Affine Documentation

Understanding Risk

None of the following are meant to be investment advice. The risk measures here are meant to provide illustrative and directional estimates of possible risk. Ultimately, you are responsible for conduc

Risk Levels

Safer: Generally, the maximum drawdown seen for the underlying strategies is less than 10%.
Steady: Maximum drawdown can be expected to be up to 10%. Smart contract mechanisms will cap the losses at no more than 10%
Riskier: A maximum drawdown of over 10% is not uncommon.
General Risks: All cryptoassets come with some form of risk, namely smart contract risk. In addition, other general forms of risk may impact some or all baskets created on the Alpine protocol including de-pegging risk and impermanent loss. De-pegging typically refers to when a crypto asset that aims to maintain a fixed ratio to a given asset -- say 1:1 with the US Dollar -- loses that peg. Tokens that aim to maintain these pegs are often called stablecoins and there have been instances where these de-pegging events have resulted in extremely large loses.