Risks & disclosures

Market risks

• Equity price risk: stock tokens track volatile equities. A position holds them; their value moves with the market.
• Impermanent loss: pool rebalancing can make a position worth less than holding the assets. Fees may or may not cover the difference.
• Liquidity risk: in thin markets, exits can move price against you.

Issuer and peg risks

The underlying stock tokens are issued by third parties under their own terms. Those terms matter more than anything ZTOCKS controls:

• Issuer controls: issuers retain powers over their tokens, which can include freezing, suspending, or restricting transfers. An exercised freeze reaches every pool and basket that holds the token.
• Peg deviation: on-chain price can drift from the exchange price of the underlying equity, especially outside market hours when the issuer's mint and redeem arbitrage loop is closed to most participants.
• No shareholder rights: stock tokens confer economic exposure, not ownership, voting rights, or a claim on the company.

Technical risks

• Smart-contract risk: bugs happen. Contracts will be audited before launch; audits reduce risk but never remove it.
• Chain risk: Robinhood Chain is operated infrastructure with a sequencer and a transaction filter. Censorship or downtime at the chain level affects every protocol on it, including this one.
• Oracle and data risk: any feed the protocol consumes is an assumption that can fail.

Legal notes

This is a preview build: market data is live, but no protocol contracts are deployed yet. Details on this page will be updated alongside the launch contracts and audits.