# Market Risks

### 1) Opportunity cost on stETH return in case none of the options end ITM&#x20;

This strategy takes 50% of the Lidos weekly return and invests in a strangle. In the worst-case scenario where none of the options that we buy are profitable, you end up losing 50% of the yield.&#x20;

### 2) Compared to holding ETH

Currently, there is no direct way to unstake your staked ETH. This feature will only be available **after the Shanghai upgrade,** planned to be in 2023-Q2. So, if you want to exit your position earlier, you will be exposed to stETH price on the secondary market. Depending on the staked version you are using, you will be exposed to the size of the liquidity, the trading venue, etc. That is one of the reasons why we picked Lido. We see them as the lower market to risk to earlier exit a position in case the user wants.

### 3) stETH de-peg

In 2022, much was said about a wider de-pegging event on the ETH-stETH pair.  According to Lido, stETH should not be considered to be pegged to ETH in any way. On the other hand, it is important to remember that stETH could enter a spiral selling situation if stETH price diverges too much from ETH.&#x20;


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