℞PERCVAULT
Important

Risk Disclosures

PERCVAULT offers leveraged exposure to SOL and carries significant risks. Read this before you pour up. No cap.

High Risk
You could lose all or a substantial portion of your investment. At 2x leverage, a 50% drop in SOL could wipe out your entire position. Only invest what you can afford to lose.

Protocol Status

Security and operational maturity can change quickly in DeFi.

  • Audit: Not publicly audited yet / audit in progress (verify before depositing)
  • Risk engine: Percolator-style accounting + solvency constraints (does not eliminate market risk)
  • Oracles: Pyth (with staleness/confidence checks)
  • Leverage: 2x live now. Higher tiers planned — each with separate risk parameters

If you are unsure what any of the above means, do not participate.

Leverage Risk

Higher leverage tiers amplify both gains and losses proportionally

Amplified losses: When SOL declines, leveraged tokens decline at a multiple of that rate. At 2x, a 10% drop means ~20% loss.

Tier~Liquidation moveRisk Level
2x-50% SOLLower
3x-33% SOLComing Soon
5x-20% SOLComing Soon
10x-10% SOLComing Soon

Volatile leverage: The actual leverage ratio fluctuates with market movements. During rapid price changes, leverage can temporarily exceed target ranges.

Compounding effect: Daily rebalancing means losses compound over time. Even if SOL returns to its original price, leveraged tokens may not recover fully.

Smart Contract & Technology Risks

  • Smart contract bugs: Code vulnerabilities could result in partial or total loss
  • Oracle failures: Price feed issues could trigger incorrect rebalances
  • Network congestion: Solana network issues may prevent timely rebalancing
  • Liquidation risk: Extreme market moves could force emergency liquidations
  • Counterparty risk: Exposure to lending protocols and derivative platforms

Market & Liquidity Risks

  • Low liquidity: During market stress, you may not be able to cash out shares immediately
  • Price gaps: Large price movements between rebalances can cause tracking errors
  • Funding costs: Borrowing costs for leverage can vary significantly with market conditions
  • Slippage: Large trades may move markets unfavorably during rebalancing
  • Market closure: Extreme conditions could halt all trading activities

Fees & Costs

Management fees: Annual fees reduce NAV over time, currently around 2% APR.

Borrowing costs: Interest on leveraged positions varies with market rates.

Trading fees: Rebalancing incurs DEX fees and potential slippage costs.

Performance drag: All fees compound and can significantly impact returns over time.

Regulatory & Legal Risks

  • Regulatory uncertainty: Future regulations could restrict or prohibit operations
  • Tax implications: Complex tax treatment; consult a tax professional
  • No guarantees: No FDIC insurance or regulatory protections
  • Experimental technology: DeFi protocols are new and largely untested at scale
Not Financial Advice
This information is for educational purposes only and does not constitute investment advice. Consult qualified professionals before making investment decisions. DYOR.

Summary of Key Risks

  • At 2x leverage, a 50% SOL drop could wipe out your entire position
  • You may lose 50% or more of your investment in a single day
  • Losses compound over time even if SOL price recovers
  • Smart contract bugs could result in total loss
  • Market conditions may prevent timely redemptions
  • Fees continuously reduce your investment value
  • No regulatory protections or guarantees