Risks and mitigation

Shark Fins

Cega vault strategies are sophisticated investment products that carry risks and are not suitable for investors who do not comprehend the product or are risk averse.

Credit Risk

If a market maker (MM) defaults, they may not pay depositors some or all of the owed yield and owed capital partially borrowed from user deposits. Cega will only trade Shark positions with market makers that have verified balance sheets and acute risk management/diversification. Cega is also a leader in risk management practices including signing ISDA legal agreements with MMs, choosing accredited MMs who pass KYC and who have a history of credit worthiness, and using Credora to actively monitor counterparty balance sheets.

Smart Contract Risk

There is smart contract risk associated with depositing funds on-chain. To ensure security, Cega enlisted top firms to audit its code and has an ongoing retainer for new features.

Shark Fin vault smart contract code was audited by Ottersec and top auditor from Coder4rena.

In general, Cega's Ethereum smart contract was double audited by Ottersec and Zellic. The Solana smart contract was audited by Ottersec and saw security consultation by Zellic during the development process.