Market Risks
Risks that come from the assets themselves.
- Basket assets can fall in value, reducing claim value directly
- Concentration amplifies single-asset drawdowns
- vPILE can trade at a persistent discount to claim value if arbitrage is uneconomic
- Liquidity for tokenized equities may be thin, raising acquisition and redemption costs
- Correlated drawdowns across equity and crypto legs remove the diversification benefit exactly when it is needed