Risks & Safety

Ensemble Finance is built with safety and transparency at its core. While our architecture avoids many of the systemic risks common in DeFi, users should still understand the risks involved when deploying smart contract strategies.

⚠️ Market Risk

Ensemble strategies in crypto markets involve risks such as sudden price changes, increased volatility, and unexpected macro events. These factors, especially when using high leverage, can result in significant losses.

📉 Leverage Risk

Using leverage amplifies both gains and losses. Ensemble allows up to 20x leverage for certain strategies. We recommend:

• Start with lower leverage (1x–3x)

• Monitor positions frequently

• Understand liquidation thresholds

🔐 Smart Contract Risk

Each strategy operates through a dedicated smart contract. Although professionally audited and isolated, no smart contract system can be guaranteed against bugs or exploits.

🏦 Custodial Risk: None

Ensemble operates in a fully non-custodial manner. Funds are never deposited into shared vaults or centralized pools. Instead, your strategy contract exclusively manages assets under your control.

📋 Audits & Reviews

• Ensemble smart contracts audited by Spearmint

• Continuous review of rebalance, leverage, and permission modules

• Additional audits planned before governance rollout

🧠 User Responsibility

While Ensemble provides the tools, it is up to each user to:

• Choose risk-appropriate settings

• Monitor strategies regularly

• Avoid using capital they cannot afford to risk

• Understand how leverage and rebalancing affect outcomes

✅ Mitigation by Design

• No pooled vaults: Prevents contagion.

• Per-user contracts: Mitigates cross-strategy risk.

• Hyperliquid EVM: Eliminates gas and bridge risks.

• Transparent execution: Ensures traceable performance.

📌 Stay Smart, Stay Structured

Harness the power of Ensemble responsibly. Master your strategy, grasp your leverage, and utilize tools to manage risk efficiently.