Risks
Current risks to understand before using Moocon Vaults.
What "principal not at risk" means
Moocon Vaults does not use your deposit for trading or leverage. Your deposited principal is represented by pTokens and can be redeemed by burning those pTokens.
The yield generated by the vault is pooled into prizes. If you do not win a round, you keep your pTokens and can continue participating or withdraw.
What risks remain
Yield-source risk
Deposits flow into Jupiter Lend. Prize generation depends on the underlying lending market and its rate, liquidity, and protocol behavior.
Protocol risk
Moocon Vaults is smart-contract software. Bugs, configuration errors, or integration issues can affect the protocol.
Operator liveness
Rounds are driven by an off-chain operator that snapshots, commits, requests randomness, and reveals. The operator cannot pick the winner by itself, but it can delay round completion if it stops progressing the lifecycle.
Principal redemption is separate from winning a round, but round settlement depends on the operator completing the flow.
VRF and Ephemeral Rollup dependency
Randomness relies on MagicBlock VRF fulfillment and the MagicBlock Ephemeral Rollup flow used during the drawing lifecycle. If those systems are unavailable, a round can be delayed.
Snapshot timing
Eligibility is fixed at the round snapshot. Deposits made after a snapshot are not eligible for that round and become eligible in a later round.