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Setting a Risk Appetite
A Spool's Risk Appetite directly correlates to both the risk a Spool takes and the yield it generates in return. The Spool Risk Appetite can be an number between 0 and 10, in increments of 0.5:
  • Risk Averse (0):
    • The Spool will be strongly risk averse and generate less yield.
  • Risk Neutral (5):
    • If the Risk Appetite is set to 5, a Spool will weigh all protocols equally and will distribute funds equally across them.
  • Risk Seeking (10):
    • The Spool will strongly seek more yield and take on more risk by doing so.
Users are able to preview the expected outcome of any valid Risk Appetite input set in the UI between 0 and 10. This preview allows users to customize and tailor their Spools to their needs.
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