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Crossbow removes some classic DeFi risks by construction — pooled counterparties, hidden fee drag, exit permission — and cannot remove others. This section is the honest inventory. Read it before depositing; size positions as if the bad cases will eventually happen, because across enough time some of them will.

Price exposure (delta)

You hold volatile assets. They can go down. Nothing about active management changes that.

Rebalancing cost (gamma)

Concentrated liquidity structurally sells winners and buys losers. Yield must outrun that drag.

Depegs and stables

“Stable” pairs are calm until they very much aren’t.

Smart contract risk

Vaults, venues, tokens — all code, all capable of failure.

Venues and emissions

Yield depends on venues that can fade, and reward tokens that usually depreciate.

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The one-paragraph version

Your deposit is converted into volatile on-chain positions. The dominant risk is simply the market: the assets your strategy holds can fall, and no agent can harvest fast enough to offset a crash. Behind that sit structural costs (rebalancing drag), tail events (depegs, venue failures, contract bugs), and the dependency of yield itself on emission programs that decay. The agent manages these risks; it does not eliminate them.
Deposit only what you can afford to see drawn down. Nothing on these pages — or anywhere in Crossbow — is investment advice.