Risk disclosure

​

Scope of this document

A Thaler vault is structured to remove as much risk as the protocol can. The Squads policy, the worker, the agent wallet, and the protocol reserve work together to keep the deposit and the yield floor inside well-defined bounds. The vault also interacts with third-party protocols on Solana that are independent of Thaler. These protocols have their own audit trails, governance, and risk profiles. The following risks remain and are not covered by principal protection or the yield floor.

​

Risk inventory

​

Smart-contract risk in detail

The vault routes capital through several external programs: Each program is audited and has been live for an extended period. None is perfect. If one is exploited and user funds are lost in the venue itself, the loss flows through to the vaults holding positions in it at the time. The protocol’s reserve is not sized to absorb a full venue failure. The protocol mitigates this risk by:

• Routing only through venues with multi-year live history and public audit reports.
• Capping the maximum exposure to any single venue inside the policy.
• Diversifying across at least two venues per strategy leg where the venue list supports it.

​

What Thaler covers

The covers are documented in Principal protection and Yield floor.

​

What Thaler does not cover

• Smart-contract failure of a third-party protocol.
• Oracle manipulation or stale-price liquidations.
• Solana network outages that prevent timely settlement.
• Loss of user keys.
• Regulatory restrictions on the user’s jurisdiction.

The user accepts these residual risks as part of the Terms and Policy Agreement signed at creation. The agreement is reproduced in the Create Vault flow and must be scrolled to the bottom and ticked before signing.

​

Next read