Risks and limits
What the contracts enforce, what still depends on people and providers, and what the current product does not implement.
Owner, operator and payout-token risk
A proxy vault's owner can upgrade its implementation and change how funds, token balances and redemptions are handled. The rules described here apply to the current implementation and can change through an authorized upgrade.
The settlement operator chooses the payout-token address, amount and USDG recipient. The contract does not maintain a canonical stock-token allowlist, verify issuer backing, check custody arrangements, enforce a market-value exchange rate or impose a minimum economic settlement value.
Atomic delivery prevents USDG release when the settlement transaction fails. It does not protect against a successful settlement using the wrong token or unfavorable terms. Holders depend on the operator to arrange the correct acquisition and delivery.
Receiving an ERC-20 does not by itself establish legal ownership of shares, voting rights, dividend rights or redemption rights. Those depend on the actual token issuer and arrangements outside these contracts.
Price and stablecoin risk
The vault holds USDG rather than a hedged stock position. Price appreciation can reduce the number of stock tokens that the pool can acquire. Oracle price moves do not increase deposited assets.
Pre-tokenized stock pricing assumes one USDG equals one dollar. There is no USDG/USD depeg adjustment. Token freezes, transfer restrictions or issuer failures can also affect deposits or distributions.
The feed trusts Yahoo Finance and the authorized signer. Incorrect source data or a compromised authorized signer can produce an incorrect accepted price. Signature verification proves authorization and message integrity, not the market value itself.
Liquidity and timing
The product does not promise a listing date or guarantee that a suitable payout token will become available. There is no automatic timeout, holder withdrawal during Funding or holder-triggered cancellation. Funds can remain in Funding until an authorized operator or owner acts.
Pre-tokenized stocks can be transferred during Funding, but there is no built-in resale market or guaranteed buyer. Transfers freeze when distribution starts. Refunds use the pre-tokenized stock ratio, not original deposits.
The frozen pool does not grow when someone sends tokens to the vault after settlement or cancellation. The contracts expose no general asset-recovery function for such transfers.
Current implementation scope
The deployed flows cover signed prices, USDG funding, pre-tokenized stocks, operator-driven token delivery, global proportional claims and owner-triggered refunds. Automated broker execution, automatic listing detection, legal share registration and identity or eligibility verification are not implemented in these contracts.
Automated contract and browser tests are not an independent security audit. Do not read the UI, a successful test, an explorer link or a token's name as a guarantee of safety, insurance, backing or returns.
RPC or feed outages can stop the interface from loading or prevent new purchases until data is available. They do not automatically refund a vault. Inspect the transaction and market state before retrying any action.