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. Origami Finance will make its best technical effort to work with the Third-Party Protocol to ensure Points eligibility and to forward all eligible points to Origami vault depositors. However Origami Finance has no direct control over the distribution process, redemption process, policy setting, or any other decisions made by Third-Party protocols regarding their respective points campaigns. If the Third-Party Protocol makes any change regarding the respective 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 the expected points received may be slashed partially or completely.

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.