> For the complete documentation index, see [llms.txt](https://docs.clovis.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clovis.network/clovis/fees-limits-and-safety/risks.md).

# Risks

Understand the smart contract, oracle, liquidation, cross-network, liquidity, capacity, and wallet risks of using Clovis.

Clovis uses smart contracts, blockchain networks, Vault strategies, lending markets, oracles, cross-network messaging, and third-party infrastructure. Each part introduces risk.

### Smart Contract Risk

Smart contracts can contain bugs or behave unexpectedly. Security reviews and audits can reduce risk but cannot guarantee that a protocol is free of defects or losses.

Only interact with official Clovis interfaces and review every transaction before signing.

### Vault and Strategy Risk

Earn Vaults use configured strategies to generate returns. Strategy performance, liquidity conditions, smart contract issues, and market events can affect the Vault share price and the amount available when you Withdraw.

Vault returns are not guaranteed. The value represented by each `cloToken` can increase or decrease.

### Oracle and Market Risk

Borrow position health depends on asset prices, Vault share values, interest, and oracle updates. Changes to any of these can affect LTV or Health Factor.

### Liquidation Risk

A Borrow position can become eligible for liquidation when its collateral no longer provides enough coverage for its debt under the selected market's rules.

Single-collateral and Multi-collateral Markets calculate risk differently. Monitor the LTV or Health Factor shown for the position and consider adding collateral or repaying debt before the position reaches its liquidation threshold.

### Cross-Network Risk

Cross-network actions have multiple stages. The source transaction can confirm before the destination result is complete.

Routes can experience delays, failures, expiration, or temporary unavailability. Follow the status and any available recovery action shown by the app.

### Liquidity and Capacity Risk

Available liquidity, capacity, and route conditions can affect Supply, Withdraw, Bridge, and borrowed-asset release.

The total value of a Vault may be different from the amount immediately available for Withdrawal on a selected network.

### External Protocol Risk

Vault strategies or Borrow markets may interact with external protocols. Problems affecting an external protocol can affect Clovis positions that depend on it.

### Wallet and Signing Risk

Before signing, check:

* the connected wallet;
* network;
* asset;
* amount;
* destination address;
* route;
* fees; and
* estimated result.

Never share a seed phrase, private key, wallet password, or sensitive signing information.