Risks

Prior to making any investment decision, each investor must undertake its own independent examination and investigation, including the merits and risks involved in an investment, and must base its investment decision – including a determination whether involvement would be a suitable investment for the investor – on such examination and investigation and must not rely on any information contained in this website in making such investment decision. Prospective investors must not construe the contents of this Website as legal, tax, investment, or other advice. Each prospective investor is urged to consult with its own advisors with respect to legal, tax, regulatory, financial, accounting and similar consequences of investing, the suitability of the investment for such investor and other relevant matters concerning an investment. This Website contains an overview summary. The summary set forth in this Website does not purport to be complete. Do not place undue reliance on this Website. At Avant, we prioritize risk management to maintain the stability and security of our platform. Here’s an overview of the potential risks and the measures we take to mitigate them:

Centralisation Risks

Centralization in any decentralized system can lead to points of failure and potential manipulation. At Avant, we mitigate these risks by ensuring that operational control and critical decision-making processes are distributed across multiple parties.

Smart Contract Risks

Avant's smart contracts are designed with low complexity to minimize risks. They undergo thorough audits and continuous monitoring to ensure security. We also rigorously vet and diversify the smart contracts of protocols into which we deploy assets (such as ggAVAX, GMX, etc.), enhancing the safety of your investments.

Trading and Key Person Risks

The potential for trading losses and key person risks are addressed by employing a redundant team of traders and utilizing robust custodial services. This setup ensures that trading operations can continue smoothly even in the absence of key individuals.

Market Conditions and Profitability

Our market-neutral strategy is adaptable to changing market conditions. If the basis trade temporarily becomes unprofitable, for instance during a bear market, we adjust our strategies accordingly to minimize impact. This adaptability helps in maintaining a stable yield generation over time.

Scalability of Trading Strategies

To address concerns about the scalability of our trading strategies, we plan to include additional assets such as BTC.B and ETH LSTs/LRTs. This expansion will be executed in a manner that remains native to the Avalanche ecosystem and may extend to non-Avalanche perps DEXs if necessary.

Liquidity Risks

In scenarios where large volumes of avUSD are converted to USDC, there may be delays in processing withdrawals. While we aim to fulfill most withdrawal requests within a week, exceptionally large requests may require additional time to ensure that all transactions are handled securely and efficiently.