Risks & security
What is actually guaranteed, what is not, and what can still go wrong. Written as we would want to read it.
What cannot happen
The liquidity cannot be withdrawn. Not by the creator, not by us, not by a compromised key. The locker has no function that moves the position — see Locked liquidity.
The supply cannot grow. Minted once, in the constructor. There is no mint function.
Your sells cannot be blocked. No branch of the token contract gates a transfer out of a wallet, in any block, under any condition. The anti-snipe window restricts buying only, and expires on a block number.
Your fees cannot be redirected. The creator address is written when the coin is locked and has no setter.
A bond cannot strand liquidity. The migration reverts unless essentially everything withdrawn is redeposited.
The keeper cannot take the backing. It trades through a delegate key that the venue lets open, close and resize positions, and nothing else — not withdraw, not transfer, not change approvals. See below.
A tracker cannot promise more leverage than its hedge can hold. The factory caps every tracker at the lower of 5× and the venue's own limit for the pair, on chain.
What you are exposed to
The tracker is leveraged, and leverage decays. A bonded coin's floor is a leveraged position — up to 5×. It loses ground on a round trip in the underlying, it pays funding and fees, and it can be liquidated. See NAV, decay & funding. This is the single most important thing on this page.
The venue. The perpetual position backing a tracker lives on Avantis, on Base. If that venue halts a pair, misprices it, or changes its rules, the backing behind every coin on that tracker is affected. Equities trade venue hours, so the position cannot be resized off-hours and a gap at the open is taken in full. A position is liquidated at roughly 90% loss of its collateral — at 5×, an 18% move against it from the averaged entry. We do not control the venue and cannot insure it.
The oracle and the keeper. NAV is posted on chain by a keeper. If it stalls, quotes that depend on NAV go stale; the contracts reject a stale post rather than acting on it, which fails closed but still means a coin can be temporarily unquotable. A keeper that stops also stops rebalancing, and a leveraged position that is not de-levered on the way down runs into the venue's liquidation threshold.
Concentration. Many coins can bond onto the same tracker, and they share one position. A bad day on one stock is a bad day for every coin behind it. The hedge book publishes exactly how concentrated the book is, because you should be able to see it.
Price impact on a thin coin. A fresh launch has very little behind it. Early buys move the price hard, and selling into that pool moves it hard the other way. This is not a hidden cost — the backing figure on every coin page is exactly how much is there.
The hedge account, and who holds which key
A tracker's vault is its own trader on the venue. Collateral goes from the vault to the venue when a position opens and comes back to the vault when it closes; no operator wallet ever holds it in transit.
The keeper is a delegate: a key the vault registers on the venue with setHedgeDelegate(keeper, expiry). The venue enforces what a delegate may do — open, close, resize and set stops on the vault's positions — and what it may not: withdraw or transfer USDC, change approvals, add or remove delegates. The delegate expires on its own on the date set.
How much the venue can pull from the vault is a plain ERC-20 allowance, set by syncHedgeAllowance() — anyone can call it — to the vault's idle USDC above its redeem-buffer floor. That allowance is the buffer policy: the keeper cannot commit more than it, because the venue cannot pull more than it.
The vault owner keeps two controls that need no cooperation from the keeper:
revokeHedgeDelegate— evicts the key from the account on the venue. Intents signed by that key stop working.clearHedgeAllowance— zeroes what the venue may pull. No new collateral can leave the vault.
Neither touches the oracle, and neither closes anything: positions already open stay open, under the venue's own liquidation rules, until a new delegate is registered and closes or manages them. That is the honest cost of the kill switch, and it is why the switch is paired with rotation rather than offered alone.
What the protocol owner can do
Point the site at a different launcher, list or delist the markets the launch form offers, and rotate, revoke or cap the keeper on a tracker's vault as above. None of this touches a coin that already exists: its pool, its lock, its split and its creator are fixed at launch and no owner action reaches them.
Verify rather than trust
Every claim here is a public call or a bytecode inspection. The addresses are in Architecture, with verified sources on Basescan. If a statement on this page and the chain disagree, the chain is right and we want to hear about it.
Audit status
The contracts have not been audited by a third party. They are tested, deployed unproxied, and the bytecode is what runs.