Risk Warnings and Disclaimers Statement
Nothing on this site is an offer to sell, a solicitation to buy, or investment advice. This statement is provided for information and is not legal advice. Read it before depositing.
You can lose money
The strategy is directional. It takes long and short positions in perpetual futures and it can lose. Trend-following has extended losing periods by construction, particularly in choppy markets.
The deepest drawdown in the simulated period was 9.3% over 92 days. That is one window's outcome, not a limit.
Most of the track record is simulated
The strategy went live on 27 May 2026. Everything before that is a backtest with modelled costs. Simulated results routinely overstate what follows. The live sample is weeks long.
Audit scope
Lagoon's vault framework has been reviewed by Nethermind Security across its release history and by Trail of Bits on the two versions our vaults run. Those reports are public. Our own curator services, NAV computation, executors and permission configuration have not been audited, and there is no public bug bounty.
Lagoon published a low-level bug disclosure in January 2026, after those reviews. An audit is evidence of effort, not a guarantee.
Redemption is not immediate
A 7 day cooldown, then a wait for the next settlement, which depends on our backend being alive to push a NAV. An extended outage queues redemptions for as long as it lasts.
Operational keys are a live risk surface
The strategy is driven by hot keys that sign continuously: a valuation manager pushing NAV, a curator settling, a trading key sending orders. Custody models differ between deployments and the authority each key holds differs with them.
Do not rely on a documentation page for this. Read the Safe's owner set, threshold and modules onchain before you deposit, and re-read them if you hold a position for any length of time. Commands are on Security.
Venue risk is concentrated
The live strategy executes overwhelmingly on Hyperliquid. A halt, exploit, socialised loss event or insolvency there would affect the portfolio directly.
Other risks
Oracle and pricing. NAV is computed off-chain. An error inside the guard bounds still prices shares wrongly and transfers value between whoever transacts in that window and everyone else.
Liquidity. Large positions can be hard to exit at modelled prices in thin conditions, particularly in the tokenized RWA sleeves.
Model risk. The strategy is calibrated on history and the effects it harvests could weaken as these markets mature.
Regulatory. See Regional Availability.
Operational. Off-chain infrastructure can fail. Redundancy and monitoring are in place; outages remain possible.