Yield & risks

Where yield comes from

When enabled for a circle, idle principal is supplied to Aave V3 on Monad, a lending market where suppliers earn a variable interest rate paid by borrowers. MonSave's adapter can only supply and withdraw — it can never borrow, use leverage, take flash loans, trade or bridge your funds.

What “variable APY” means

• The rate changes constantly with market supply and demand.
• The rate you see is the current rate at the displayed retrieval time — not a promise about tomorrow.
• Yield can be small, zero, or interrupted.
• MonSave never displays yield as fixed, guaranteed, insured or risk-free.

Principal and yield are always separate

Your dashboard and the contracts themselves account for principal and yield separately. Protocol fees apply only to realized positive yield, never to principal, are hard-capped at 10% in the contract code, and are visible before you approve a circle.

The risks, plainly

• Smart-contract risk. MonSave's contracts are open source and tested, but they have not yet completed an external audit. Bugs can cause loss of funds.
• Yield-protocol risk. Aave can pause a market, a reserve can be exhausted of withdrawal liquidity, and in extreme events supplied assets could be impaired.
• Stablecoin risk. Settlement tokens can lose their peg or freeze transfers.
• Liquidity risk. If recoverable assets ever fall below what members are owed, the circle freezes and every member gets an equal pro-rata redemption — the shortfall is shown, never hidden.
• Key risk. MonSave is non-custodial: if you lose access to your wallet, MonSave cannot recover it for you.

Naira estimates

Circles settle in a supported onchain token, not in naira. Where an NGN figure is shown it is labeled “Estimated NGN value”, uses a configured live rate source with a visible timestamp, and is never hardcoded. If live rate data is temporarily unavailable, we say so rather than showing a stale number as fresh.