F.A.Q

What are the risks?

Like everywhere in DeFi, the main risk pertains to potential smart contract exploits where your funds are located. Since ZyFAI does not maintain any vault contracts or similar entities, you are essentially relying on the security of the selected protocols contracts.

Furthermore, for those concerned, the AI agent cannot misuse your funds as it is only authorized to interact with the protocols you have whitelisted through session keys.

What are sessions Keys?

It's simple keys that provide temporary access to a user's account with specific permissions.

This is especially useful when a user wants to allow an app to execute transactions on their behalf.

During the onboarding process, you will select the protocols you are comfortable engaging with, guided by your personal risk management.

By doing this, you are configuring a session key to interact with specific protocols smart contracts based on your choices. The strength of session keys lies in their ability to limit actions based on predefined permissions.

For example, if you choose three specific protocols, your session key will be configured accordingly. This keeps your funds secure and enables interactions with predefined protocols.

When the Agent is rebalancing your positions?

The Agent checks daily to determine the best position to place your liquidity.

Who pay rebalance fees?

All rebalancing fees between your positions are covered by a paymaster that sponsors these fees. While rebalancing, nothing is deducted from your balance, ensuring optimal capital efficiency

How I can claim my rewards?

Based on the specific protocol, some assets are classified as auto-compounding, where the value of the underlying asset accrues over time (e.g., aUSDC on AAVE).

However, some require manual claiming of rewards. With ZyFAI, you can choose to continue with manual claiming or allow the agent to auto-compound your rewards. The agent does this by automatically claiming rewards daily, selling them, and reinvesting them back into your position.

Could I update the protocol selection?

Yes, from your dashboard page, you can create a new session key with new protocols and newly whitelisted contracts that enable the agent to interact.

By making this selection, you authorize the agent to farm specific protocols.

Could I create my own strategy?

Not yet. Currently, the AI agent is only programmed for stablecoin farming on Sonic.

In the upcoming update, you will be able to configure any strategy you desire.

What are the protocol fees?

An actual fee of 7.5% will be taken on your earnings. This means that the ZyFAI protocol will only collect a performance fee on what you earn.

Example: If you deposit $10,000 and achieve a steady 15% APY over one year, you will earn $1,500. From that amount, ZyFAI will only take 7.5%, which amounts to $112.50.