dETFs are onchain portfolio products. As with any onchain or financial product, there are important considerations users should understand before using them.
Portfolio composition risk
A dETF’s exposure depends on the assets included in its portfolio.
The composition of a dETF may change over time as part of portfolio updates or rebalancing. Changes in underlying assets or weightings can affect performance and risk profile.
Price and liquidity considerations
dETFs trade on secondary markets like other onchain tokens.
Market price may differ from the underlying portfolio value, particularly during periods of low liquidity or high volatility. Liquidity can vary between different dETFs and over time.
Integration risk
dETFs are designed to be composable within DeFi, including potential use as collateral or within other protocols.
These integrations depend on third-party platforms and may change, be limited, or be removed. Availability of specific use cases is not guaranteed.
Smart contract risk
dETFs rely on smart contracts to function.
While contracts are developed to high security standards and independently audited, vulnerabilities or failures cannot be completely eliminated. Users should account for smart contract risk when interacting with onchain products.