# Risks & Disclosures ## Important Notice Paravel is a non-custodial protocol. Users retain control of their private keys at all times. By using the protocol, you acknowledge that you are interacting with autonomous on-chain systems that execute strategies under pre-defined constraints. Paravel is not available to residents of the United States, United Kingdom, European Union, Singapore, Canada, or any other restricted or sanctioned jurisdictions. *** ## Key Risks ### Smart Contract Risk Paravel relies on smart contracts to execute vault operations and enforce system constraints. While contracts have been independently audited, risk cannot be eliminated. Potential issues include: * Undiscovered vulnerabilities * Exploits in dependent protocols * Unexpected interactions between integrated systems *** ### Market, Liquidity, and Oracle Risk Vault performance depends on external market conditions, including: * Sudden changes in liquidity across DeFi protocols * Volatility-driven losses or liquidation events * Oracle price inaccuracies or delays * Protocol-specific failures in integrated platforms These factors may impact returns or result in losses. *** ### Autonomous Execution Risk Paravel uses AI-driven agents to allocate and manage capital within predefined constraints. Although agents operate under strict permissioning and bounded execution logic, risks include: * Suboptimal strategy selection during regime changes * Unexpected behavior in extreme market conditions * Correlated strategy underperformance across agents * Delays or inefficiencies in reallocation during high volatility *** ### Systemic and Composability Risk Paravel interacts with multiple external protocols. Risks include: * Cascading failures across integrated DeFi protocols * Dependency on third-party smart contracts * Network congestion or chain-level disruptions *** ### Regulatory Risk The regulatory environment for decentralized finance and autonomous financial systems is evolving. Future regulatory changes may: * Restrict access to the protocol * Impact vault operations * Affect token utility or distribution * Require modifications to system design *** ### Performance Risk Historical or back-tested performance does not guarantee future results. Actual performance may differ materially due to: * Market conditions * Strategy availability * Liquidity constraints * Execution variability *** ## Risk Philosophy Paravel is designed to reduce risk through: * Constrained execution environments * Isolated atomic strategies * Continuous monitoring and reallocation * Pre-approved transaction boundaries However, these mechanisms reduce risk — they do not eliminate it. *** ## Full Documentation * Terms of Service: * Full Risk Factors: [Whitepaper](https://drive.google.com/file/d/1NUPMzHiMkyWX_kwh7iQrGvch3xx6ePaP/view) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://paravel-citadel-dao-llc.gitbook.io/paravel/legal/risks-disclosures.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.