Risks & Disclaimer

Important considerations

Smart contract risk

SLI operates entirely through onchain smart contracts.

As with any smart contract–based system, vulnerabilities, bugs, or unexpected interactions may occur. While the logic is deterministic and publicly verifiable, no smart contract system can be considered entirely risk-free.

Users interact with SLI at their own discretion and assume the technical risks associated with onchain execution.


Liquid staked SOL (LST) risks

The underlying assets used by the SLI mechanism are liquid staked SOL tokens.

These assets are subject to risks specific to their respective protocols, including but not limited to:

  • staking-related risks,

  • validator performance or penalties,

  • protocol design or implementation issues,

  • and changes in token behavior over time.

Issues affecting any underlying LST may impact the behavior of the SLI mechanism indirectly.


Market and price volatility

SLI is a freely traded token whose price is determined by market supply and demand.

The token may experience significant price volatility, including sharp upward or downward movements, over short or extended periods. There is no mechanism designed to stabilize the price or limit volatility.

Past behavior of underlying assets or market conditions does not imply future outcomes.


Liquidity risk

Liquidity conditions for SLI may vary over time.

Changes in market participation, trading volume, or external conditions may affect the ability to buy or sell SLI at desired prices. Periods of low liquidity may amplify price movements or increase slippage.


No guarantees

SLI does not provide guarantees of outcomes, performance, or behavior.

The protocol follows predefined rules, but the results of those rules depend on external market conditions, user activity, and asset price movements.

Participants should not assume any specific result from interacting with SLI.


Disclaimer

The information provided in this documentation is for educational and informational purposes only.

Nothing in this documentation constitutes financial, investment, legal, or tax advice. Users are solely responsible for evaluating the risks associated with interacting with SLI and for complying with applicable laws and regulations in their jurisdiction.

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