Risk Labels Explained

For every strategy listed at EarnPark users can find the risk label in the strategy description.
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This article explains what the label describes, what it deliberately does not describe, and how to use it when deciding where to deposit.

Until September 2026, strategies carried a one-word risk level — Low, Medium or High. We replaced that scale on 11 September, because a single word answered the wrong question: it tried to say how much risk a strategy carries, which no honest label can promise.
The new labels answer a better question — what kind of risk a strategy actually takes, so you can judge for yourself whether that kind is acceptable to you.
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Market-Neutral. The strategy is designed to reduce direct exposure to market direction — its result is not meant to depend on whether prices go up or down. What remains are the risks of the machinery itself: the algorithms and models the strategy relies on, execution, and the venues it operates on. A Market-Neutral label means "hedged against price direction" — it does not mean "protected against loss".
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On-Chain. The strategy operates through blockchain protocols. Its characteristic risks are smart-contract and protocol risks, and the mechanics of the networks it runs on — a category of risk that exists regardless of where the market moves.
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Cross-Venue. Delta-neutral positions spread across several exchanges and protocols. The characteristic risks come from operating in multiple places at once: transfers between venues, rate differences, and the possibility of a venue itself failing — rather than from market direction.
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Market-Exposed. The strategy includes material directional market exposure: its result can move with the market, in both directions. This is the only type where price direction itself is a primary driver of the outcome.

These labels describe each strategy's distinguishing risk characteristics — not a full list of its risks, and not a ranking of safety.
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Every label involves risk. A Market-Neutral or On-Chain label does not mean your capital is protected, and a Market-Exposed label does not mean higher returns.
​The labels and colours are not regulatory ratings and not loss limits: you may lose some or all of the assets allocated to any strategy, whatever its label.

One category of risk exists at every level and belongs to no single label: operational risk — errors in the algorithms, models and processes a strategy relies on. It is disclosed in each strategy's risk section, and it applies across the board.

Treat the label as the starting point, not the conclusion. Each strategy's page carries a full Key Risks section listing every factor that applies to that specific strategy — the label tells you the type of risk to expect; the risk section tells you the complete picture. We recommend reading both, together with the strategy's terms (withdrawal periods, payout schedule, fees), before you deposit.

Does Market-Neutral mean I can't lose money? No. It means the strategy's design does not take directional market risk. Its other risks — algorithmic, execution, venue — are real and are listed on the strategy page.

Why don't you just show a maximum possible loss? Because no strategy has a guaranteed maximum drawdown unless it is explicitly stated as a parameter of that strategy. Publishing a number that isn't guaranteed would be a promise we can't stand behind.

Where can I see everything that applies to my strategy? On the strategy's own page (Key Risks section), and in the platform's Risk Statement and Strategies Terms in the Legal Center.