Is Sommelier Safe?

|Yield
C

Risk Grade: C (43/100)

Sommelier is rated as elevated risk — multiple novel mechanisms and notable interaction risks.

Moderate risk — interesting architecture, but depositors are trusting opaque off-chain models with no way to verify strategy logic before execution

A yield platform where you deposit into vault strategies managed by approved strategists using private machine-learning models. It holds $40M in deposits with $15M in funding. Its C+ grade reflects serious opacity risk: the strategy logic runs off-chain and cannot be verified before your money is moved.

TVL

$1M

Mechanisms

7

Interactions

5

Value Grade

D-

Key Risks for Sommelier Users

1.

Strategy decisions are made by private algorithms running outside the blockchain. You cannot see or verify what the strategy will do before it moves your money. A bad model or a bad actor could drain the vault

2.

Vault rebalancing crosses a bridge between a Cosmos chain and Ethereum. If that bridge goes down during a market crash, your vault cannot be rebalanced in time and could take heavy losses

3.

If a strategist's private key is stolen, the attacker gains the ability to move vault funds into any whitelisted protocol. The validators may approve the move because the transaction looks normal

Top Risk Factors

  • Off-chain strategy computation is opaque and cannot be verified on-chain before execution
  • Cosmos-to-Ethereum bridge introduces cross-chain message integrity risk
  • Strategist trust model relies on governance approval but grants broad rebalancing authority

Risk Score Breakdown

Sommelier's highest risk area is Vitality Risk (10/10). Here's how each dimension contributes to the overall 43/100 score:

Mechanism Novelty8/15
Interaction Severity10/20
Oracle Surface5/10
Documentation Gaps3/10
Track Record3/15
Scale Exposure0/10
Regulatory Risk4/10
Vitality Risk10/10

Read the Full Sommelier Risk Report

This protocol has 2 collapse scenarios. 1 critical and 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.