DeFi protocols that adopt neutral strategies inevitably introduce off-chain counterparty risks. No matter how top-tier the auditing firms are or how comprehensive the audit reports may be, they’re basically useless. Take @Neutrl as an example—Spearbit and Sherlock, both top-tier auditing firms in the industry, are responsible for auditing. While they can ensure the maximum security of on-chain smart contracts, they have absolutely no control over the risks posed by off-chain OTC counterparties. Truly a case of 'man is the knife, and I am the fish.' Time to start shorting all neutral arbitrage DeFi protocols that introduce off-chain counterparty risks.