# Yield Risk Engine V1 & V2

Our yield risk engine is designed to put a static cap on how much a yield asset can appreciate over time. It's designed to reduce risk exposure to [inflation attacks](https://docs.openzeppelin.com/contracts/5.x/erc4626) where users are able to donate to an ERC-4626 vault and artificially increase the value of a vault token in order to borrow more against it. This type of attack happens [quite frequently](https://www.theblock.co/post/348785/analysis-of-700k-oracle-manipulation-exploit-highlights-vulnerabilities-in-defi-vaults). The yield risk engine was designed in collaboration with Gauntlet.

Disclaimer: No risk strategy can 100% protect against any type of attack. This risk engine should be considered a part of a broader risk strategy - we provide absolutely no warranty of effectiveness.&#x20;

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1. Navigate to the contract on HyperEVMScan

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2. Check the current creationFee. This is the amount in the native token (in this case HYPE) that it will cost to spawn a new Yield Risk Engine.

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3. Accept Terms - write to this tx to signify your acceptance of our disclaimer

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4. Write a "Create" Tx. In this case the user is using one of our ERC-4626 vault price feeds, and paying 6 HYPE to create the yield risk engine. The cap they've chosen is 20%.

<figure><img src="https://1263318908-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWevx0b0VM747CowY7OG1%2Fuploads%2FnWZLDBHN5D7oCxJA396W%2Fimage.png?alt=media&#x26;token=109c2413-7e6c-4ec2-b238-1a2f674b497e" alt=""><figcaption></figcaption></figure>

4. Done! You've spawned a new chainlink-interface-compatible yield risk engine which should cap the value of the asset to 20% over time.

<figure><img src="https://1263318908-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWevx0b0VM747CowY7OG1%2Fuploads%2F2VqVvA5QWUJ126yE6VNz%2Fimage.png?alt=media&#x26;token=65ff36d8-7777-412b-8261-0b2724cc6b4d" alt=""><figcaption></figcaption></figure>
