# Risk Disclosure

It is important to understand the risk involved in interacting with the Chest protocol. While Chest is a decentralized network that composes complex strategies, it is the staker's responsibility to fully understand the risks involved in said strategies, in the underlying blockchain, and smart contract risks.

There are 3 primary risks:

1. 1\.

   **Smart contract risk** involves any risk associated to the program code. The current program is in active development and is an alpha build. Code is unaudited, meaning it can be prone to errors, bugs, and worse of all, exploits. Stakers are cautioned to use at their own risk.
2. 2\.

   **Strategy risk** involves risk associated to each chest's underlying strategies. Because yield is not free, APY earned always comes with risk. While strategies are selected as to earn yield the majority of the times, there can always be a number of events related to chest-specific strategies (ex: options going in-the-money) that lead to decreased yield and or even losses. Stakers are cautioned to fully understand the underlying Chest strategy and its risks before staking.
3. 3\.

   **Ethereum and blockchain related risks** include network downtime and network failure. This is the most severe risk, that can lead to funds and transactions being slowed down/ halted for a period of time. Stakers are cautioned to understand how blockchains work, how Ethereum works, and how smart contracts interact with the chain.

Do not deposit more than you are willing to lose.


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