Risk Disclosure

Market risk

• The tokens in a basket are volatile. A basket can lose most or all of its value, quickly, and memecoins can do it in hours.
• A constituent can go to zero and stays in the basket as dead weight.
• Past performance of a basket or a curator says nothing about the future. Rankings are computed from pool prices, and a thin pool can be pushed: in a test run on Oct 7, 2026, holding a buy of about 3,300 USD in one meme's pool made a basket half in that meme show +45% with nothing else moving, and undoing the buy cost about 640 USD. A curator can also make a basket look like a top performer without moving any price: tokens of one of its constituents sent to the basket are harvested into it like any payout, so in a fork test on Oct 12, 2026 a basket seeded with 15 USD that received 1,500 USD of one of its own tokens showed about +10,000% since launch, and the curator got 99% of it back by withdrawing. Top performers ranks baskets by their return since launch, whatever their size. Anything sent to a basket counts as income, so a curator can lift a small basket's return by sending it tokens: a ranking is not a recommendation.

How baskets behave

• No rebalancing. Weights drift with prices. A basket that started 50/50 can end up 95/5.
• Thin liquidity. Buying and selling to ETH goes through DEX pools. Large orders move prices and can be rejected. If a pool is empty, you exit in tokens, not in ETH. When two tokens of a basket trade through the same thin pool, the second one trades at a worse price than the first; the app simulates the whole trade before you sign, so the amounts and minimums you see already include it. If part of what you pay cannot go into the basket, it comes back to you as loose tokens after the fee, and the app shows how much before you sign. The exception is dust: an extra amount under 0.2% of what was bought of a token (a governance setting, capped at 1%) that is not clearly worth more than the gas to send it stays in the router, and governance can sweep it to the treasury.
• Tickers repeat. Pons does not reserve names, so a meme can carry the same symbol as a stock, and even the same name. When you pick tokens for a basket, the list and the search results are ordered by market cap, not by kind, so a meme can come up above the stock with the same ticker. The token picker and the basket page show each token's address and price next to its symbol; the weights you set, a withdrawal in tokens and error messages show only the symbol. Check the address before you choose.
• Names are not unique. Anyone can create a basket with any name and ticker, including those of another basket. The basket page shows its curator and marks featured baskets: check them before buying.
• Pool fees and creator taxes. On top of BASKT's fees, every buy and sell pays each pool's own fee. For a Pons meme that is Pons' fee plus a creator tax chosen at launch, up to 10% (11% in total at most under Pons' current settings), paid to Pons and to the creator, not to BASKT. Pons could change its settings. The 11% cap on fees covers BASKT's fees only.
• Deposit cap. Each basket can only grow to a multiple of its seed (20 times by default) until governance raises the cap. Above it, buys fail. Selling and withdrawing are never capped.
• Broken constituents. A token whose transfers stop working is skipped on withdrawal and you receive the rest. That part is set aside in your name, and you can claim it later if the token moves again. If it never moves again, that part is lost. Until then the basket's value still counts it at its pool price. Only you can claim it and nobody can redirect it: if the address the issuer blocked is yours, it waits until you are unblocked. Before you sign, the app shows which token would be set aside, so you can choose not to withdraw. Calling the vault directly, you can also set minimums so that the withdrawal fails instead.
• Tokens that pay their holders. Payments that reach a basket count toward the value of a share only once they are harvested, which swaps them through the same pools, paying their fees, and can convert at a worse price in a thin pool. Only wallets that governance authorizes and that we run can harvest: a bot that checks every basket every hour (with more than 100 baskets, 100 per hour in turn) and harvests the payouts in each token once they are worth more than 10 USD (by default) and clearly more than the gas it costs, and a backup wallet. Curators and holders cannot. While nothing is harvested, the payments stay in the basket and belong to its holders, but governance can announce publicly that it will move unharvested payments to the protocol treasury, and if nobody harvests them in the following 30 days, it can move them during the next 7 days, up to the amount there was when it announced. An announcement can also name one token of the basket that cannot be bought: then only that token's share can move, and only a harvest that buys that token cancels it, not the regular harvests of the other tokens. Because waiting payouts are not yet in the share price, someone who enters right before a harvest and leaves right after takes part of them; after fees that only pays when the waiting payouts are above about 1% of the basket with no curator fee, about 1.6% with a 0.30% curator fee and more with a higher one; for the curator, whose own fee comes back to them, it stays at about 1%. The protocol takes no harvest fee at launch; governance can turn one on through the timelock, at most 1% of the payouts a harvest takes in.
• Tokens that charge a fee on transfer are not supported. Before a token whose code is not checked against a reviewed contract can be listed, the lister sends a small amount that the protocol passes on to a burn address, and the token is refused if less arrives than was sent. If a token starts charging after it is listed (a tokenized stock its issuer upgrades, for example), new deposits and buying or selling through the router fail for every basket holding it; withdrawing the underlying tokens keeps working, minus what the token itself charges on the way out; if it charges the basket on top of what it sends, that charge comes out of what is left for those who withdraw later.
• Curator fees. Up to 10% per side, set by each curator and shown on every basket.

