Risk Disclosure

1. General Investment Risks

Investing in cryptocurrency and decentralized finance protocols carries inherent risks:

• Loss of Principal: You may lose some or all of your deposited funds.
• No Guaranteed Returns: Target yields (10-15% APY) are estimates based on historical performance and market conditions. Actual returns may be significantly lower or negative.
• Market Volatility: Cryptocurrency markets are highly volatile and can experience rapid price changes.

2. Smart Contract Risks

Memento operates through smart contracts on the Solana blockchain:

• Code Vulnerabilities: Despite audits, smart contracts may contain bugs or vulnerabilities that could be exploited.
• Immutability: Once deployed, smart contract code cannot be easily changed, which may limit our ability to fix issues.
• Oracle Risks: The Protocol may rely on external data feeds (oracles) that could malfunction or be manipulated.

3. Strategy-Specific Risks

Dividend Delta-Neutral Strategy

• Hedging may not perfectly offset price movements
• Dividend payments from underlying assets are not guaranteed
• Counterparty risk with hedging instruments

Funding Rate Arbitrage

• Funding rates can turn negative, resulting in losses
• Exchange counterparty risk
• Liquidation risk in leveraged positions
• Basis risk between spot and perpetual prices

REITs / Real Estate Strategy

• Real estate market downturns
• Regulatory risks in real-world asset tokenization
• Liquidity constraints

Stablecoins / DeFi Lending Strategy

• Smart contract vulnerabilities in underlying protocols (Aave, Jupiter, etc.)
• Variable interest rates that can decrease significantly
• Stablecoin depeg risk (USDC, DAI, etc.)
• Protocol governance risks and potential changes
• Cross-chain bridge risks when deploying across multiple networks

4. Liquidity Risks

• Withdrawal Delays: Large withdrawals may take time to process depending on strategy liquidity.
• Capacity Limits: Vaults have capacity limits; you may not be able to deposit during high demand periods.
• Market Liquidity: During market stress, underlying assets may become illiquid.

5. Regulatory Risks

• Cryptocurrency regulations are evolving and uncertain
• The Protocol or its strategies may become illegal in certain jurisdictions
• Regulatory actions could impact the value of assets or restrict access to the Protocol

6. Technology Risks

• Blockchain Risks: Solana network congestion, outages, or security issues
• Wallet Security: Loss of private keys means permanent loss of funds
• Frontend Attacks: Phishing or DNS attacks could redirect users to malicious sites

7. No Insurance

Deposits in Memento are NOT insured by any government agency or private insurance. There is no guarantee of recovery in case of losses due to hacks, exploits, or market conditions.

8. Do Your Own Research

Before using Memento, you should:

• Understand how DeFi protocols work
• Research the specific strategies used by the Protocol
• Consult with financial and legal professionals
• Only invest funds you can afford to lose entirely

9. Acknowledgment

By using Memento, you acknowledge that you have read and understood this Risk Disclosure, and you accept full responsibility for any losses incurred. You confirm that you are not relying on any statements or representations made by Memento or its contributors as investment advice.

10. Contact

For questions about risks, please reach out via our official Twitter account @mementodotmoney.