# Risks * **UNDERLYING PROTOCOL RISKS:** Numerical's yield is derived from strategies deployed on several defi protocols. an exploit or hack that touches the aforementioned could result in TVL drainage * **CENTRALIZATION RISK:** Since the V1 smart contract is manually managed by an admin wallet that deploys and executes some contract functionalities, there is a risk of misusage of funds and trust plays an important role. Future versions of the contract will be geared towards a decentralized approach that requires little to no human interaction. * **STRATEGY UNDER PERFORMANCE:** Negative performance of our strategies that could result in a loss. While this is a risk that we do not envision, its still something worth pointing out given our full transparency approach. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://numerical.gitbook.io/numericalfi/risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.