Risks

These are disclosed because they are real. Some are ours to fix and some are not; the difference is stated rather than blurred.

A paused equity traps the whole LP position

If a paired token pauses, a liquidity provider cannot withdraw either leg until it unpauses. The healthy side is trapped too. There is a test for this, because Uniswap's PositionManager unlocks for itself and owns the pool position, so no third-party rescue contract can ever hold that delta.

We ship on PositionManager anyway. A pause is rare and recoverable — funds are locked, not lost — whereas replacing battle-tested periphery with our own custodian would put novel, unaudited code on the critical path for all liquidity, where a bug loses funds permanently. An emergency exit path is built and tested, but is not the default.

Issuer control

We neither issue nor custody the equity. Its issuer controls custody, redemption and backing, and can pause or upgrade the token. We treat these tokens as approved but untrusted: we never assume a transfer succeeds.

Corporate actions

The share multiplier drifts with dividends and jumps on splits. That destabilises absolute-price thresholds and pool initialisation pricing. Percentage and ratio metrics are far more durable; see Metrics.

Front-running

A tax change at a block boundary is visible and exploitable, as in any threshold-on-oracle design. Staleness is safe because the fallback is the expensive direction; the transition back to freshness is not. Bounded, not eliminated.

Oracle trust

Fundamentals come from a permissioned publisher. A compromised publisher could move fundamentals-driven rules within the 15% ceiling and nothing else. Price comes from Chainlink and does not depend on us at all.

Fundamentals refresh slowly

On the current data plan, fundamentals refresh far less often than quarterly. A rule written against revenue growth may be reacting to a figure that is many months old. Treat fundamentals rules as slow-moving structural conditions, not as timely signals.

Legal

Tokenized equities carry their issuer's own restrictions, including on US and UK persons. The protocol never custodies or issues the equity, and the issuer's restrictions govern. Nothing in these docs is investment advice.