Vault Risks

#Custody changes

The vault owns the v3 NFT and users own ERC-20 shares. A depositor cannot directly reposition or withdraw that NFT. Access to underlying tokens depends on the vault redemption code and external position manager.

#Share accounting

The first deposit locks a minimum share amount. Later shares are minted from added liquidity relative to supply and tracked position liquidity, without pricing existing idle token balances or collected fees. Redemption, however, includes the caller's pro-rata share of idle balances.

A later depositor can therefore dilute earlier holders or redeem part of pre-existing donations and fees. The existing regression test demonstrates this capture; it is evidence of the limitation, not a mitigation.

#Fixed range

Pair, fee tier, lower tick, and upper tick are immutable for one vault. Users cannot individually rebalance the range. Out-of-range exposure can leave the vault concentrated in one asset and reduce fee earning.

A fully out-of-range position can require zero input on one side, but vault deposits require both desired amounts and both minima to be nonzero. Deposits can therefore fail while price remains outside the range.

A fully out-of-range position can return zero principal on one side, but redemption requires both token minimums to be nonzero. Vault shares can therefore be unable to redeem until the price re-enters the range.

#Slippage and deadlines

Deposits require nonzero minimums, a deadline, and a maximum slippage value no higher than 5%. Redemptions require nonzero token minimums and a deadline. These checks bound stated execution, not market loss after execution.

#External calls

The vault transfers two tokens, approves the v3 position manager, mints or increases liquidity, collects fees, decreases liquidity, and returns assets. Reentrancy guards and approval clearing reduce risk, but callback and nonstandard-token behavior still need independent review.

#Administrative surface

The vault records a default administrator for AccessControl, but pair, fee, ticks, factory, pool, and position manager are immutable. Reviewers must still verify inherited role behavior and factory deployment controls.

#Independent review

#Current phase

No vault is deployed and no final tick range is configured. Deposits are disabled. Any vault address shown outside future verified deployment records must be treated as untrusted.