Kamino Docs
Automated Liquidity
Automated Liquidity
  • Introduction
  • CLMMs and Kamino
  • Liquidity Vaults
    • Liquidity Vault Overview
      • Auto-swap
      • Auto-compound
      • Auto-rebalance
    • Yield & APYs
    • Ranges & Rebalancing
    • Fees
    • kTokens
    • Vault Strategies
      • SOL-only Strategies
      • Stablecoin Strategies
      • Mixed Strategies
        • Volatile - Volatile Strategies
        • Volatile - Stable Strategies
    • Creator Vaults
      • Step 1: Core Setup
      • Step 2: Strategy Setup
      • Strategy Simulator
      • Creator Strategies
        • Fixed Range
        • Tracker
      • Rebalancing
    • Private Vaults
  • Farms & Locked Liquidity
    • Overview
    • JTO Liquidity Program
    • bSOL Liquidity Program
    • Staking Your kTokens
  • Security & Risks
    • Risks & Technical
      • Impermanent Loss
      • Depeg Events
      • Oracles
    • Deposit & Withdrawal Limits
    • Security Audits
  • Resources
    • Kamino App
    • Blog
    • Discord
    • Twitter
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On this page
  • What are the risks of using Kamino?
  • Will Kamino protect my funds?
  • Which Oracles does Kamino use?
  • Is it possible to get cover/insure Kamino positions?
  1. Security & Risks

Risks & Technical

PreviousStaking Your kTokensNextImpermanent Loss

What are the risks of using Kamino?

Beyond smart contract risk, which the team takes precautions to mitigate via numerous internal tests and external audits, Kamino entails the same risks that are present on the CLMM DEXes it is built on, of which the primary one is impermanent loss:

Impermanent Loss

Kamino is a CLMM automation protocol, and none of the Vaults are independent of the underlying DEX pools.

Will Kamino protect my funds?

Kamino’s smart contracts have passed a third-party security audit from Smart State, and the code is thoroughly tested. While Kamino takes precautions to protect users’ funds, it does not guarantee funds can be 100% shielded against an exploit.

Kamino can help users increase the efficiency of their concentrated liquidity positions, but it is not a capital protection strategy. Market movements will affect the value of users’ liquidity positions, as will for stable and pegged assets.

Which Oracles does Kamino use?

Kamino uses two oracles:

  • PYTH: We use Pyth for all feeds the tokens that we need which have a Pyth feed, currently, for the mainnet tokens, they are USDC, USDT, SOL, stSOL.

  • SWITCHBOARD: we use them for USDH and all the other tokens. Switchboard is aggregating prices from Jupiter, Mercurial, Saber, and Orca and other sources to provide an average.

  • TWAP: Kamino has TWAP and EWMA feeds, which adds to the resilience of oracles.

Here's more info on Kamino's Oracle infrastructure:

Oracles

Is it possible to get cover/insure Kamino positions?

Yes. Users can find smart contract cover for Kamino positions on Amulet Protocol.

de-pegging events