Risks and Considerations
While ELPP offers many advantages, it is important to understand the inherent risks:
Trading Performance Risk
The value of ELPP tokens is directly tied to broker trading performance:
During profitable periods, ELPP value increases
During unprofitable periods, ELPP value decreases
Historical performance is not indicative of future results
Withdrawal Timelock Considerations
The epoch-based withdrawal system means:
You cannot instantly withdraw your funds
Withdrawal periods extend during times of negative performance
You must plan ahead for liquidity needs
Smart Contract and Market Risks
As with any DeFi protocol:
Smart contracts may contain vulnerabilities despite audits
Technical issues could affect accessibility or functionality
Extreme market volatility could affect broker performance
Liquidity crises in external markets might impact trading operations
Important Disclaimers
Variable Returns: Unlike fixed-rate products, returns are variable and dependent on broker performance
Timeframe: Performance should be evaluated over longer periods rather than daily fluctuations
Tax Implications: The automatic reinvestment may have tax implications in some jurisdictions
Please note: As with any investment, there are inherent risks. Past performance does not guarantee future returns, so invest responsibly and consider your risk tolerance before participating.
Last updated