Treasury risks

Summary

Reah Treasury allows you to allocate crypto assets into curated on-chain strategies to earn yield.

While Reah reduces complexity through protocol and asset curation, risk scoring, and transparent data, all strategies still carry inherent on-chain risks.

Reah helps you make better decisions, but does not eliminate risk.

What treasury risk means in Reah

In Reah, treasury risk refers to the potential loss of funds or variability in returns when allocating assets into on-chain protocols.

This risk comes from:

• the underlying protocol
• the asset being deployed
• market conditions and liquidity

What to review before using treasury

Before allocating funds, review:

• Reah Risk Score: the overall risk level of the strategy
• APY: the current yield (not fixed and may change)
• Underlying assets: which assets are involved in the strategy
• TVL and historical trends: adoption and stability over time
• Liquidity conditions: whether you can exit easily and at what cost

You should also confirm how much capital needs to remain available for payroll, vendor payments, transfers, card spend, and other near-term obligations.

Core treasury risks to understand

The exact risk profile depends on how assets are allocated, but the most common areas to evaluate are:

Protocol risk

Even vetted protocols may have vulnerabilities or design flaws.

Reah mitigates this by curating a limited set of higher-quality protocols and providing risk indicators like TVL, trends, and the Reah Risk Score.

Yield and market risk

APY is variable and depends on market conditions, incentives, and asset prices.

Reah shows real-time APY and asset information, but returns are not guaranteed.

Liquidity risk

Some strategies may be harder to exit or may involve slippage.

Reah filters out most high-liquidity-risk pools, but market conditions can still change.

Asset risk

Different assets carry different levels of volatility and risk.

Reah focuses on mainstream, high-liquidity assets and avoids long-tail tokens.

Operational risk

Using treasury may introduce approval steps or internal controls that affect how quickly funds can be allocated or withdrawn.

Make sure the workflow matches your business's needs.

Planning risk

If too much capital is allocated to treasury, your business may reduce the cash available for day-to-day operations.

Treasury decisions should be made in the context of broader liquidity planning.

How treasury risk affects decision-making

Treasury is generally best suited for funds your business does not need for immediate operations.

Before allocating funds, ask:

1. do I understand where the yield is coming from
2. am I comfortable with the Risk Score and underlying protocol
3. what happens if the APY drops significantly
4. can I afford limited liquidity or a delayed exit
5. am I overexposed to a single protocol or asset

If your business may need immediate access to funds, those balances may be better kept outside treasury.

What to do next

• How treasury works in Reah
• Move funds into treasury in Reah
• Withdraw funds from treasury in Reah
• Claim treasury rewards in Reah
• Treasury timing, liquidity, and redemptions