FUNDSLaunch protocol 1. What FUNDS is, and what it isn't
FUNDS is a stablecoin designed to hold a value of 1 USD. It is backed by digital assets whose prices move, held in one public wallet called the vault.
FUNDS is not a bank account, not money held in dollars and not a savings product. It does not pay interest or any other income.
2. collateral token price risk and partial redemptions
The vault holds collateral token only, so its value rises and falls with the collateral token price. If collateral token falls far enough, the vault holds less than 1 USD for each FUNDS in circulation.
When that happens, redemptions are paid first come, first served. If the vault can't cover your whole request, it pays what it has and sends the rest of your FUNDS back. You may not be able to redeem all of your FUNDS for 1 USD worth of collateral tokens, and the collateral token you receive may later fall in value.
3. The vault is run by an operator
The vault is a wallet controlled by the FUNDS operator, not a smart contract. The operator watches for incoming tokens and sends payouts.
When you mint, your collateral tokens is held in the vault by the operator. You rely on the operator to process requests correctly, keep the vault's keys secure and act honestly. If the operator fails, makes a mistake or is attacked, you could lose some or all of your value.
4. Pauses and changes to settings
Minting and redeeming pause on their own when the price is too old or moving too fast. The team can also pause either side at any time.
The team can change settings such as the fee, the price rules and the treasury wallet. A pause may stop you from minting or redeeming when you want to. [TBC: whether setting changes apply to requests already in progress]
5. Price source risk
FUNDS depends on a collateral token price in dollars from [TBC: price source at launch]. That price can be wrong, late or unavailable.
The safety stops reduce this risk but do not remove it. A wrong price could mean you receive less than you expected.
6. Wallet and network risks
You are responsible for your own wallet. If you lose your recovery phrase or private key, nobody can recover your tokens.
Blockchain transactions can't be reversed, so tokens sent to the wrong address are usually lost. Tokens sent straight to the vault without the app can't be matched automatically and wait for manual review.
The network itself can slow down or stop. Network fees are set by the network, not by FUNDS.
7. No insurance and no guarantee
FUNDS has no insurance of any kind. Nobody promises that FUNDS will hold 1 USD, that the vault will cover your redemption, or that the service will keep running.
[TBC: whether a security review or audit is planned or done. Do not mention one until it is confirmed in writing.]
8. Not investment advice
Nothing on this website or in the app is financial, investment, legal or tax advice. Decide for yourself whether FUNDS suits you, and ask an independent adviser if you are unsure. Only put in what you can afford to lose.