Automated Stop-Loss protection is a tool that depends on certain conditions to work correctly. There are some risks that may make the protection fail or work differently than expected. You, as the user of the feature, should be aware of these risks:
Keepers are centralized: Keepers are the actors that react to OSM price variations and start the vault closing process by sending a transaction to the network. If for any reason the Keepers fail, or are unable to send the transactions, your Automated Stop-Loss might not work as expected.
Gas costs can spike: In moments of high volatility, there are usually a high amount of transactions waiting to be mined. This congests the network, and the gas price needed for a transaction to be processed in the next block increases. If a Keeper sends a transaction with low gas price, it might be queued for some time until it is finally mined.
The exchange might face liquidity issues: To unlock your collateral in the event of protection triggering, the Automation Smart Contracts take a flash loan to cover your vault’s debt, and then swap part of your unlocked collateral to pay the flash loan back. These actions are routed through a decentralized exchange that might temporarily have liquidity issues either for the loan or for the swap. In these cases, the transaction can be more expensive than the predicted value, or fail completely.
The price oracle can fail: Maker OSM module delays the propagation of the collateral’s next price for one hour. This means that if a malicious actor tries to manipulate the next price, there is time to react to the attack and revert to a valid value. If, during an attack, the Keepers take the incorrect value as truth, they might be tricked into triggering the stop loss protection incorrectly, or not triggering it at all.
Smart Contracts related to the Automated Stop-loss protection could be paused: in case an issue is found, Oasis.app does have the power to disable the Automaton-related Smart Contracts. Please note that this would not impact your ability to redeem collateral or adjust your vault manually.