CARROT of Time vaults are time-lock contracts.
Vaults are providing liquidity and collateral to the stock trades, the system is designed in a way that LONGs are paying SHORTs and vice versa, if semantics are changing into one direction and the
While staking is a good way to earn passive income, liquidity providers must excercise due diligence before locking their tokens in the vaults.
There is a potential risk and partial loss of Funds is possible.
the possibility for traders to go Long and Short (Short profits get paid by Long losses)#
Stock profit caps#
The possibility of a partial loss of fund is tiny, as traders as a whole tend to underperform the market rather than outperform. It should still be mentioned and considered.
In the future, different vaults will exist for different asset classes, and high-risk assets will be separated from their low-risk counterparts, allowing stakers more freedom in risk management.