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Protocol Risks

Risks intrinsic to the design.

  • The flywheel requires activity. A token nobody trades funds nothing.
  • Wrapping is voluntary. If nobody wraps, the claim has no holders and the Stockpile has no purpose.
  • Non-rebalancing can concentrate the Stockpile in a single asset.
  • Fee parameters may be wrong. Too low starves the Stockpile; too high suppresses the activity that funds it.
  • The protocol has no revenue source independent of its own usage.