Risks
- Redemption fees. Users will be asked to pay a certain amount of fee in order to get their initial NFT(s) back.
- Smart contract risks. Though we try our very best to eliminate smart contract risks, it is still possible for some unrecognised bugs that could cause some technical issues.
- Volatility of the gas fee. Gas fee is changing all the time, and so some users might find certain times of the day are better than others for swapping. Please do not take this as financial advice.
- Ethical concern. The nft that you will get through swapping could be a stolen nft that hackers put into the vault/market.
- Impermanent loss. Liquidity stakers will need to deposit an amount of $FUSD equal to the value of the NFTs they are staking. Keep in mind that the quantity of NFTs and $FUSD that they will receive after staking will fluctuate along with the price of the NFTs (in $FUSD). For instance, users can get more NFTs at the end of their staking terms, if the price of the NFT rises; and vice versa.
- Fractional amount of NFTs. Staking NFTs through Starvaults means to stake correlated vault tokens. So in that sense, users are likely to receive a fractional number of vault tokens, which cannot be converted to NFTs immediately. What users can do is either to sell these tokens on Blocto or wait until they have more vault tokens for redemption.
Last modified 1yr ago