Risk Disclosure

This Risk Disclosure Statement is provided to inform users of the potential risks associated with interacting with the Aurelia Protocol (“Aurelia” or “the Protocol”). By using any part of the Protocol, including but not limited to Metavaults, leveraged strategies, DEX liquidity, or governance participation, you acknowledge that you have read, understood, and accepted the following risks.

1. Smart Contract Risk Aurelia is composed of smart contracts deployed on public blockchains. While these contracts undergo audits and continuous monitoring, they may still contain vulnerabilities or bugs that could be exploited. Exploits may lead to partial or total loss of user funds.

2. Market Risk & Price Volatility Participation in DeFi strategies may expose users to significant price fluctuations. Token values, LP positions, and yield-generating assets are all subject to market volatility, which may lead to impermanent loss, liquidation, or unfavorable returns.

3. Oracle Risk The Protocol relies on both third-party (e.g., Chainlink) and internal price oracles. Incorrect or manipulated oracle inputs can result in inaccurate pricing, faulty liquidations, or protocol-wide instability.

4. Liquidity Risk Vaults and lending markets may experience periods of low liquidity, during which withdrawals, loans, or trades may be delayed, slippage may increase, or positions may be forcibly adjusted. While Aurelia uses a buffer system to mitigate this, it cannot eliminate liquidity constraints.

5. Strategy Risk Aurelia integrates external protocols (e.g., Pendle, GMX, Morpho) and yield sources. Each comes with its own risk profile, including smart contract risk, governance risk, and market failure. Although strategies are whitelisted, governance-approved, and risk-rated, outcomes are not guaranteed.

6. Leverage Risk Using leveraged strategies via the Protocol’s undercollateralized lending system can amplify both gains and losses. Leveraged positions may be liquidated under certain conditions, potentially resulting in loss of collateral and fees. These positions carry heightened volatility and risk.

7. Regulatory Risk Decentralized finance is a rapidly evolving space. Changes in regulations or enforcement actions could impact user access to the Protocol or the legality of certain features in specific jurisdictions. Users are solely responsible for complying with their local laws.

8. Governance Risk Aurelia uses a staking-based governance model. Although designed to be fair and aligned, governance mechanisms may be influenced by concentrated token holders, bribes, or low voter turnout. Changes made through governance may affect the risk profile or parameters of the Protocol.

9. Technology & Infrastructure Risk Interacting with the Protocol requires using wallets, RPC endpoints, or interfaces that may be compromised, misconfigured, or suffer downtime. Users must verify that they are accessing the correct contracts and interfaces and remain vigilant about phishing or spoofed apps.

10. Loss of Access Loss of private keys, wallet access, or mismanagement of transaction execution can result in irreversible loss of funds. The Aurelia team cannot recover lost assets or keys under any circumstance.

Final Note

DeFi involves substantial risk and is not suitable for all participants. You should not allocate funds that you cannot afford to lose. Always conduct your own research (DYOR) and consult with a qualified advisor if needed.

By interacting with the Aurelia Protocol, you accept full responsibility for your decisions and waive any claim against its contributors, developers, or affiliated parties.