FAQ

Some of the most frequent asked questions

What are the risks for leveragers?

Apart from the normal risks of Defi protocols like hacks or a catastrophic set of slashing events, one of the main risks for leveragers is that the staking rates of all the assets end up being lower than the lending rate they committed to pay. In that case, the leveragers would lose capital, depending on the delta between the lending rate and the staking rate.

How do I settle my leverage position?

Leverage positions are automatically settled. The protocol runs infrastructure to trigger the settlement and split rewards between suppliers and leveragers.

What are the risks for suppliers?

Apart from the normal risks of Defi protocols like hacks, the risk suppliers face are at the validator or liquid staking protocol level (e.g. slashing). A supplier can choose to use protocols with slashing protection to try and minimize this risk.