Investment Risks

Investment risk is addressed by the Aegis Protocol's conservative approach to collateral management and risk mitigation. By using BTC as the sole collateral and engaging in funding rate arbitrage, Aegis seeks to generate stable returns while minimizing exposure to market fluctuations. The protocol's governance structure allows for dynamic adjustments to strategies based on market conditions, ensuring that the system can adapt to changing environments. The Insurance Fund provides additional security by covering losses during adverse conditions, thus protecting the value of USDa holdings.