Risks & security - Murmurr Docs

Digital assets involve risk of loss. Nothing in these docs is investment, legal, or tax advice.

Risk categories

Risk	What it means
Smart-contract	Bugs or exploits in Lagoon, Morpho, Safe modules, CCTP adapters, or peripheral contracts
Market / curator	Morpho market design, oracle failure, insolvency, curator / vault strategy risk inside sleeves
Mono-collateral	Sleeves like Murmurr USDC WHYPE / Murmurr USDC aHYPER concentrate collateral risk in one asset (WHYPE or aHYPER) - no diversified Morpho market book
Liquidity	Inability to exit a position size quickly without heavy impact - mitigated by constraints + sentinel, not eliminated
Allocator policy	On diversified sleeves / Lagoon routing, the bot can be wrong, lagged, or constrained into suboptimal books
Cross-chain / CCTP	Bridge latency, operational failure, or chain outages while capital is in flight
Settlement / async	Deposit and redeem queues - timing and liquidity availability affect when you get USDC back
Key / role	Misconfigured roles, compromised signers, or governance mistakes at the Safe / Lagoon role layer

Trust model (high level)

LP shares are on-chain - Murmurr does not custodially hold your wallet.
Execution is permissioned - reallocation should run through scoped roles, not unbounded EOA god-keys.
Policy is meant to be inspectable - public docs + on-chain addresses + product transparency surfaces.
Lagoon / Morpho are external protocols - their audits and docs matter; Murmurr inherits their risk surface.

What “non-custodial” does not mean

It does not mean risk-free. It means Murmurr is not asking you to trust an off-chain custodian with your private keys. You still trust smart contracts, market structure, bridges, and policy.

Mitigations

Mitigation	Helps with	Does not erase
Cash buffer + USDC Morpho sleeve	Orderly exits	Bank-run liquidity crises
Concentration / liquidity-share caps	Thin-market traps	Systemic Morpho / oracle events
Sentinel liquidity share trim	Persistent oversized share of exit liquidity (incl. mono sleeves)	Instant black swans between polls
Sentinel Pharos / util exits	Confirmed collateral floor breach or market overheat (diversified sleeves)	Assumed/cb* skips; thin exit liquidity leftovers; single-vendor score outage
Soft-floor risk ranking	Preferring higher-quality names at similar yield on diversified sleeves	Model error; stale provider scores; coverage gaps
Morpho vault wrapper (even mono)	Lagoon can exit a whole sleeve without Blue market surgery	Collateral / oracle risk inside the sleeve
CCTP native USDC	Wrapper / swap mess	Bridge and destination-chain risk
Chain-aware expansion	Missing yield elsewhere	Deploying too early on immature chains

On-chain data - verify contracts yourself
Sentinel
FAQ