Negative Yield Returns

Managing negative yields

Depending on market conditions, the total returned from the farmer may be less than the amount staked. If so, the epoch will enter a no-draw scenario.

To minimise any loses, Nezha will not deduct any costs. Additionally, Nezha runs a discretionary fund. While the discretionary fund is not part of the smart contract, the Nezha DAO may determine to fully or partially address any loses, or make other compensation as it see fit and is able to do so. This fund is not a protection against loses and participants must accept that staking with Nezha subject them to the risks of Nezha's yield farmer.