Thinking about activating Earn in your Vault? It can be an interesting way to earn extra returns on your crypto, but it’s important to be aware of the related risks.
With Earn, you lend out your crypto via BLOX to external parties who use it for various purposes, such as market liquidity or other financial activities. These purposes come with risks. While BLOX works with carefully selected partners that operate in regulated markets, there is always a chance that a party might fail to meet its obligations. In that case, you risk losing (part of) your lent crypto. This is known as credit risk.
BLOX takes several measures to minimize these risks as much as possible. For example, counterparties are assessed for creditworthiness, ongoing risk management is conducted, and BLOX works with multiple specialized partners.
Please note: Earn is not covered by a deposit guarantee scheme or any other form of insurance. You are personally responsible for any potential losses.
Want to learn more about the risks of Earn? Check out this page!