# Risk Disclosure

Vaults are not without risk. We strongly recommend that you fully understand the following potential risks before investing:<br>

* Smart Contract Risk: Although the Nemo Protocol's code has been audited by professional security firms, no smart contract can be 100% guaranteed to be free of vulnerabilities. Bugs or exploits in the contracts could lead to a loss of funds.
* Impermanent Loss Risk: This is an inherent risk of providing liquidity to concentrated liquidity pools. Even though our strategies aim to mitigate it through dynamic rebalancing, impermanent loss can still occur during periods of high market volatility and may exceed the trading fees you earn, resulting in a decrease in the total value of your position.
* Upstream Protocol Risk: Our Vaults are built on top of third-party DEXs. If these underlying DEX protocols experience security vulnerabilities, are exploited, or cease operations, it will directly impact the security of the assets in Nemo Vaults.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.nemoprotocol.com/vaults/risk-disclosure.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.