Rubicon | Risks

Risk Disclaimer

The Rubicon protocol is experimental software, and interacting with it has certain risks, including but not limited to smart contract security risks, mechanism risks, and the risks associated with providing liquidity. Only deposit what you can afford to lose, you could lose some or all of your funds. We encourage you to do your own research and read the smart contracts before interacting with them.

Rubicon Pools is a novel liquidity mechanism. In practice, it is a series of smart contracts which enable passive liquidity providers (LPs) to deposit their assets into a liquidity pool, where assets in the pool are then used by active market makers (strategists) to provide liquidity on the Rubicon order books. Yield from market-making goes to LPs, while strategists earn a performance fee.

Importantly, there is no guarantee that providing liquidity to Rubicon Pools is profitable, and liquidity providers could lose some or all of their assets. Providing liquidity to Rubicon Pools carries with it general smart contract risk and liquidity management risk. We encourage users to inspect the Rubicon Pools smart contracts for themselves before providing liquidity. These contracts can be found here. By interacting with the Rubicon app and/or protocol, you accept and acknowledge our terms of use.

Our goal is for all aspects of the Rubicon protocol to be permissionless. While the protocol is still under active development our core team takes steps to ensure the security of our protocol and test the mechanism in production. One of these steps is keeping the strategist role permissioned; for now, our team acts as the only strategists. Our priority is the long-term health and security of the Rubicon protocol, and we plan to open this role to anyone in the near future.