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What are the Risks of Depositing on Superform?
What are the Risks of Depositing on Superform?
Updated over a week ago

There are several risk factors that you should be aware of when depositing on Superform.

Price & Strategy Risk

When you deposit into a vault, you are exposed to the underlying asset of the vault. If this asset is volatile (ex. ETH), then you will be exposed to the risk of the asset decreasing in value.
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Vaults listed on Superform engage in a variety of functions to earn yield. These activities each come with their own risks. For example, a lending market may accrue bad debt if liquidations are not processed efficiently, or a strategy that invests in an AMM pool may accrue impermanent loss. Each vault is different and it's imperative that you do your own research prior to interacting with a vault.

Smart Contract Risk

Vault/Protocol

Each vault is its own smart contract and is at risk of being hacked or otherwise exploited. In the event of a hack, your SuperPositions may become worthless as the underlying assets are drained from the vault. Even if a vault is not hacked, it still may suffer from broken or malicious implementations, meaning your funds can become stuck or lost. Always do your own research on vaults and protocols before interacting with them. Protocol Pages and Vault Pages each have an "Audits" tab that can be used to view audits conducted on the underlying code. This information is 100% maintained by protocols and the integrity and accuracy is not guaranteed in any way by Superform Labs.

Bridge Risk

While tokens are in transit for crosschain interactions, those tokens are subject to bridge risk of the token bridge being used. Users can granularly select which bridges they'd like to use in the transaction settings.

Messaging Bridges

Superform uses LayerZero, Hyperlane, and Wormhole to send data across chains. Superform requires that data be sent by two distinct AMBs for each message sent through Superform, and if the data of the messages doesn't match, the message is considered invalid. Assuming Superform contracts perform as designed, it would require the simultaneous compromise of two of these messaging bridges in order for any risk to be posed to Superform. This is much more secure than most other apps that rely on a single messaging bridge.

Superform Risk

When you use the Superform Protocol to access vaults, you are taking on smart contract risk of the Superform Protocol. The Superform Protocol has undergone a rigorous security review process including two code competitions and two audits. There is an ongoing bug bounty to reward any white hack bug submissions.
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