# Risk Disclosure ### Risks * Smart Contract Risk: Potential vulnerabilities may exist within Renzo’s smart contracts as well as the underlying protocols integrated in the yield layer. * Liquidation Risk: Using leverage increases the chance of liquidation; however, the products include built-in mechanisms designed to reduce this risk. ### Risk Mitigation #### Smart Contract Audits Renzo completed the smart contract audits for the USCC Vault - by Halborn as seen in the reports here: * Superstate vault audit report - * EVM managed vaults - #### Liquidation Risk Mitigation De-leveraging on Lending Markets will take this flow on volatile conditions: * If the vault has a current borrow amount and the yield on USCC drops or the borrow rate spikes and the vault manager deems it unprofitable, the vault will de-lever the loan * If required, the vault can withdraw USCC collateral from Aave Horizon * USCC is redeemed from Superstate for USDC * The USDC is used to pay off the loan * The de-leverage loop flow can be executed multiple times if necessary * If no active loan is left, any leftover USCC collateral will be withdrawn from Aave Horizon back into the vault ### User Responsibility You ( "users" or "depositors") are solely responsible for evaluating and assuming all risks associated with participating in a Vault, including: * Smart-contract vulnerabilities or exploits. * Counter-party, liquidity, or slashing risks from integrated protocols. * Market volatility impacting asset values or yields. ### Operational delays or withdrawal pauses implemented for risk management. You should perform independent research, review the latest documentation, and only deposit assets you can afford to lose. You are also responsible for any tax, legal, or regulatory obligations related to your participation. ### No Warranties and Limitation of Liability Vaults and related interfaces are provided “as is” and “as available.” Renzo and its affiliates make no representations or warranties of any kind, express or implied, including merchantability, fitness for a particular purpose, or non-infringement. To the fullest extent permitted by law, Renzo, its affiliates, contributors, and service providers are not liable for any losses, including loss of funds, profits, data, or goodwill, arising from participation in a Vault or reliance on information provided about a Vault. ### Updates and Modifications Vault configurations, supported assets, and connected protocols may change at any time without prior notice. Users are encouraged to review the most recent version of these Disclosures and the relevant Vault documentation before depositing. ### Acknowledgment By interacting with a Managed Vault, you confirm that you have read and understood these Vault Risk Disclosures and the Terms of Service, and that you accept full responsibility for any risks associated with participation. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.renzoprotocol.com/docs/products/reserve-vaults/risk-disclosure.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.