Third-Party Smart Contracts

Teahouse team has reviewed the smart contracts and/or their audit reports for various DeFi protocols used and confirmed that the smart contracts are authentic. Where applicable, third-party project owners have rectified issues found in the audit reports.

In particular, Beta+ will execute spot trades on 1inch and open long/short positions with leverage on GMX. Any excess assets will accrue interest in AAVE by supplying liquidity. As all three protocols are well-established and have undergone industry-recognized audits and operated successfully for a significant period of time while withstanding various market conditions, they are extremely low-risk.

Market Conditions

The Strategy Manager actively monitors the algorithm which utilizes risk-parity to achieve a constant volatility target of ~20% annually. In case of abnormal price volatility, the managed asset could experience a negative return.