KESTREL DOCS

Understand tokenized DeFi strategies.

Learn how Kestrel packages on-chain strategies into tokens, what happens when you buy or sell, and which risks matter before using the protocol.

Risks

Kestrel is built on DeFi infrastructure. That means it inherits both normal digital asset risks and strategy-specific risks.

Smart contract risk

The protocol is implemented as smart contracts on Solana. Bugs, exploits, incorrect assumptions, or unexpected interactions with other protocols can cause loss of funds or failed transactions.

Strategy risk

Each token can use a different strategy. Depending on the token, risks may include:

  • Lending-market risk.
  • Borrowing and leverage risk.
  • Forced deleveraging or liquidation of protocol positions.
  • Swap and slippage risk.
  • Liquidity-provision or impermanent-loss risk.
  • Staking or slashing risk.
  • Stablecoin or asset depeg risk.

Review the token page before buying so you understand which risks apply to that token.

Third-party protocol risk

Kestrel strategies may depend on external lending markets, swap venues, liquidity pools, staking systems, bridges, price oracles, indexers, and RPC providers. A failure or exploit in any of those systems can affect the strategy.

Oracle and pricing risk

The protocol relies on price data to value assets and calculate token prices. If oracle data is stale, unavailable, manipulated, or incorrect, transactions can fail or strategy accounting can be affected.

Active management and operator risk

Kestrel operates automated services that call protocol instructions to manage strategies. These services use privileged operator keys constrained by the smart contracts.

Operational mistakes, misconfiguration, downtime, or key compromise could affect strategy performance, redemption timing, or token value.

Liquidity and redemption risk

Selling a token may not always settle immediately. If collateral has been deployed into strategy positions, the protocol may need time to free liquidity. See Redemptions.

Interface risk

The website is an interface. It can show delayed or incorrect data, fail to load, or depend on third-party services. Always review the transaction shown in your wallet before signing.