⚠️ Risks
Using Solid comes with certain risks. While the protocol is built to provide a simple way to earn risk-adjusted yield, it’s important to understand the potential downsides before depositing funds.
Smart contract risk
Solid is powered by smart contracts that automate minting, yield allocation, and redemptions. Even with audits, monitoring, and security best practices in place, there’s always a chance of a bug or exploit in either Solid’s own contracts or those of the protocols it integrates with.
Protocol risk
Funds deposited into Solid are spread across carefully selected DeFi protocols. Each carries its own set of risks, including governance attacks, oracle issues, or bad debt. To limit exposure, Solid only works with protocols that demonstrate strong fundamentals and proven reliability.
Network risk
Because Solid operates across multiple chains (Ethereum, Polygon, Base, Arbitrum, Fuse), events like chain congestion, downtime, or consensus errors could temporarily affect the vault or delay transactions.
Liquidity risk
Withdrawals are designed to be fast, but in extreme cases—such as many users exiting at once 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 allocating funds across a mix of on-chain strategies. Market swings, underperforming pools, or execution delays may cause these strategies to deliver lower-than-expected returns, or even temporary losses.
Bridging risk
Moving assets between chains requires bridges, which always involve a degree of risk. Solid reduces this by minimizing unnecessary transfers and using established bridging solutions, but in the unlikely event of a bridge failure, deposits could be affected.
Final note
Solid’s goal is to help you earn yield while keeping risk managed. Although the protocol reduces exposure where possible, risk is never completely removed. Make sure you understand these factors before depositing.
Users are encouraged to do their own research.
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