Risks

Below are some of the risks you must be aware of before investing in Cruize Finance vaults.

Credit Risk

Market makers taking the other side of the trades carry credit risk and could potentially default in the case of extreme events. This means that both the principal and yield invested could be lost in the event of market makers defaulting. Cruize works with intermediaries to interface with market makers who are accredited with a history of creditworthiness in order to minimize the risk of default.

Counterparty Risk

In the situation that the options expire in-the-money, counterparties of options on the short side may be unable to fulfill their obligations to the vault.

Smart Contract Risk

The Cruize Finance smart contracts are experimental and users are advised to exercise caution and only risk funds they can afford to lose.

Network Risk

You are aware of and accept the network risks. We are not responsible for any losses due to any technical issue arising from the Ethereum blockchain, ancillary features, plugins, or wallets, including but not limited to late reports by developers or representatives (or no report at all) of any issues with the Ethereum blockchain, including forks, technical node issues, or any other issues resulting on a loss of funds.

Deposit Risks

You are aware of and accept that the assets held in the Vault on your behalf are not subject to deposit insurance protection, investor insurance protection, or any other relevant protection in any jurisdiction.