# Vault Risks

Yearn’s vaults can be exposed to multiple strategies. Each additional strategy increases diversification but also increases the probability that a strategy could lead to capital losses.

|Risk|Description|
|----|-----------|
|Governance|Multi-sig approves a strategy that leads to losses|
|Technological|Smart contract risks increase with the number of strategies and protocols|
|Market|Liquidation of leveraged strategies due to sudden price falls|
||Lower token prices lead to lower yields in naked liquidity mining strategies|
||High gas fees to deposit or withdraw adversely impact yield|
||High gas fees cause yield on strategies to be less than expected|
||Deposits too low to benefit from multiple strategies|
|Operational|Optimal mix of strategies not maintained|
||Liquidations because debt positions were managed incorrectly|
||Yearn Security Team interprets code incorrectly in new yield farm|
|Oracle|Incorrect price feed leads to liquidation in leveraged strategy|