Royco Vaults: Risks

In order of impact:

1. Smart contract risk: while the Royco Vaults are built on BoringVault (with >$3b) inside, there is a small chance there is an open exploit in these contracts. This would result in a loss of funds event.

2. Curator & Whitelister collude to steal funds

Curator risk:

1. Curator risk: the curator fails to rebalance into the highest-earning opportunity. This would result not result in material losses.

2. Underlying market exploit: one of the markets that the Royco Vault has allocated into gets exploited. This could result in either a partial or entire loss of funds event.

3. Intermediate asset risk: USDC vault allocates into the USDC -> stkGHO market and GHO depegs

4. Incentive Distribution risk: Curator fails to distribute rewards correctly, gives them to the wrong people or runs off with them

5. Bad allocation risk: broken weiroll recipe or botched rebalance results in slippage or burning of funds

6. (Crosschain only) — Bridge risk, chain risk

7. (Crosschain Only) — Slippage risk on assets which must be sold before bridging back to mainnet

dApp risk:

1. dApp doesn’t follow through with promises on points or Allo % affecting apr (edited)