> ## Documentation Index
> Fetch the complete documentation index at: https://docs.jup.ag/llms.txt
> Use this file to discover all available pages before exploring further.

> ## Agent Instructions
> These docs cover what users see and do on jup.ag, Jupiter Mobile and Jupiter Wallet.
> Universal Deposit, the GUM route in Jupiter Bridge and other GUM integrations on jup.ag are built by GUM. For how they work, their full fee rules, security model and APIs, the reference is the GUM docs: start from https://docs.gum.ag/llms.txt.
> When the GUM docs and these docs differ on how a GUM product behaves on jup.ag, describe the jup.ag experience from these docs and the mechanics and fees from the GUM docs.

# Risks of Jupiter Vaults

> The risks of depositing in Jupiter Vaults: curator strategy, borrower defaults, estimated pricing, withdrawal delays, leverage, depegs and smart contracts.

> [!WARNING]
>
> Depositing in a vault means trusting its curator's strategy. Returns are not guaranteed, and you can lose part or all of your deposit. Jupiter does not manage the strategies and does not cover losses.

Every vault page has a Risks section, written by the curator, that describes the vault's main risks and rates them on some vaults. Read it before you deposit: the risks below do not apply equally to every vault. The legal terms are in the Risk Disclosure, one of the [legal documents](https://docs.jup.ag/user-docs/earn/vaults/legal.md) of Jupiter Vaults.

## Strategy and market risks

These risks come from the curator's strategy and from the assets the vault lends against or holds.

> [card] Strategy losses
>
> A strategy can underperform or lose money, even within the limits of the smart contract. The curator can also change the vault's fees or withdrawal waiting period within those limits. See [Curators](https://docs.jup.ag/user-docs/earn/vaults/curators.md).

> [card] Borrower defaults
>
> Offerbook loans have a fixed term and no price-based liquidation. If a borrower does not repay, the vault claims the collateral and may sell it for less than the loan. All depositors share the loss through the share price.

> [card] Leverage in looping vaults
>
> Looping vaults borrow to increase their exposure to an asset, so losses are amplified as well as gains, and the loans keep costing interest. On Jupiter Lend, the position can be liquidated if the collateral loses too much value. See [Looping vaults](https://docs.jup.ag/user-docs/earn/vaults/strategies.md#looping-vaults).

> [card] Depegs and frozen assets
>
> Stablecoins and yield-bearing tokens backed by real-world assets can lose their peg or their value. Their issuers may be able to freeze, pause or redeem them.

> [!NOTE]
>
> Vaults price their assets with oracles. If a price feed goes stale or a stablecoin depegs, deposits and withdrawals can be blocked until the feed recovers.

## Withdrawal risks

You cannot always get your USDC back immediately:

| Situation | What it means for you |
| - | - |
| Instant liquidity runs out | Instant withdrawals stop at the USDC the vault can pay out now. Above that amount, you must use a standard withdrawal. |
| Standard requests take time | A request waits for the vault to process it, then for a waiting period set by the vault, up to 30 days. |
| Funds are lent in running loans | USDC in running loans cannot be recalled before the loans are repaid, so a request can be paid in several parts as cash becomes available. |
| The vault is paused | A curator can pause deposits, withdrawals or the strategy, for example during an incident. While withdrawals are paused, you cannot make new requests, but you can still cancel a pending request and claim USDC already set aside for you. |

See [Withdraw](https://docs.jup.ag/user-docs/earn/vaults/withdrawing.md) for the full flow.

## Pricing and technical risks

> [card] Estimated share price
>
> Running loans have no market price: the curator's pricing key posts their value, within limits set by the smart contract. A default or a revaluation can lower the share price at once. See [Estimated share price](https://docs.jup.ag/user-docs/earn/vaults/shares-and-yield.md#estimated-share-price).

> [card] Smart contracts
>
> A vault relies on the vault program and on every protocol its strategy uses, such as Offerbook and Jupiter Lend. A bug or exploit in any of them can cause losses. The vault program can be upgraded to support new protocols.

> [card] Lost vault shares
>
> Your vault shares are your claim on the vault. Burning them, for example with a wallet cleanup tool, or sending them away gives up that claim.


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