Setting a Risk Appetite
A Spool its Risk Appetite directly correlates to both the risk a Smart Vault takes and the yield it generates in return. The Risk Appetite can be an number between 0 and 10, in increments of 0.5:
Risk Averse (0):
The Spool Smart Vault will be strongly risk averse and generate less yield.
Risk Neutral (5):
If the Risk Appetite is set to 5, a Smart Vault will optimize for medium risk and medium yield.
Risk Seeking (10):
The Smart Vaults 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 Smart Vaults to their needs.
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