Risks
Every trading strategy carries the inherent risk of loss, including loss of funds. Deploy Finance's design mitigates and controls several risk categories.
Market neutral and self-custodial do not mean risk free.
The agents have different custody models and different risk profiles. They should not be described as sharing the same risks.
What Deploy Finance removes
- Centralized exchange custody. Assets stay in your wallet, removing exchange insolvency and withdrawal-freeze exposure.
- Vaults. Funds are held by your wallet, not pooled in a contract, removing rug-pull and honeypot exposure on the deposit path.
- Agent withdrawal. Session keys are scoped to trading and revocable only by you.
Platform risks
These apply to both live agents, and they are the risks of using any onchain platform.
Agent execution. An autonomous agent may execute incorrectly, fail to react as intended, or suffer an operational failure resulting in losses. The system is distributed and has run through every major market event since 2018, but a system-wide failure would leave agents unresponsive for a window.
Exchange and blockchain. Downtime, congestion, exploits, or protocol failures may prevent positions from being opened, managed, or exited as intended.
Smart contract. Vulnerabilities in protocols an agent uses can cause losses even though your wallet remains self-custodial. To hepl mitigate this, agents can only interact with a whitelisted protocol set (for now only Hyperliquid).
Liquidity and execution. Market stress widens spreads and slippage and makes it harder to enter, rebalance, or exit at expected prices. To help mitigate this, agents trade large-cap assets with deep liquidity and analyze markets for liquidity before positioning.
Wallet and key management. You remain responsible for access to your wallet. Session-key or credential compromise, user error, or wallet infrastructure failures can affect access or strategy operation. To help mitigate this private keys are never stored whole. Each is split into three encrypted shares and reconstructed only briefly inside a trusted execution environment. Session keys are scoped to trading and revocable at any time.
Third-party infrastructure. Service disruption or a security failure at a wallet or venue provider can affect agent operation. To help mitigate this wallet infrastructure is provided by Privy, and your keys remain exportable, so you keep a path to your funds independent of any provider.
Market manipulation. Malicious actors may attempt to manipulate prices on the exchanges where agents trade. To help mitigate this, agents trade deep, and only large-cap markets, where manipulation is materially harder and more expensive to attempt.
Regulatory. Changes to laws covering crypto assets, derivatives, autonomous trading, or the protocols an agent uses may affect a strategy's availability or operation.
Security
- Agent wallets. Non-custodial, with key sharding and revocable session keys.