Protocol
Risks
What can go wrong when you provide liquidity, use agents or hold $VYLO.
Market risks#
- Impermanent loss: price moves can leave you with less value than holding.
- Out of range: concentrated positions earn nothing while price is outside the range.
- Fee APR is backward looking. Volume, and therefore fees, can drop at any time.
- Low liquidity pools have high slippage and can be manipulated.
Technical risks#
- Smart contract bugs in VYLO programs or in the pools they interact with.
- Token risks: mint or freeze authority, Token-2022 extensions, concentrated holders.
- Data outages: if a data source is down, its pools are hidden until it recovers.
- Network congestion: transactions can fail or need higher priority fees.
Agent risks#
Autopilot acts within your rules, but inside them it can still lose value, for example to divergence loss when it moves a position. Only put in what you are willing to lose. The agent can never send funds to a wallet, and you can stop and withdraw any time.
Impermanent loss at a glance#
IL(r) = 2 x sqrt(r) / (1 + r) - 1
| Price change | Loss vs holding |
|---|---|
| 1.25x | -0.6% |
| 1.5x | -2.0% |
| 2x | -5.7% |
| 3x | -13.4% |
| 5x | -25.5% |