Risks & Risk Framework
Last Revised on Aug 16, 2025
OmniYield is an innovative system that combines multiple DeFi protocols and assets, aiming to provide users with a one-stop staking experience with optimized risk-adjusted staking yields. It also offers a better yield-bearing asset option for developers. However, despite our best efforts, there are inherent risks associated with OmniYield, including vulnerabilities related to smart contracts, market dynamics, and third-party assets and protocols. These vulnerabilities may be exploited and pose potential risks to OmniYield users.
We believe it is essential to summarize the potential risks that users may encounter when using OmniYield. We also encourage you to explore additional potential risk factors and make decisions on whether and how to use OmniYield based on your own assessment and risk tolerance.
The list of risks outlined below is not exhaustive, as specific risk factors can change over time with evolving market conditions and industry developments. Therefore, we will periodically update this risk summary. Using an OmniYield product indicates that you have read and accept all risks associated with the OmniYield product, including but not limited to those described herein.
SMART CONTRACT RISKS
Smart contract risk is one of the primary threats faced by DeFi, and while OmniYield's contracts undergo audits by well-respected and professional auditors, it's crucial to acknowledge that no contract can ever be completely risk-free. Despite our best intentions to prioritize user safety and multiple rounds of testing before release, there may still be potential vulnerabilities or logic errors that could be exploited, resulting in the loss of user funds.
To keep pace with the rapid changes in the market and technology and to ensure the security of user assets and the competitiveness of our product, the OmniYield team may make adjustments to certain parameters and settings within the contract or update the code. By using OmniYield, you agree to assume these risks and accept any changes the team may implement in the contract.
OmniYield has plans to introduce additional audits in the future and undergo further institutional-level scrutiny to minimize this risk as much as possible. We also strongly recommend that you gain a comprehensive understanding of the various risks associated with smart contracts.
DEFI COMPOSABILITY RISKS (THIRD-PARTY PROTOCOLS AND PLATFORMS)
The ability to combine multiple protocols, like building with LEGO blocks, to provide users with higher yields and a more convenient experience is one of the charms of DeFi. OmniYield, based on various reputable protocols, aims to offer users more competitive yields. However, stacking multiple DeFi protocols also increases the complexity of the code and system, leading to greater risks. Additionally, connecting to multiple protocols can expose OmniYield to market risks, DAO governance risks, mechanism risks, oracle risks, and other potential issues that may affect the OmniYield protocol. Any problems with the protocols that OmniYield relies on could potentially result in losses for OmniYield users.
While OmniYield supports only well-established, battle-tested protocols that have managed substantial assets and performed well during crises, it is impossible to guarantee that all the protocols integrated into OmniYield will always function as intended.
In the future, OmniYield may become compatible with additional blue-chip DeFi protocols. The addition of any new protocols will be proposed on-chain, publicly disclosed during a time lock period, and subject to open voting by veOY holders before implementation. All proposals will be announced, and we encourage you to set reminders to independently monitor the operation of OmniYield and exercise your rights as a veOY holder in a decentralized manner.
INTEGRATED DAPP RISKS
OmniYield deposits ultimately sit with integrated dApps. If any of these dApps were to be hacked or compromised, there could be a loss of user funds.
OmniYield monitors and attempts to safeguard against possible compromises on all the dApps we integrate. However, there is no guarantee OmniYield will be able to save or recover user funds if an exploit were to occur on an integrated dApp. All the dApps we integrate are open source, audited, and backed by reputable teams and investors.
CROSS-CHAIN RISKS
OmniYield is an omni-chain protocol that leverages LayerZero to seamlessly transmit asset and price information across various L2 (Layer 2) and sidechains. During the process of cross-chain transmission of asset and price information, users may encounter corresponding risks. It's important to note that different chains operate with distinct mechanisms and structures, resulting in varying levels of risk associated with each chain.
REGULATORY RISKS
Cryptocurrency and DeFi remain at the forefront of technological innovation, and regulatory developments in this field are continually evolving. In extreme circumstances, it is possible that users may be unable to access OmniYield's products through the website frontend. However, users will still have the option to withdraw their funds by interacting directly with the smart contracts. This decentralized approach ensures that users can maintain control over their assets, even in challenging regulatory environments or unforeseen circumstances that may impact frontend access.
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