Criteria for vaults to be considered High Risk or Low Risk?

[MasterMojo]

Can someone chime in what is the criteria for a vault to be Low Risk or High Risk? @jensei @Recognized_Delegates Is there a formal document anywhere?

Or a vault is low risk if it has no peg and swap risk?

Thanks guys!

[Ceazor]

I would also like some clarity on this. Perhaps its something that BlockAnt just defines?

[gonemultichain]

These two posts may help you

BA Labs baseline criteria for recommending new ARKs

BA Labs baseline criteria for recommending new ARKs Here we outline the “first rule” checklist BA Labs will use before doing any deeper collateral assessment when recommending new ARKs for Lazy Summer Protocol. Only ARKs that pass these baseline criteria move to a full collateral and risk review, unless we explicitly state why we are making an exception. BA Labs reserves the right to modify or omit any of the below, while providing a clear rationale for any such changes or exclusions. This shoul…

The Path to $1B+ TVL: Onboard Medium - and High-Risk Vaults for Lazy Summer Protocol

Title: {RFC} The Path to $1B+ TVL: Onboard Medium - and High-Risk Vaults for Lazy Summer Protocol Author(s): @samehueasyou Related Discussions: Unified stablecoin strategies with variying risk levels , [RFC] Onboard EURC to Base , [RFC] Onboard ETH Euler Vaults on Mainnet Submission Date: Wednesday, March 5th, 2025 “Winning has a price.” - Michael Jordan [image] Summary This proposal calls for the creation of two new vault categories—Middle Risk and Higher Risk—to expand Lazy Summer Pr…

[jensei]

hey @MasterMojo, apologies, I must have missed this one, as @gonemultichain mentioned - the latest post from @BlockAnalitica was aimed at that - to help proposers of new ARKs to figure out whether a specific strategy is fit or not. I have now also integrated it into the RFC Template for ease of access.

I have also just reached out to BA if they could expand on Lower / Higher Risk classification as a part of the baseline criteria.

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{EDIT} BA has shared their view on the Risk tier classification:

BA Labs baseline criteria for recommending new ARKs

Risk tier classification (Lower Risk vs Higher Risk) Below is a rough qualitative classification used to get a clearer picture of which fleet (Lower Risk vs Higher Risk) an ARK belongs to and how conservative caps, rebalance limits, and monitoring are to be set. Higher Risk (any of the following flags): Leverage or looping to earn yield (borrow to supply, recursive leverage, delta-neutral leverage, etc.). Cross-chain exposure (bridges, multi-chain allocators). Non-instant liquidity where exit …

[MasterMojo]

This post helps a bunch; thanks!