# Risk Class Mechanism

Diamond Risk Class for a yield-generating vault could be measured by several factors, including:

1. Strategy risk
2. Protocol risk
3. Bridge risk
4. Pool asset risk
5. Diversity of protocols and chains&#x20;
6. 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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