FAQ & Risks


Why isn't my position opening?

  • Our UI limits swaps above 50k, do partial opens

  • Currently no total position limit for LYFs

  • Opening/Closing is disabled when slippage is above 1%

What considerations are there for starting a new LYF vault?

  • Ensuring sufficient TVL to reduce slippage when opening/closing & liquidating positions (bout 6-8mil to handle the max position size of 100k without significant slippage)

  • Sufficient TVL for adoption, ensure that LP pairs are significantly liked to the point of being worth to deploy (since each vault costs a certain amount of SOL in fees)

Why doesn't Tulip offer Borrowing?

For now, our borrowing is done automatically through our leverage yield farming users. In the future we will offer borrowing functions for our users, when we are done with a v2 protocol upgrade.

Difference between APR & APY

APR is without compounding, APY is with compounding. Our vaults display APY because we auto-compound for you, so they are automatically compounded. Raydium displays in APR because

Why is Saber's APY & your APY the same: Saber displays APY without auto compounding, so your real rewards are lower. We help you achieve the displayed APY on saber, which is the same as ours.

Why is my Rewards not as much as the indicative APY?

The rewards from yield farming (APY) is broken down into Trading Fees (default APY) + Farm Emissions (Default APR). The "Rewards" display does not include the trading fees, only the farm emissions, and thus are usually slightly below the total APY displayed. You will get the trading fees APY when you break the LP into the respective tokens again, while farm emissions are automatically sold into more LP for you.

Protection against Volatility or Flash-loan?

We have a few different protection measures in place. we use a one hour rolling average to calculate prices and smooth out impacts from large price movements. When the hour rolls over, price requests within the first 5 minutes use the last hour's rolling average.

When sampling prices if the newest sample we recorded is X% greater/smaller than the rolling average, we mark a price feed as disabled which prvents any price updates from being pushed, which will cause price feeds to become stale and not allow liquidations / position opening


Smart Contract Risks

All of Tulip Protocol's code is novel and experimental. Please use discretion when depositing funds. While we have been peer reviewed by the Solana Foundation and other developers, we are not liable for funds lost due to smart contract exploits.

Price Risk

Crypto-assets displayed on our site (e.g. SOL, RAY, SRM) are exposed to market fluctuations. Your capital might change due to price action and other external factors. Take note that price fluctuations also cause "Impermanent Loss" when dealing with Liquidity Pools (LPs).

Liquidation Risks

We liquidate positions with a 85% loan-to-value buffer, which means that if your position equity drops sufficiently, we will force-close the position and collect a 5% bounty (which is added to our insurance fund). This can happen if the borrowed token goes up too much, or the equity token drops too much.

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