Is Arrakis Modular Safe?
Risk Grade: B (27/100)
Arrakis Modular is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — well-audited liquidity management platform with established client base, offset by inherent risks of upgradeable vault architecture and active LP management.
Arrakis Modular is a concentrated liquidity management platform with $73M TVL, trusted by 100+ token issuers for automated market making on Uniswap V4, Aerodrome, and other DEXs. Its B grade reflects well-audited smart contracts (ChainSecurity, Sherlock, WatchPug) and established liquidity management expertise, with moderate risk from the modular upgrade architecture that allows vault behavior changes.
TVL
$73M
Mechanisms
5
Interactions
4
Value Grade
D
Key Risks for Arrakis Modular Users
Arrakis vaults use an upgradeable design where vault managers can change how your deposited liquidity is managed by activating new modules. While there are security delays and whitelisting requirements, a compromised vault manager could potentially redirect funds.
Your funds are actively managed in concentrated liquidity positions. Unlike passive LP, if the automated strategy misjudges market conditions, you could experience higher impermanent loss than a simple buy-and-hold approach.
The platform manages liquidity for 100+ token projects. A bug in the core framework could affect all vaults simultaneously, though multiple security audits mitigate this risk.
Top Risk Factors
- •Arrakis Modular Meta Vaults use upgradeable proxy patterns where vault owners can activate new modules, fundamentally changing vault behavior. Module whitelisting provides security but vault owners retain significant control over user funds
- •MEV-aware market making strategies execute active liquidity management on concentrated liquidity DEXs (Uniswap V4, Aerodrome, Velodrome), creating execution risk if strategies underperform or make incorrect positioning decisions
- •100+ token issuers use Arrakis Pro for non-custodial liquidity management, creating concentration risk if a bug in the Meta Vault framework affects all vaults simultaneously
Risk Score Breakdown
Arrakis Modular's highest risk area is Track Record (6/15). Here's how each dimension contributes to the overall 27/100 score:
Read the Full Arrakis Modular Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?