FAQ

Is Arrowfarm custodial?

No. Arrowfarm is designed to be non-custodial.

Your wallet signs your transactions, and Arrowfarm’s off-chain automation services are not intended to hold a key that can independently withdraw depositor assets.

Can I deposit a single token?

Yes, where supported by the vault.

If a vault requires two assets, Arrowfarm can convert part of a single-token deposit into the required pair before deploying the liquidity.

This conversion may involve swap fees, slippage and price impact.

Where is my liquidity deployed?

Arrowfarm deploys liquidity into external liquidity platforms such as Uniswap.

The exact protocol, pool, assets and strategy depend on the specific Arrowfarm vault.

How does Arrowfarm generate yield?

Yield comes from two sources:

1. trading fees generated by the underlying liquidity strategy; and
2. $ARROWFARM token incentives distributed to eligible vaults.

Why is my vault out of range?

A vault may remain out of range temporarily.

Repositioning has costs, so Arrowfarm does not move liquidity simply because the market crosses a boundary. The system can wait until repositioning is expected to be economically worthwhile.

Can my position lose money?

Yes.

Vaults remain exposed to risks including market movements, impermanent loss, smart-contract risk, liquidity risk and failures affecting underlying protocols.

What is impermanent loss?

Impermanent loss occurs when the prices of the assets in a liquidity pool move relative to each other.

As prices change, the composition of the liquidity position also changes, which means the position may end up worth less than simply holding the original assets.

When Does Arrowfarm Work Best?

Arrowfarm is designed for users who want exposure to liquidity-provider returns without actively managing concentrated liquidity positions themselves.

Vault performance generally benefits from:

• meaningful trading activity in the underlying pool;
• sufficient liquidity;
• periods where liquidity remains productively in range;
• trading fees that justify the costs of managing the position; and
• underlying assets that users are comfortable holding.

Arrowfarm may be less effective during sudden or extreme market movements, periods of low trading activity, or conditions where a position repeatedly moves out of range.

Does Arrowfarm guarantee APY?

No.

Any displayed APY or yield figure is an estimate and can change over time.

Vault yield can vary with trading volume, liquidity, fee tiers, market volatility, how long the position remains in range and the performance of the underlying strategy.

What percentage of $ARROWFARM emissions goes to users?

88% of newly emitted $ARROWFARM is allocated to eligible vault incentives.

The remaining 12% is allocated to the Development Treasury.

Is there a pre-mine or upfront team allocation?

No.

The current tokenomics specify no upfront allocation or pre-mine. Instead, $ARROWFARM enters circulation progressively through protocol emissions.

What is the maximum supply of $ARROWFARM?

The maximum supply is 80,638 $ARROWFARM.

Once that supply has been minted, emissions stop.

What is the buyback and burn?

Arrowfarm uses 100% of fees generated on the protocol to purchase $ARROWFARM and permanently remove those tokens from circulation.

Burned tokens are removed from circulation rather than retained by the protocol.

Are Arrowfarm vaults risk-free?

No.

Using Arrowfarm involves significant risk, including smart-contract risk, underlying protocol risk, market risk, impermanent loss, out-of-range risk, automation risk, oracle risk, liquidity risk, execution risk, stablecoin risk and regulatory risk.

You may lose some or all of the assets you deposit.

Where can I find the full legal terms?

See the Terms & Conditions and Risk Disclosure for the full legal terms, limitations and risk disclosures applicable to use of Arrowfarm.