Core

Risk curation

Each Morpho Vault can be curated to reflect a different risk profile based on the goal and value proposition of the vault.

For example, a Morpho Vault dedicated to lending against Liquid Staking Tokens (LSTs) collateral(s) on Morpho would expose its users to a specific curated set of LSTs collateral assets. A user depositing this vault would not be exposed to any other collateral asset.

This differs from traditional lending platforms that do not offer the same flexibility. Users only have one choice: to be exposed to every asset listed in the pool. Risk curation offer users the ability to select a vault that aligns with their desired balance between risk and return and that reflects their individual risk appetite.

Timelock

Timelocks preserve the noncustodial property of Morpho Vaults, ensuring users maintain control of the assets at any time and can withdraw them if they want to.

A timelock is a mechanism that introduces a delay or waiting period before certain functions or actions can be executed. This adds a layer of security, giving users of a Morpho Vault time to review and react to proposed changes.

Starting from Morpho Vaults v1.1, at the initial setup of a vault, the timelock can be set to 0 to allow the curator to configure the vault. Once the configuration is complete, the curator can adjust the timelock within the bounds of 1 day to 2 weeks (expressed in seconds). This timelock applies to subsequent updates that may significantly impact the vault's risk profile, such as enabling high LLTV markets or increasing supply caps. This mechanism ensures users have sufficient time to exit their positions if they disagree with proposed risk changes.

To inspect the timelock value, one can jump into the "Read Contract" section of any Morpho Vault, for instance here.