⚖️Risk Class Mechanism
Diamond Risk Class for a yield-generating vault could be measured by several factors, including:
Strategy risk
Protocol risk
Bridge risk
Pool asset risk
Diversity of protocols and chains
Overall level of market neutrality
Together, these factors can provide a comprehensive measure of the risk associated with a particular yield-generating vault, allowing farmers to make informed decisions that align with their individual risk tolerance and farming objectives.
Diamond Risk Class Mechanism
Based on the risk ratings assigned to each metric, the total Diamond Risk class can be determined as follows:
| Risk Class | Score |
|---|---|
A | 9-10 |
B | 7.5-8.99 |
C | 6-7.49 |
D | 5-5.99 |
E | 1-4.99 |
By averaging the ratings assigned to each metric, the total Diamond Risk class for hodlify can be determined. For example, if the average rating falls within the A range (8.5-10), hodlify would be classified as having the safest Diamond Risk.
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