Your TVL (Total Value Locked) within Yield Yak is represented in USD and the price is obtained from CoinGecko’s price feed. The TVL is calculated by taking the farmers underlying assets in the farm and converting to the current price in USD. This means that if the price of the underlying assets fluctuates against the US Dollar then the value of your TVL will fluctuate also. Remember, however, that the auto-compounding is still adding LP tokens to your share of the farm. So, whilst your TVL represented in USD may have decreased in value, you are still increasing your LP tokens and getting the benefit of Yield Yak’s auto-compounding.
Yield Yak interacts with many external smart contracts. Yield Yak users take smart contract risk on Yield Yak contracts themselves, plus any external contracts Yield Yak interacts with.
Deposits for each Yield Yak farm are isolated, meaning that assets held in "risky" farms cannot affect assets held in "safe" farms.