Docs>Risks & reference>Risks, plainly

Risks, plainly

What can go wrong, in plain words. Read this before you deposit.

The price of your asset can move

Protect keeps the amount of the asset you chose, not its dollar value. If you protect ETH or BTC, the value of what you hold will rise and fall with the market.

Produce carries market risk

Providing liquidity means your position changes as traders buy and sell against it. When prices move sharply, the position can end up worth less than if you had simply held the assets — sometimes by more than the fees earned. Productive capital can lose value.

Returns depend on activity

Produce earns only when people trade. If trading slows, fees slow too. There is no minimum return.

Smart contract risk

AjoHive runs on smart contracts, and so does the market infrastructure beneath it. Even carefully built and reviewed contracts can contain flaws, and a flaw could lead to loss of funds.

Stablecoin risk

USDG is designed to track the US dollar, but that depends on its issuer keeping it fully backed and redeemable. Stablecoins have lost their peg before, usually during periods of stress.

Withdrawals can take longer in stress

Most Produce withdrawals are paid from the buffer. If many people withdraw at once, or markets are unusually volatile, the vault may need to unwind part of its position first, and emergency controls may pause new activity for a time.

Rules can change

The rules around digital assets are still being written in many places. Changes could require AjoHive to adjust how it works or where it’s available.

AjoHive is not a bank

Your funds are not covered by deposit insurance, and nothing in these docs is financial advice. Only deposit what you’re comfortable holding in digital assets. The full Risk Disclosure is linked in the footer of every page.