# Non-Negotiables

### 1. Decentralization and Self-Custody Are Non-Negotiable

**Avoiding Centralized Intermediaries:** Relying on centralized exchanges (CEXs) or third-party market makers contradicts DeFi principles. H20 enables 100% self-custodial strategies where tokens never leave the project’s wallet, eliminating counterparty risk and aligning with crypto’s "not your keys, not your crypto" ethos.

**Transparency and Trustlessness:** On-chain strategies are immutable and verifiable, ensuring stakeholders can audit activities in real time. Passive management via opaque CEXs market-makers or bots lacks this transparency, eroding trust.

### 2. Mitigating Risks and Exploits

**MEV and Slippage:** Orders on DEXes are vulnerable to maximal extractable value (MEV) and frontrunning. H20’s on-chain strategies predefined in immutable smart contracts remove these risks by design.

**Programmable Risk Controls:** Strategies include auto-rebalancing and fast-exit triggers to achieve 100% custom-programmed active on-chain liquidity for the first time. For example, dynamic spread strategies automatically narrow or widen spreads based on market volatility.

### 3. Cost and Operational Efficiency

**Zero Gas, MEV, and Listing Fees:** Passive management often requires paying gas for frequent adjustments or high CEX listing fees. H20’s solver network covers gas costs, and its strategies run perpetually without recurring fees.

**Reduced Infrastructure Overhead:** Unlike running bots or servers, H20’s fully on-chain system requires no infrastructure maintenance, reducing operational risks and costs.


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