⚠️ Risk Disclosure
Last updated October 16, 2025
This page outlines the risks of using Solid’s platform and holding digital assets. While Solid provides a user-friendly way to earn yield and spend it via the Solid Visa Card (issued through Bridge), digital assets remain high-risk and volatile. You may lose some or all of your investment.
By using Solid, you acknowledge and accept these risks.
Protocol and Technical Risks
Smart Contract Risk
Solid is powered by smart contracts that automate minting, yield allocation, and redemptions. Even with audits, monitoring, and security best practices, there is always a chance of a bug or exploit in Solid’s contracts or in protocols it integrates with.
Protocol Risk
Funds deposited into Solid are allocated across carefully selected DeFi protocols. Each carries risks, including governance attacks, oracle issues, or bad debt. Solid mitigates this by working only with protocols that demonstrate strong fundamentals and proven reliability.
Network Risk
Solid operates across multiple chains (Ethereum, Polygon, Base, Arbitrum, Fuse). Events such as chain congestion, downtime, or consensus failures could delay transactions or temporarily affect vault operations.
Liquidity Risk
Withdrawals are designed to be fast. However, in extreme cases—such as large, simultaneous withdrawals or positions held in less liquid pools—funds may take longer to release (up to 24 hours) while assets are rebalanced.
Strategy Risk
Solid generates yield by deploying funds into different strategies. Market swings, underperforming pools, or execution delays may result in lower-than-expected returns or temporary losses.
Bridging Risk
Moving assets between chains requires bridges, which carry inherent risks. Solid reduces exposure by minimising unnecessary transfers and using established bridge solutions, but in the unlikely event of a bridge failure, deposits may be impacted.
General Crypto Risks
Market Volatility
Digital asset values can rise or fall sharply. Regulatory changes, technology shifts, and market sentiment drive volatility and may cause sudden losses.
Asset Price Risk
Assets can lose value entirely if adoption slows or liquidity disappears.
Regulatory Risk
Not all assets accessible through Solid are issued under MiCA or equivalent authorisation. These carry higher risk, less transparency, and possible redemption challenges.
Custody and Self-Responsibility
Solid is non-custodial. You control your wallet and private keys. If you lose your credentials or keys, your funds cannot be recovered by Solid or Bridge.
Concentration Risk
Putting too much capital into one or a few assets increases risk. Diversification reduces exposure.
Network Congestion
High transaction volume on underlying blockchains may delay activity or increase fees.
Fraud and Irreversibility
Crypto markets are exposed to scams, phishing, Ponzi schemes, and pump-and-dumps. All blockchain transactions are final and irreversible.
Security Risk
Wallets and platforms are targets for hacking, malware, and social engineering. Users must take strong security precautions.
Yield and DeFi Risks
Using DeFi protocols always carries unique risks, including:
Smart contract vulnerabilities
Impermanent loss in liquidity pools
Slashing in staking protocols
Complexity and governance risks
Taxation
Tax treatment varies by jurisdiction. You are solely responsible for tracking, reporting, and paying taxes arising from your use of Solid. Solid does not provide tax advice.
Final Note
Solid’s goal is to help you earn yield while keeping risks managed. However, risk is never completely removed. Please make sure you understand these factors before depositing.
By using Solid, you accept that:
Crypto assets are volatile and may result in total loss.
You are solely responsible for managing your keys, risks, and taxes.
Solid provides tools for yield and real-world spending but cannot eliminate the risks inherent in crypto markets.
Users are strongly encouraged to do their own research.
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