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

# Risks

Prodigy.Fi gives you a defined yield with defined outcomes. It is not risk-free. This page sets out what you take on, in plain terms. It is not exhaustive, and it is not investment advice. By using Prodigy.Fi, you accept these risks.

{% hint style="info" %}
Understand this before you subscribe: you always earn the defined yield, but your principal can convert into the other asset at your linked price. The yield is defined at subscription. The asset you hold at expiry is not.
{% endhint %}

#### **Conversion Risk**

This is the main one. At expiry, the oracle price decides which asset you hold. On a Sell High vault, if the price closes above your linked price, your asset sells at that price and you give up the upside above it. On a Buy Low vault, if the price closes below your linked price, your stablecoins buy the asset at that price and you now hold something worth less than you paid. You keep the defined yield either way. You are paid to take the other side of a price move.

#### Smart-contract Risk

The protocol is a set of audited contracts. Our smart contracts are fully audited with our security partners, as seen in the Security and Audits section

#### Oracle Risk

Settlement depends on external oracles, Pyth Network and Chainlink. A wrong, stale, or manipulated price at expiry could settle at the wrong level. However, two independent sources make that unlikely. 

#### Self-custody Risk

Prodigy.Fi is non-custodial. You hold your own keys, and no third party can freeze your funds. In return, lost keys, a mistaken approval, or a signature on a malicious transaction are your responsibility.

#### Regulatory & Availability Risk

Digital-asset regulation is evolving and varies by jurisdiction. Access or features may change in your region over time.

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