Risk warning

DeVOLT borrows against your deposit to buy more of the same asset. That is the whole product, and every risk below follows from it. You can lose more than you would have lost holding the asset plainly, and in the worst case you can lose the deposit entirely.

Leverage multiplies the loss as well as the gain

A levered position moves further than the asset does, in both directions. A fall that would be survivable unlevered can close your position at a loss. The multiplier you choose is also the multiplier on the way down.

You can be liquidated, and DeVOLT will not stop it

Liquidation is performed by the lending venue and by third parties who are paid to do it. It needs neither DeVOLT’s involvement nor your consent, and it can happen while you are asleep. The protocol cannot close your position for you, cannot top it up, and cannot act on your behalf if the price moves. DeVOLT sends no alerts, so a fall can pass unnoticed unless you are looking at the position.

The price a market liquidates against is not the market price

Each venue liquidates against its own oracle. An oracle can lag, can be pushed where the underlying liquidity is thin, and can price a wrapped or yield bearing asset by a formula rather than by trade. The Oracles chapter goes through what each kind can and cannot see.

The contracts can fail

This is software holding value, and software has bugs. The main contract is upgradeable by its owner after a public waiting period, the fee is adjustable within a ceiling the contract itself enforces, and the venues DeVOLT builds on carry their own risk independently of anything here. The Security chapter lists those powers rather than implying there are none. The contracts have not been audited by an independent security firm: DeVOLT has reviewed them itself, and that is not a substitute.

A large position in a thin market is yours to size

On many markets the app places no fixed limit on how large a position may be. What it does is check the route against the oracle price, simulate the real transaction at the size you entered and refuse to send it if the simulation fails. Those checks catch a transaction that would fail, and they do not stop one that succeeds at a bad price: a route can pass the app’s checks and still cost a meaningful share of the position, on the way in and again on the way out, when the market is thin compared with what you trade. A position that is large against the depth of its market can also be hard to close at a fair price later, and liquidation, if it comes, happens at the venue’s terms and not yours.

What has not been proven

Much of the recent contract work has been exercised against forks of the live chains and in tests, and has not been driven end to end by a real wallet holding real funds. That does not mean the code is wrong; it means the evidence for it is fork evidence rather than production evidence, and you should size any position with that in mind.

Nothing here is a promise

Every rate, grade, badge and projection in this app is a measurement of a moment, and the moment passes. A yield that is positive today can be negative tomorrow without anything having failed. Do not commit money you cannot afford to lose.