Yield Activation Risk

One of the key advantages of OpenDelta's Index protocol is its ability to generate additional yield from its constituents. Many native tokens can be staked, lent out, or deposited into DeFi money markets—a process we call yield activation. However, this approach introduces additional risks for token holders, with the exact level of risk varying depending on the specific yield-generating activity. OpenDelta employs three primary methods to generate yield:

• Staking

• Lending

• DeFi activities

In some of these cases, OpenDelta may engage with other counterparties or smart contracts that could introduce additional levels of risk. Our risk team evaluates each of these opportunities on a case-by-case basis and creates operating procedures to take advantage of them in the most secure and trustless way possible. Still, holders of ITs that offer yield activation should be aware of these risks and invest accordingly.