risk.warning
⚠️ risk.critical
risk.criticalBody
You may lose all funds deposited into a Vault. DeFi strategies are experimental and operate in volatile, adversarial market conditions. No amount of simulation or backtesting guarantees profitability on mainnet. Flash loans that fail revert, but gas fees are still consumed. Smart contract exploits, oracle manipulation, and liquidity crises can cause permanent, unrecoverable loss.
The SuiLoop smart contracts (atomic_engine.move) have been developed with formal verification via Move Prover and follow security best practices (Hot Potato Pattern, capability-based access control). However, NO smart contract can be guaranteed to be free from bugs. An exploit in the contract code or in a dependency (Scallop, Cetus, Navi, DeepBook) could result in total loss of funds locked in Vaults.
Flash loan arbitrage strategies depend on the existence of price inefficiencies between DeFi pools. Market conditions change rapidly. During periods of high volatility, low liquidity, or market stress (e.g., a token depeg event), strategy execution may fail repeatedly, consuming gas fees without generating profit. Strategies that were profitable in simulation may be consistently unprofitable on mainnet due to MEV bots, front-running, or spread compression.
All on-chain operations require SUI for gas fees. Network congestion on Sui can increase gas prices unpredictably. Failed transactions (due to insufficient profit, slippage exceeding minimums, or other on-chain errors) still consume gas. Over many failed attempts, cumulative gas costs may exceed any profits generated. Ensure you maintain sufficient SUI in your wallet for ongoing gas coverage.
The legal status of DeFi software varies by jurisdiction and is subject to rapid change. In Mexico, the LFPIORPI (reformed July 16, 2025) may impose reporting obligations on certain operators of virtual asset infrastructure. Users are solely responsible for ensuring their use of SuiLoop complies with all applicable laws, including tax laws, AML/KYC regulations, and any local restrictions on DeFi activity. Failure to comply may result in fines, sanctions, or criminal liability. SuiLoop provides no legal advice.
SuiLoop integration with Pyth Network oracles for real-time price data. Oracle data may be stale, incorrect, or subject to manipulation attacks. Strategy decisions made based on incorrect oracle data may result in losses. External API data displayed in the dashboard (Scallop APY, Navi rates, market sentiment) is obtained from third-party sources and may be delayed, inaccurate, or become unavailable.