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TL;DR

  • All Quant Terminal products involve financial risk — you can lose money.
  • Returns are variable and not guaranteed. Past performance does not predict future results.
  • Smart contract, strategy, liquidity, and operational risks apply across Vaults and Agents.
  • Understand your exposure before depositing or running an agent.

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Risk across products

Vaults pool user capital and trade it through automated strategies. Risks include:
  • Strategy loss — the vault can lose money on individual trades. Share price may fall.
  • Withdrawal queue — withdrawals are processed in a two-step queue. Capital may not be immediately available.
  • Smart contract risk — vault assets are held on-chain. Contract bugs, oracle failure, or misconfiguration could affect funds.
  • Liquidity risk — utilization can be high. Not all capital sits idle, so large withdrawals may queue.

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Risk categories

Vault assets are held in on-chain smart contracts. Risks include contract bugs, oracle manipulation or failure, and misconfiguration. Quant Terminal is designed with pausability and fee caps as safety mechanisms — see the Security section for more detail. However, no smart contract system is completely risk-free.
Automated strategies can lose money. Market regimes change, signals decay, and no historical performance guarantees future returns. Strategies may experience drawdown periods before recovering — or may not recover.
Vault capital is actively deployed. Withdrawal requests enter a queue and are fulfilled as liquidity becomes available. In high-utilization conditions, large withdrawals may take time to process. Always factor in withdrawal queue timing when planning your liquidity needs.
Vault operators have administrative authority, including the ability to pause vaults and adjust configuration. Agent performance depends on venue uptime and execution quality. Operational decisions can affect returns even when strategies are sound.
Vaults trade through on-chain protocols and off-chain venues. Agents connect to trading venues like Lighter. If a venue experiences insolvency, hack, or regulatory action, access to funds or positions may be affected.

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How to manage risk

  • Diversify across vaults — different vaults use different strategies and trade different assets. Spreading deposits reduces single-strategy exposure.
  • Monitor share price — share price is updated by the oracle and reflects current vault NAV. Track it regularly in the dashboard.
  • Understand the withdrawal queue — plan your liquidity needs before depositing. Withdrawals are not instant.
  • Size positions appropriately — only deposit or allocate to agents what you can afford to lose. Do not overextend based on historical returns.
  • Check your staking allocation — your deposit capacity is linked to ORAI staking. Allocation rules may change. Review your allocation before making new deposits.
Quant Vaults and Quant Agents involve trading risk. Performance is not guaranteed, and users may lose money. Historical results are provided for transparency only and should not be treated as financial advice.