Tokenized stocks

• A tokenized stock is a token, not a share. It gives you no shareholding, no voting rights and no dividend entitlement from us, and no claim against the issuer or the company through us.
• The issuer keeps control of its token. Robinhood can pause transfers, block addresses, and mint and burn supply on the tokens it issues. If that happens, buying or selling a basket holding that token can fail until it is lifted. It is outside our control and it is not a pause by us: withdrawing your underlying tokens never pauses on our side. If the issuer burns tokens a basket holds, the loss is shared by all of that basket's holders in proportion to their shares, whatever the order in which they withdraw.
• The price is the pool's, not the stock market's. The protocol reads the token's price from a DEX pool on chain. It can differ from the price of the underlying stock, and it moves at hours when the stock market is closed.
• Liquidity is checked once. A stock must meet a minimum pool depth when it is listed. Nothing on chain re-measures it: we watch the pools, but the contracts do not act on it, and the pool can thin out afterwards.
• Your jurisdiction. That a token is tradable through the protocol does not mean you may lawfully hold it where you live.

Technology risk

• Smart-contract risk. The contracts went through internal reviews and tests. They have not been audited by a third party. Code can have bugs, and bugs can cause losses.
• Governance can replace the swap route. After a public 48 hour timelock, governance can replace the route the router uses to swap. A hostile route could keep part of every buy and sell made through the router; withdrawing the underlying tokens never uses it. The app values every buy and sell at the oracle price before you sign, warns when the cost beyond the fees is higher than the routes of that basket's tokens can legitimately cost, and refuses to sign when it is higher than that plus your slippage tolerance.
• Chain and third-party risk. Robinhood Chain, Pons, Uniswap pools, oracles and wallets are outside our control and can fail or change. Robinhood Chain's operator can refuse transactions that involve an address it restricts, including transactions forced in from outside its sequencer. If it restricts a basket's curator, one of its tokens or the basket itself, withdrawing from that basket can be impossible until the restriction is lifted; if it restricts the protocol's treasury, which every exit pays a fee to, withdrawing from every basket can be. Your tokens stay in the basket and are not lost.
• The issuer of USDG. Paxos can pause USDG, freeze addresses and upgrade the token. Buying or selling a basket goes through a WETH/USDG pool for every token priced against USDG, most stocks among them, so if Paxos pauses USDG or freezes that pool, our swap route or the Uniswap v4 contract that holds the pools' tokens, buying and selling those baskets can fail until it is lifted. Withdrawing your underlying tokens does not go through that pool.
• Irreversible transactions. A transaction sent to the wrong address or signed by mistake cannot be undone.

$BSKT

• $BSKT does not exist yet. When it launches on Pons, it will be a memecoin with the same risks as any other.
• Genesis Points are not a token. They have no monetary value, cannot be transferred, and carry no promise that they will ever be converted into anything. 10% of the supply is set aside for the Genesis community. That is the size of the pool, not a promise of an amount to any wallet: how it is split between wallets is set by rules we publish before the distribution. See the Genesis campaign terms.
• Buyback and burn: 80% of protocol revenue, and it does not start on day one. Until $BSKT exists there is nothing to buy or burn, so protocol fees go to a multisig treasury. That treasury funds the $BSKT launch and the purchase of the 10% of supply set aside for Genesis participants, bought at the launch as the launcher's initial buy on the Pons curve, and if revenue falls short we pay the rest ourselves, so the 10% does not depend on how much the protocol earns. What any single wallet receives is a separate question and is covered by the Genesis campaign terms. When $BSKT launches, the treasury becomes a contract that splits the fees collected in ETH and WETH 80% to buying $BSKT and burning it and 20% to operations, with a floor in the code that stops governance taking the buyback share below 20%. Anything else that reaches the treasury goes to operations. The buyback can only spend what the protocol actually earns: with little activity, it buys little. Anyone can trigger a split or a buyback; neither is automatic. Governance can change the split within that floor and it can be paused, and burning tokens does not guarantee any price.
• Holding $BSKT gives no ownership, no share of revenue and no rights over the project.

Scams

Fake sites, tokens and accounts appear on day one. Only trust the official links. We will never message you first or ask for your seed phrase or for funds.