> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dionysus.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Risks

> What can hurt you here, honestly.

Dionysus removes some classic DeFi risks by construction — pooled counterparties, hidden fee drag, exit permission — and cannot remove others. This section is the honest inventory. Read it before depositing; size positions as if the bad cases will eventually happen, because across enough time some of them will.

<CardGroup cols={2}>
  <Card title="Price exposure (delta)" icon="chart-line" href="/risks/price-exposure-delta">
    You hold volatile assets. They can go down. Nothing about active management changes that.
  </Card>

  <Card title="Rebalancing cost (gamma)" icon="arrows-rotate" href="/risks/rebalancing-cost-gamma">
    Concentrated liquidity structurally sells winners and buys losers. Yield must outrun that drag.
  </Card>

  <Card title="Depegs and stables" icon="scale-unbalanced" href="/risks/depeg-and-stables">
    "Stable" pairs are calm until they very much aren't.
  </Card>

  <Card title="Smart contract risk" icon="file-code" href="/risks/smart-contract">
    Vaults, venues, tokens — all code, all capable of failure.
  </Card>

  <Card title="Venues and emissions" icon="store" href="/risks/venue-and-emissions">
    Yield depends on venues that can fade, and reward tokens that usually depreciate.
  </Card>
</CardGroup>

## The one-paragraph version

Your deposit is converted into volatile on-chain positions. The dominant risk is simply **the market**: the assets your strategy holds can fall, and no agent can harvest fast enough to offset a crash. Behind that sit structural costs (rebalancing drag), tail events (depegs, venue failures, contract bugs), and the dependency of yield itself on emission programs that decay. The agent manages these risks; it does not eliminate them.

<Warning>
  Deposit only what you can afford to see drawn down. Nothing on these pages — or anywhere in Dionysus — is investment advice.
</Warning>