Risk disclosure

Not financial advice. AutoLayer provides an interface and information. It does not give investment, legal or tax advice. Only use funds you can afford to lose.

Smart contract risk

AutoLayer and the protocols it connects to run on smart contracts. Code can contain bugs or be exploited, even after an audit. An audit reduces risk; it does not remove it. A flaw in any contract in the path of your transaction can lead to permanent loss.

Restaking and slashing risk

Restaking on EigenLayer lets staked assets secure additional services, known as Actively Validated Services (AVS). Each AVS can define conditions under which a share of restaked assets is slashed, meaning confiscated. Operator mistakes, AVS bugs or misconfigured rules can trigger slashing. Withdrawals from restaking protocols can also be delayed.

LRT depeg and liquidation cascade

Liquid restaking tokens (LRTs) can trade below the value of their underlying assets, known as a depeg. LRTs can also be used as collateral in lending markets, including looped positions. A sudden depeg can trigger automatic liquidations, and a cascade of them can leave bad debt in those markets. The more an LRT is rehypothecated, the larger this risk.

Oracle risk

Protocols rely on price and data feeds. Stale, manipulated or faulty feeds can cause wrong prices, unfair liquidations or failed transactions.

Bridge and Layer 2 risk

AutoLayer is deployed on Arbitrum, a Layer 2 network. Layer 2 networks depend on sequencers, bridges and their parent chain. Outages, upgrades, bridge failures or sequencer problems can delay or block transactions and withdrawals. Assets moved across bridges carry the bridge's own risks.

Third-party and routing risk

Routes may pass through exchanges and protocols we do not control. Liquidity can disappear, slippage can exceed your expectation, and gas costs can change between quote and confirmation.

Regulatory risk

Rules for crypto-assets and DeFi are changing, including in the EU. New laws or enforcement could restrict access to AutoLayer, to the assets involved or to the protocols it uses. You are responsible for your own legal and tax obligations.

Tokens and points

AutoLayer's roadmap describes a points system that is intended to be converted into tokens in a future distribution. Points are not tokens, carry no promise of conversion, value or timing, and the plan may change or be cancelled. Do not make decisions in the expectation of a token or airdrop.

Operational risk

Wallets can be phished or drained, private keys can be lost, and transactions cannot be reversed. Verify addresses and the site URL, and keep your keys private.