liquidations or forced rebalancing at unfavorable prices.
During systemic market crashes, supposedly uncorrelated strategies may move together, eliminating diversification benefits. All crypto assets tend toward high correlation during crisis periods.
If you lose your private keys or seed phrase, you permanently lose access to your funds. Metalos cannot recover lost keys. If someone gains access to your keys, they can steal your assets, and Metalos cannot reverse unauthorized transactions.
Bugs in the Metalos interface could display incorrect information, process transactions incorrectly, or prevent access to your funds. While we test thoroughly, software errors occur.
Metalos relies on third-party services (RPC providers, APIs, hosting). Outages of these services may temporarily prevent access to the Platform or cause data inaccuracies.
DeFi regulation is evolving rapidly. Future regulations may:
DeFi activities may trigger tax events (yield as income, capital gains on appreciation, etc.). Tax treatment varies by jurisdiction and may be unclear. You are solely responsible for tax compliance, and unexpected liabilities could exceed your returns.
Depending on your jurisdiction, certain DeFi activities or tokens may be considered securities, creating registration requirements or use restrictions. Legal classification of DeFi products remains uncertain in many jurisdictions.
Your access to DeFi may be restricted based on geographic location or sanctions lists. Violations of sanctions could result in severe legal penalties.
As Metalos transitions toward community governance, vault selections, fee structures, and platform parameters may change based on governance votes. Governance decisions may negatively impact your positions or the overall platform.
When prediction market-based governance launches, market manipulation, low participation, or incorrect market predictions could lead to poor governance outcomes affecting platform operations.
AI-generated research and recommendations may contain errors, biases, or incomplete analysis. Automated agents may miss critical risks or make flawed recommendations. Governance decisions based on AI research carry additional uncertainty.
Third-party protocols may change fee structures, strategy parameters, or security policies through their own governance processes. Metalos cannot control these changes.
Despite being decentralized, protocols involve counterparties (liquidity providers, borrowers, protocol teams). Counterparty actions or failures can impact your positions.
New protocol integrations approved through governance may introduce unforeseen risks. Even with thorough vetting, unexpected interactions between protocols can create vulnerabilities.
While risk cannot be eliminated, you can manage it:
BY USING METALOS, YOU ACKNOWLEDGE:
THIS IS NOT PROFESSIONAL ADVICE. Consult qualified financial, legal, and tax professionals before making investment decisions. DeFi is experimental technology with substantial risks.
If you have questions about risks or need clarification, contact:
Email: support@metalos.xyz
Documentation: https://metalos.xyz/docs
This Risk Disclosure will be reviewed by legal and compliance counsel before final publication. It is designed to inform but not to provide comprehensive legal protection. Users should conduct their own risk assessment and consult professionals before participating in DeFi.