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CHAPTER 10

Risks

Documentation draft · Current product model. Read the publication note ↗

Kima strategies interact with concentrated liquidity, market volatility and automated execution. Each strategy has a different exposure profile.

Risk

What it means for users

Impermanent loss / inventory effects

Concentrated liquidity can change the composition and value of the position as the market moves.

Inventory exposure

Dynamic Buy and Dynamic Sell intentionally accumulate or distribute one asset as price moves through the selected range.

Volatility

Fast price moves can cause rapid conversions, range exits, or unfavorable execution conditions.

Pool liquidity

Thin liquidity can reduce the amount of trading a position can absorb efficiently and can increase execution sensitivity.

Smart-contract risk

Vaults, strategy contracts and DEX integrations carry smart-contract risk.

Keeper downtime

If the keeper stops, the position stops being automatically managed until the user exits or automation resumes.

DEX / pool risk

Pool migrations, venue-specific behavior and unsupported features can affect strategy execution.

Strategy-specific risk

Dynamic Buy, Dynamic Sell and Auto Farm have different directional and inventory exposures.

Kima does not guarantee a particular return, execution price, or fee outcome. Actual results depend on market activity, pool conditions, the selected range, strategy configuration and execution conditions.

KIMA · BUY / SELL / FARM