Important Disclaimer

Last Updated: May 2026

⚠️ ONYX VAULT IS EXPERIMENTAL DEFI SOFTWARE. LOSS OF ALL DEPOSITED FUNDS IS POSSIBLE. READ THIS ENTIRE DISCLAIMER BEFORE USING THE PROTOCOL.

1. Nature of the Protocol

Onyx Vault (the "Protocol") is a set of autonomous smart contracts deployed on the Base blockchain network. The Protocol is not a registered investment fund, investment advisor, broker-dealer, bank, or any form of regulated financial institution. There is no company, corporation, LLC, foundation, or other legal entity that operates, controls, or manages the Protocol.

The current version (V3) features an upgradeable strategy router, configurable performance fees, and a 6-hour governance timelock. The Protocol operates as decentralized, permissionless software. Strategies may be added, removed, or rebalanced via the timelock governance mechanism, giving users a window to exit before any changes take effect.

2. Audit Status

The smart contracts have undergone 8 independent internal security audits conducted by Nova Security Research, identifying and remediating 50+ vulnerabilities including all Critical and High severity findings. However, these audits were NOT performed by a professional third-party security firm. Smart contracts may still contain undiscovered vulnerabilities that could result in the complete and irreversible loss of deposited funds.

3. Risk of Loss

You may lose ALL of your deposited funds. By using the Protocol, you acknowledge and accept the following non-exhaustive list of risks:

Smart contract bugs: code vulnerabilities, reentrancy attacks, logic errors, or integer overflow/underflow issues
Oracle failures: price feed manipulation, stale data, or oracle downtime leading to incorrect valuations or liquidations
Liquidation events: future leveraged strategy additions may be liquidated during rapid market movements
Impermanent loss: future LP strategy additions may be subject to impermanent loss
Protocol exploits: vulnerabilities in integrated protocols (Aave V3, Aerodrome) could result in fund loss
Bridge risk: Base is an L2 network; bridge failures could impact asset accessibility
Key compromise: if administrative keys are compromised, the 6-hour timelock provides exit time but is not a guarantee
Regulatory action: government authorities may take action against DeFi protocols, potentially freezing or restricting access to funds
Network congestion: during high-demand periods, withdrawal transactions may fail or be delayed
Economic attacks: flash loan attacks, MEV extraction, sandwich attacks, or other economic exploits

4. No Guarantees on Yields

All Annual Percentage Yield (APY) figures displayed on the website and application are estimates based on current market conditions. Actual yields may vary significantly and can be:

Substantially lower than displayed estimates
Negative (resulting in net loss of principal)
Zero during periods of low market activity
Subject to change at any time without notice

Past performance does not indicate or guarantee future results.

5. Strategy Expansion Risks

The Protocol currently deploys funds primarily via Aave V3 lending and points farming strategies. As TVL grows, additional strategies (including Aerodrome LP positions and leveraged lending) may be activated via the 6-hour governance timelock. These expanded strategies carry additional and amplified risks including impermanent loss from LP positions and potential liquidation of leveraged positions during periods of high volatility. Users will be notified of strategy changes via the timelock mechanism and may exit before changes take effect.

6. Third-Party Protocol Risk

Onyx Vault integrates with third-party DeFi protocols including but not limited to:

Aave V3: decentralized lending and borrowing protocol (active integration)
Aerodrome Finance: decentralized exchange and liquidity protocol on Base (planned future integration)

Onyx Vault is not affiliated with, endorsed by, or partnered with any of these protocols. Risks inherent to these protocols, including smart contract vulnerabilities, governance attacks, and protocol downtimes, directly impact funds deposited in Onyx Vault.

7. No Insurance or Protection

Funds deposited in Onyx Vault are NOT insured or protected by any government agency, private insurance fund, or deposit protection scheme. There is:

No FDIC, SIPC, or equivalent protection
No private deposit insurance
No guarantee fund
No customer support or dispute resolution
No recourse in the event of fund loss

8. Sole Responsibility

By using Onyx Vault, you represent and warrant that:

You are solely responsible for your own financial decisions
You have conducted your own research and due diligence
You understand the risks of DeFi protocols, smart contracts, and cryptocurrency
You are not depositing funds you cannot afford to lose entirely
You are not relying on any representation or information from Onyx Vault as financial advice

9. Not Financial Advice

Nothing on this website, application, documentation, or associated materials constitutes financial, legal, tax, or investment advice. All information is provided for informational purposes only. You should consult a qualified financial advisor, accountant, and/or attorney before making any investment decisions.

10. Geographic Restrictions

The Protocol is not available to residents of the United States of America, or any jurisdiction where participation in decentralized finance protocols is prohibited or restricted by law. By using the Protocol, you represent that you are not a U.S. person and that your use of the Protocol complies with all applicable laws in your jurisdiction.

11. Experimental Software

Onyx Vault is provided on an "AS-IS" and "AS-AVAILABLE" basis without warranties of any kind, express or implied. The developers make no representations or warranties regarding the reliability, accuracy, completeness, or suitability of the software for any purpose.

12. Onyx Points

Onyx Points are not tokens, securities, or promises of future value. Points are a non-transferable, on-chain tracking mechanism with no inherent monetary value. Points:

Are NOT ERC-20 tokens and cannot be transferred, sold, or traded
Do NOT represent any ownership, equity, or claim on future tokens or assets
May or may not be considered in future protocol decisions at the sole discretion of governance
Carry NO guarantee of any airdrop, token distribution, or conversion to value of any kind
May be modified, reset, or discontinued at any time

13. Deposit NFTs

NFTs represent deposit positions only and carry the same risks as the underlying vault deposits. Deposit NFTs:

Are transferable ERC-721 tokens that represent your vault position
Transferring an NFT transfers the underlying vault position. The new holder inherits all associated risks
May have zero value if the underlying vault position loses value
Do NOT constitute a separate asset or investment. They are a representation of existing vault shares
Are NOT guaranteed to be tradeable on any marketplace at any price

14. Referral Program

Referral rewards are subject to change and paid from protocol fees. The referral program:

Rewards are paid from the protocol's performance fee allocation, NOT from referred users' deposits or earnings
Referral rate (currently 5% of referred yield) may be modified with 6-hour timelock notice
Self-referral is prohibited and may result in disqualification
The protocol reserves the right to modify or terminate the referral program
Referral rewards do not constitute a guaranteed income stream

15. Vault Seasons

Season parameters including TVL caps and fee structures may change with 6-hour timelock notice.

Genesis depositors' 0% management fee benefit is encoded in the smart contract and cannot be revoked by admin action
Season transitions (Genesis → Growth → Open) are admin-controlled via timelock
TVL caps may be reached before all users can deposit
Fee structures for future seasons may change

BY DEPOSITING FUNDS INTO ONYX VAULT, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND ACCEPTED ALL OF THE RISKS DESCRIBED IN THIS DISCLAIMER AND THE TERMS OF SERVICE.

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