> For the complete documentation index, see [llms.txt](https://docs.hyperhive.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hyperhive.finance/risk-disclosure.md).

# Risk Disclosure

HyperHive deploys deposited capital into leveraged and market-facing strategies. Yield is not guaranteed, and deposits can lose value — including in ways that are not the result of anything going wrong with the protocol itself. The risks below are inherent to the strategies described in this document.

### Smart contract risk

The vault, the strategy adapters, and every external protocol they route into are software, and software can contain defects. A failure in any one of them can result in partial or total loss of deposited capital. Audits reduce this risk but do not remove it.

### Strategy risk

**Looped lending** — looping amplifies both return and loss. A fall in collateral value or a spike in borrow rates can push a position toward liquidation, and high utilization in a lending market can prevent the loop from being unwound at the moment it most needs to be. If borrow rates rise above supply rates, the loop earns a negative spread until it is unwound.

**Looped staking** — an LST can trade below the value of the asset it represents. Because the LST is posted as collateral, a depeg reduces borrowing power and can trigger liquidation even though the underlying stake is unaffected. Unbonding periods mean the LST cannot always be redeemed for the underlying on demand.

**Delta-neutral** — hedging removes directional exposure, not all exposure. Funding rates can turn negative and stay negative, and the basis can widen against a position before it converges. For HIP-3 strategies referencing a traditional market, the reference market is closed outside its regular hours while the perpetual continues to trade, so gaps cannot be hedged in real time. Either leg can be liquidated if margin is not maintained.

### Liquidity & withdrawal risk

Redemptions require positions to be unwound. Under normal conditions this is immediate, but in thin or stressed markets a large redemption may settle at a worse exchange rate than the quoted one, or take longer to process. Redeeming during a period of market stress is the most likely time to realize a loss.

### Oracle & pricing risk

The vault exchange rate and the USD value used for mining both depend on external price feeds. A stale, manipulated, or failed oracle can misprice deposits, redemptions, and emissions.

### Counterparty & venue risk

The protocol depends on HyperCore, HyperEVM, the lending markets it supplies, and the issuers of any LST it holds. An outage, exploit, or governance decision at any of these venues affects HyperHive positions directly, and none of them are under the protocol’s control.

### Operational risk

Harvesting depends on a keeper network. If keepers fail to run, compounding pauses and positions can drift from their target parameters until harvest is triggered manually. Strategy weights and risk parameters are set by the team pre-launch and by governance afterwards, and those decisions carry judgment risk.

### Token risk

HIVE has no market price before the liquidity event, and no price is guaranteed after it. Emissions are fixed while TVL is not, so the amount mined per dollar deposited falls as deposits grow. The USDC subsidy paid to HIVE stakers in the early phase is discretionary and steps down over time.

### Regulatory risk

The regulatory treatment of the protocol and of HIVE differs by jurisdiction and may change. Access to the protocol, to mining, or to secondary markets may become restricted in some jurisdictions.

### No guarantee

Nothing in this document is investment advice or a promise of return. Historical or modelled yields do not predict future results. Participants should assess their own risk tolerance and deposit only what they can afford to lose.

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