> ## Documentation Index
> Fetch the complete documentation index at: https://docs.overpass.ag/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk model

> Risks inherited by Overpass yield tokens and checks integrators should perform.

Overpass makes lending-pool exposure easier to access and compose. It does not remove lending risk.

Every yield token inherits the conditions of its source pool.

## Main risk categories

### Source protocol risk

The source lending protocol controls the pool's core accounting, interest accrual, liquidation behavior, oracle dependencies, and reserve management.

If the source protocol has a bug or governance issue, the corresponding yield token can be affected.

### Source-pool liquidity risk

Withdrawals depend on available liquidity in the source pool.

If utilization is high, a holder may not be able to redeem a large position immediately. The pool may need borrower repayments or new deposits before withdrawals can complete.

### Cap and pause risk

Source pools can have deposit caps or paused deposits.

If a pool is at capacity, new deposits can fail. If deposits are paused, minting a yield token can fail even while existing positions remain withdrawable.

### Oracle risk

Some lending protocols require fresh oracle data for reserve refreshes, deposits, withdrawals, or risk checks.

If a source pool depends on a stale or deprecated oracle, Overpass transactions can fail.

### Bad-debt and impairment risk

If a source pool has bad debt or impaired assets, yield-token redeemability can be affected. Overpass surfaces this as source-pool-specific risk; it does not socialize risk across unrelated wrappers.

### Adapter risk

Adapter correctness is the main Overpass implementation risk.

Adapters must correctly read source accounting, handle rounding, build protocol instructions, enforce caps, detect pause state, and produce accurate quotes.

## Safety design

Overpass is designed around:

* deterministic accounting from source protocols
* explicit protocol adapters
* source-pool state checks
* cap and pause handling
* quote warnings
* conservative UI blocking for likely failures
* adapter tests for share conservation, rounding, redeemability, and edge cases
* independent audit and monitoring paths for wrappers and adapters

## Integrator checklist

Before presenting a route, check:

* source protocol
* source pool
* wrapper mint
* underlying mint
* source-pool cap
* source-pool pause state
* utilization and withdrawal liquidity
* oracle status
* quote warnings
* creator fee
* protocol fee
* registry verification

For collateral or leveraged integrations, add independent risk limits and external valuation controls.

## User-facing language

Use clear language:

* "Yield token backed by a specific source pool"
* "Redeemability depends on source-pool liquidity"
* "APY is not guaranteed"
* "High utilization can delay or block withdrawals"
* "This token inherits risk from the underlying lending protocol"

Avoid language that implies guaranteed yield, instant redemption in all conditions, or protocol-wide backing across unrelated pools.