Issuer and asset risk
- The xStock issuer holds a permanent delegate over every xStock account, including yours. It can freeze or move balances under its terms. Redemption depends on the issuer and its custodian.
- A tokenized stock is not a share held in a brokerage account. Corporate actions are handled as the issuer specifies.
- A stock whose market becomes too thin to buy or sell at size can be retired from the allowlist; its outstanding epochs still pay.
Revenue is uncertain
- Payouts are proportional to fee revenue. Low volume means low or zero payouts.
- Trades outside the launch venue and the protocol pools pay nothing to the treasury. More $DVR volume does not necessarily mean more revenue.
- Protocol-owned liquidity in the protocol’s own token is a long position. It can lose value, and impermanent loss is real.
Software and privileged roles
- Bugs in the programs, the keeper, this site, Raydium, Meteora, Jupiter, Pyth or the token contracts can cause loss.
- The keeper is trusted to compute allocations honestly. A compromised keeper can misallocate a future epoch; it cannot move funds out of program vaults or rewrite a published root.
- The upgrade authority can change the programs. It is intended to be a multisig; until then it is a single key held by the operator.
- An independent security review has not been completed.
Network and market conditions
- RPC outages, congestion and fee spikes can delay epochs and claims. A delayed epoch is published late, not skipped.
- Oracle staleness stops buys until fresh prices arrive; that is the guard working.
- Wallet connection alone does not establish anyone’s eligibility for a particular asset in a particular jurisdiction.