Our risk framework analyzes an opportunity holistically and assigns a rating based on the risks identified. The final rating factors in risk prevalence, importance, and convex relationships.
Highest-rated pools with lowest risk of losing principal
Solid pools with low risk of losing principal
Speculative pools with moderate risk of losing principal
Highly speculative pools with large risk of losing principal
Lowest-rated pools with highest risk of losing principal
A risk rating is an informed opinion about a DeFi investment's relative risk. It provides a framework to help investors evaluate opportunities and is just one aspect of an investor’s decision-making process.
Our risk framework is based on data and independent research from our team of experts. Once a risk is identified, it is evaluated according to our rubric, assigned a risk score, then converted into a rating from A-F.
Sample risk factors
The Exponential DeFi Graph makes our framework scalable by mapping dependencies across assets, protocols, and chains to identify potential risks.
Assets in DeFi can be built on top of one another (“money legos”), creating compounding risk vectors.
Single points of failure can be present at the asset, protocol, or blockchain level.
Risk compounds when one vulnerability impacts an entire opportunity.
Why we need risk ratings
Risk ratings provide an industry standard for investors to use when evaluating DeFi yield opportunities.
Spot risks before it’s too late.
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Invest based on your risk tolerance
From risk averse to full degen, our risk ratings have you covered.
Identify market inefficiencies
Cut through the noise - information asymmetries, low liquidity, high transaction costs, human psychology - and discover the best risk-adjusted opportunities in DeFi.