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AMM risk
Lixir's use of external AMMs introduces risk
Every Lixir Vault utilizes one or more external AMMs. This means that a deposit made in a Lixir Vault will end up in a smart contract that belongs to one of these external AMMs. Although Lixir will do their due diligence before integrating an AMM, there is smart contract risk in play that Lixir has no control over. This is also something to take into account when buying a DeFi insurance policy that covers Lixir Finance smart contract exploits - these policies typically don't cover any exploits of external contracts used.
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