Beskar

Risk

Risk disclosures

Depositing in a Beskar vault means lending your stablecoins to borrowers on Morpho. You can lose some or all of your deposit. This page describes the main risks and what Beskar does about each. It is not exhaustive, and it is not investment advice.

01FX oracle risk

Markets price collateral in wFiat through Chainlink forex feeds. Feeds update on a deviation threshold or a heartbeat, whichever comes first. USD / ARS on Base uses a 0.5% threshold and a 24-hour heartbeat, so during a sharp devaluation the on-chain price can lag the market for up to a day. The oracles also assume one wFiat token is worth one unit of its fiat currency; a depeg of the token from its reserves is not priced in.

Mitigation. LLTVs are set well below typical stablecoin markets (77% for stables, 62.5% for volatile collateral) to absorb feed lag. Every oracle is deployed through Morpho's factory and checked against the raw Chainlink feeds before its market is enabled.

02Issuer and token risk

wFiat tokens are issued by Ripio. The token contracts are upgradeable and may be pausable or able to block addresses. A pause would freeze deposits, withdrawals and liquidations in every market that uses the token. A block on the vault or its adapter would trap funds.

Mitigation. Depositors should understand and accept the issuer's controls over the token before depositing.

03Liquidity risk

New deposits are supplied straight to the vault's USDC market. Withdrawals are paid from idle funds first and then from that market. If the USDC market is fully borrowed, withdrawals wait until borrowers repay or the allocator rebalances liquidity from another market. Once the USDC market reaches its cap, new deposits are refused until the cap is raised.

Mitigation. Morpho's adaptive interest-rate curve raises borrow rates sharply at high utilisation, which pulls in repayments. The allocator monitors utilisation and rebalances.

04Collateral and liquidation risk

Loans are repaid by liquidating borrowers' collateral. In a fast market crash, or if liquidators cannot act in time, a market can accrue bad debt, which reduces the value of vault shares.

Mitigation. Only liquid, widely used collateral is accepted (USDC, USDT, WETH, cbBTC, wstETH). Caps limit how much of the vault can sit in any one market.

05Curator and governance risk

Beskar, as curator, decides which markets the vault can lend into and how much. A poor decision could expose depositors to losses. Deposit and transfer gates have not been permanently disabled, so the curator could add access controls (for example KYC or geographic restrictions) in the future.

Mitigation. Every risk-increasing change, including installing a gate, is subject to a 3-day timelock, and fee changes to 14 days, so depositors can review pending changes and exit first. Roles are held by separate multisig Safes, and sentinels can cancel pending changes or cut caps instantly.

06Smart contract risk

Deposits rely on Morpho Blue, Morpho Vault V2, the market adapter, the oracle contracts and the wFiat token contracts. Any of them could contain a bug.

Mitigation. Beskar uses Morpho's audited contracts and factories without modification. A small seed deposit is burned at launch to block share-inflation attacks.

07Missing price feeds

Base has no Chainlink feed for COP, CLP or PEN, so those vaults hold deposits idle and earn no yield. wARS cannot accept wstETH as collateral because pricing it would need three feeds, and the oracle supports two.

Mitigation. Markets for these vaults will only be added once a reliable feed exists, and only through the 3-day timelock.