Beta software and smart contracts
Levee is beta software. Its contracts are tested (unit, invariant and fork suites) and have no admin function over your positions, but a bug could still lose some or all of the funds in them. The vaults have no deposit cap, so nothing limits how much of the money in a vault a bug could reach. The security chapter lists every privileged key and what is still open.
Providing liquidity
- A liquidity position can be worth less than simply holding the two tokens, and the loss grows with the price move.
- A concentrated range stops earning fees once the price leaves it, and then holds only one token.
- Fees vary with volume and can be small; they do not always cover the loss from price moves.
- Automated rebalancing and compounding run on keeper bots that can be late, fail or cost gas.
Hedged vaults
A hedged vault pairs a pool position with a short on Lighter. The hedge is reported on chain by an off-chain key; if a report is more than an hour old, or equity jumps by more than 15 %, deposits and withdrawals pause until it is fixed. A hedge can lag, cost funding, be liquidated, or fail if Lighter is unavailable. A hedged position still loses money in some markets.
The hedge margin is not held by the vault contract. It sits on Lighter in an account owned by the vault’s funder key, which Levee’s operator holds, because a contract cannot own a Lighter account that trades. Whoever holds that key can withdraw the margin there; the contract lets at most 25 % of the vault’s on-chain assets be moved to Lighter per day (10 % per call). If the key is lost, stolen or misused, or Lighter fails, the vault can lose that margin. Exits larger than what the vault holds on chain wait until margin is brought back. See section 5 of the terms.
Structured notes
The Protected SPY note puts 85 % of a deposit into SGOV, a T-bill token, and 15 % into the SPY Hedged vault, for a 90-day term. Its floor, about 0.859 per unit deposited at the start of the term, is arithmetic, not a promise: nobody guarantees it, it assumes SGOV can be sold through its Uniswap pool for what it is worth, and it is measured in WETH, not dollars. Leaving before maturity costs 0.5 %. The note’s slice follows SPY Hedged, so while that vault is paused the note’s deposits and withdrawals fail. The Income NVDA note is not open yet.
Perps and leverage
- Leverage multiplies losses as well as gains. A position can be liquidated and the margin lost.
- Funding is charged or paid while a position is open and can move against you.
- Orders are signed by an order key Levee’s server holds for you. It cannot withdraw, but it signs the orders you send, within price and size bounds.
- Lighter is a separate exchange with its own risks, rules and outages.
Pre-market markets
Pre-market perps pay winners from the market’s free balance; anything it cannot pay at once becomes a deferred claim you collect later. Liquidated traders keep nothing. The index only drives funding, never fills.
Limit and range orders
A limit order is a one-sided liquidity position. It can fill only in part, and if the price crosses it and comes back before the order is settled, it converts back.
Tokens
- Stablecoins such as USDG can lose their peg.
- New tokens from the launch pipeline can be illiquid, manipulated or go to zero.
- Tokenised stocks follow their market’s hours and can gap when it reopens.
- Listing a token in Levee is not an endorsement.
The network and the interface
Robinhood Chain can be congested, halted or reorganised; gas costs change. The interface and the API can be down or show stale data; check a transaction in your wallet before you sign it. You can always reach the contracts directly.
Points
Points have no cash value and are not a promise of any token or reward.
No advice, your responsibility
Nothing in Levee is investment, financial, tax or legal advice. You decide what to do with your funds, you are responsible for the taxes that follow, and you must not use Levee where the law does not allow it. See the terms of use.