> For the complete documentation index, see [llms.txt](https://docs.ensemble.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ensemble.io/start-here/risks-before-you-deposit.md).

# Risks before you deposit

Review the market, liquidity, contract, data, cross-chain, and governance risks of Ensemble vaults.

You can lose money in an Ensemble vault, and you may not always be able to redeem immediately. Review each risk below before approving USDC.

## Leveraged market risk

Leverage can magnify the effect of an adverse price move. Fast price changes can cause large losses, and rebalancing over time can make the result differ from a simple comparison of the starting and ending prices.

## Tracking and execution risk

Vault returns will not exactly match a simple multiple of the basket. Cash buffers, rebalance timing, order fills, spreads, funding, fees, and pending asynchronous actions can make realized results diverge from the configured directional benchmark.

## Liquidity and redemption risk

Owning shares does not guarantee that all of them can be redeemed in the next transaction. Immediate redemption depends on available EVM liquidity and every active route and vault control. Capacity may be limited, paused, or unavailable even when a portfolio view still shows a share balance.

## Smart-contract and integration risk

Software defects or unexpected integration behavior can cause loss or block normal operation. The vault relies on supporting contracts, upgradeable proxies, tokens, built-in HyperCore reads, and external protocols. Any of them can contain defects or behave unexpectedly. An audit reduces some risk but never guarantees safety. Read the [public Pashov review](/safety/audits-and-security.md) for its scope and remediation outcomes.

## HyperCore and data risk

Strategy state spans HyperEVM and HyperCore, so reads and confirmations can arrive at different times. The strategy depends on HyperCore state and HyperEVM precompile reads. Asynchronous or stale state can delay confirmation. Displayed observations can also be stale or unavailable; they are not accounting authority.

## Cross-chain risk

Moving value across chains introduces systems outside the vault's core accounting path. Cross-chain routes add message, relayer, pool, authentication, and destination execution risk. Canonical accounting still settles at the HyperEVM vault.

## Governance and emergency risk

Authorized roles and emergency controls can change what users are able to do. Authorized roles can change bounded settings, pause routes, upgrade proxies, or take emergency actions according to contract permissions. Emergency operation can change normal deposit, rebalance, and redemption behavior.

## Before continuing

Confirm that you understand the selected strategy and its current transaction controls. Read the selected [vault page](/vaults/vaults.md), the [CircuitBreaker explanation](/safety/circuit-breaker.md), and the [important disclosures](/safety/important-disclosures.md). When you are ready to proceed, use [Connect and deposit](/use-ensemble/connect-and-deposit.md).