Market risk
Crypto markets are volatile and strategies can fail. There is no guaranteed return. Your capital is exposed to live trading PnL.Manager risk
A Direct Vault manager can draw down materially before policy enforcement triggers. Mitigations: capped vault TVL during beta · manager-set DD shutdown limits enforced on-chain · Phase 3 insurance fund.Oracle risk
NAV reporting depends on the Hyro oracle. This is the single largest trust assumption in Phase 1. A successful oracle attack could mint shares at a false NAV — the primary residual smart-contract risk. Mitigations: independent watchdog cross-validation today · multi-signer oracle in Phase 2 · zkTLS proofs of CEX state in the long-term roadmap. Full detail on trust assumptions →Counterparty risk — Bybit
All trading capital sits on Bybit during the active trading window. Mitigations: read-only API keys (trade-only, no withdrawal permission) · multi-exchange diversification underway · on-chain execution via Drift + Phoenix planned for Phase 4, removing CEX counterparty risk for the on-chain track.Counterparty risk — HyroTrader operator
HyroTrader operates the Bybit sub-accounts and the bridge between vault and exchange. Mitigations: multi-sig (Squads 3/5) on operator wallets · on-chain audit trails · a 5-year track record with $5M+ paid out · DAO-controlled operator wallet planned for Phase 4.Smart contract risk
Audited code can still contain vulnerabilities. Mitigations: Ackee Blockchain audit in progress, results published before mainnet · capped initial TVL during beta bounds exposure.What protects you, summarized
On-chain everything
Deposits, withdrawals, shares, fees, and payouts all settle on-chain and are independently verifiable.
Programmatic DD limits
Drawdown shutdowns and leverage caps are enforced by smart contract, not discretion.
Manager skin-in-the-game
Direct Vault managers stake 5% of TVL, locked and visible on-chain.
Proof of reserves
The payout vault balance is queryable on-chain at any time.
This is not financial advice. Detailed risk disclosures are published before mainnet launch.