Third-Party Risks

Points Risk

Lov-Strategy vaults may include third-party protocol points (such as Ethena Season 2 Sats) in its APR calculations, based on publicly available data. While Origami Finance makes a commitment to forwarding all points to vault depositors (and ensuring this is technically feasible before creating the vault), it has no control over the distribution process, redemption process, policy setting or any other decisions made by third-party protocols regarding their respective points campaigns. If a third-party protocol makes any decision surrounding points campaigns that leads to incompatibility with lov-Strategy vaults after the launch of such vaults, this could have a material impact on the APR calculation, and with it, the expected returns of the vault. This may also mean users do not receive any points at all.

Liquidity Risk

Lov-Strategy vaults typically borrow from an external source of liquidity such as Morpho Finance or Spark Finance. The Interest Rate and the Loan-to-Value (LTV) limits will vary depending on the lending pair being utilised and the current utilisation ratio (UR) on each platform. Origami Protocol does not control those parameters and must adhere to them like any other platform user.

In some cases, the external liquidity pool may become deprecated or otherwise illiquid. In such an event, the affected lov-Strategy vault will go into Shutdown mode which will only allow users to exit their holdings and prohibits new deposits.