Moderate risk — well-audited liquidity management platform with established client base, offset by inherent risks of upgradeable vault architecture and active LP management.
Top Risks
1
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
2
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
3
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 Breakdown
Frequently Asked Questions
Is Arrakis Modular safe to use?
Arrakis Modular receives a B risk grade (27/100) from Hindenrank, where lower scores indicate lower risk. 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.
What are the main risks of using Arrakis Modular?
The key risks identified for Arrakis Modular are: (1) 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. (2) 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. (3) 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.
What is Arrakis Modular's risk score breakdown?
Arrakis Modular scores 27/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 5/20, Oracle Surface: 0/10, Documentation Gaps: 2/10, Track Record: 6/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 4/10. The highest risk area is Track Record at 6/15.
How does Arrakis Modular compare to other DeFi protocols?
Among 68 rated DeFi protocols on Hindenrank, Arrakis Modular ranks #7 by safety (lowest risk score = safest). Its 27/100 risk score and B grade place it among the safer DeFi protocols.
Has Arrakis Modular ever been hacked or exploited?
Arrakis Modular scores 6/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.