> For the complete documentation index, see [llms.txt](https://numerical.gitbook.io/numericalfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://numerical.gitbook.io/numericalfi/risks.md).

# 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.