> For the complete documentation index, see [llms.txt](https://docs.ribbon.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ribbon.finance/theta-vault/theta-vault/risk-profile.md).

# Risk profile

The primary risk for running the covered call strategy and put selling is that the vault may incur a weekly loss in the case where the call options sold by the vault expire in-the-money (meaning the price of collateral is above -calls- or below -puts- the strike price of the call options minted by the vault).