Safety

Risks

LP is a short-volatility book with operational moving parts. Sitting out removes some of those risks and none of the token risk.

Market

  • Impermanent loss / LVR. A concentrated range loses more to realised vol than a full-range book. Width selection exists because of this, not in spite of it.
  • Sit-out. When the bot holds 50/50 it earns no LP fees. You still hold the tokens. Prices can move against that mix.
  • Inventory. You will be sold the winner and bought the laggard while in range. If you needed the winner, this is the wrong product.

Venue

  • Killed gauges / paused pools. New deposits can revert. Exiting an existing position is usually still possible; it can be one-way.
  • Oracle and tick risk. Width is set from observed vol and pool APR. A manipulated print can produce a wrong w* for a short window.
  • Aggregator failure. A swap that cannot meet min-out does not fill. Rebalance then waits. During that wait you may be out of range with inventory in the vault.

Operational

  • Operator liveness. If the bot is down, positions already in range keep earning; they will not be rebuilt after an exit until it returns. You can still kill and sweep without it.
  • Smart-contract risk. Vault, factory, DEX, and aggregator code can contain bugs. The allow-list shrinks where funds can go; it does not make those destinations riskless.
  • Signatures. Only sign TRUSS LP messages you started. Connecting the wallet is not a spend. The session signature is not a spend. A kill / deposit / swap transaction is a spend — read it.