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Risk Documentation

By using Morpho Vaults (formerly known as MetaMorpho), you assume the risks associated.

The following section aims to provide you with an overview of various types of risks that should be considered when engaging with Morpho Vaults.

This overview is not exhaustive and may not cover all potential risks to which you might be exposed.

Morpho is committed to use industry-leading security practices. Yet, there are still a number of risks associated with the use of Morpho Vaults that users must be aware of.

Morpho risks​

Morpho Vaults are built on Morpho (formerly known as Morpho Blue). Therefore, using Morpho Vaults comes with the risks associated with using Morpho. Find more info on them in the dedicated section.

Smart Contracts risks​

There is an inherent risk that the Morpho Vaults smart contracts could contain a vulnerability or bug. Several security measures are employed to mitigate this risk:

More details about Morpho Vaults’ security and security reviews can be found in the dedicated section.

Vaults risks​

Key roles within a Morpho Vault wield significant power, impacting user interests:

  • The Owner has the ability to set performance fees, appoint curators and allocators, and adjust various other settings. Morpho Vaults impose a timelock on actions that may affect users' interests.
  • The Curator can enable/disable markets. A timelock allows users to react to changes initiated by the curator.
  • The Allocators determine markets supply/withdrawal order, influencing returns and liquidity for suppliers.
  • The Guardian has the ability to revoke timelocked actions, providing an additional layer of protection for users.

When investing in a Morpho Vault, it is important to conduct thorough due diligence on the vault's settings and its allocation strategy, as well as to stay up to date with its changes.