# Strategy Risk

It refers to the risk associated with the vault's different farming strategies, such as auto market-neutral leveraged farming or funding rate arbitrage strategy.

### 1. Leverage level of the farming strategy

* It refers to the degree of borrowing or margin.
* The borrowing can be used to amplify potential returns or hedge the underlying assets. &#x20;

### 2. Level of market neutrality

* It efers to the degree of exposure to the broader cryptocurrency market, with higher levels of market neutrality indicating a more diversified portfolio that is less susceptible to market volatility.

### 3. Volatility of the underlying assets

* It refers to the degree of price fluctuations in the underlying assets, with higher volatility indicating a greater potential for gains or losses.&#x20;

It is important to note that the specific weightings and ratings assigned to each metric may vary depending on the strategy and its unique characteristics.


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