> For the complete documentation index, see [llms.txt](https://armorfi.gitbook.io/armor/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://armorfi.gitbook.io/armor/usdarmor-token/risks-breakdown.md). # Risks Breakdown For those who want to consider the risks involved in participating... This page covers the key concerns stakeholders may have and provides a deeper understanding of the Armor protocol and the characteristics of its design. ### Sending tokens to contracts #### Sending any assets or tokens to the contracts instead of calling their functions and sequencing correctly. If you don't know what this means should you even be doing this? Please use the interface provided on the Armor.fi website and avoid interacting with the smart contracts directly on etherscan unless you know what you are doing. Definitely do not send anything directly to a contract address. It will be unrecoverable and this is not how it works. Only interact with Etherscan contracts if you know what you are doing around what functions to call and sequencing steps. ### Withdrawal stability caps on arNXM Vault #### Weekly withdrawal limit on arNXM:wNXM swaps from the arNXM Vault The weekly withdrawal limit from the arNXM pool relies on the reserve that is kept within the smart contracts. Because only a limited amount of the Assets Under Management ("AUM") are kept in reserve each week when tokens are being re-staked, that is the full amount that may be withdrawn each week (excluding deposits that are made, which are not restaked until the next restaking period). Keeping a smaller fraction of AUM in reserves ensures a full run on the vault cannot happen in a short period of time. There is a delicate balance in this reserve amount between ensuring users always have liquidity, and ensuring we keep enough staked to maximize our APY and do not allow large runs on the vault; this balance will be adjusted by governance as needed. ### User balance tracking #### Smart Cover System may not perfectly track user balances There are a few cases where this might occur and lead to inaccurate coverage recommendations. Also considering the rapid pace of DeFi development... There may be a brand new product which might take a day or more to add to the system where possible. There may be issues receiving data from thegraph or other data providers to accurate track user balances and recommend coverage combinations. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://armorfi.gitbook.io/armor/usdarmor-token/risks-breakdown.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.