Plain statements of what can go wrong. Read this page before depositing size.
eUSD-specific
Risk
Description
Liquidation
Stock collateral gaps overnight and on weekends while liquidation runs 24/7. Off-hours prices stay within a band of Chainlink's last answer, but a position near its threshold can be liquidated on a Monday open it never saw coming. Riskier groups liquidate at higher ratios (up to 144%).
Liquidator dependency
Liquidations rely on anyone holding eUSD at stressed moments; there is no pre-funded stability pool, and Own runs no liquidation bot. Thin participation slows the cleanup of bad positions.
Oracle and keeper
Mint, collateral withdrawal against debt and redemption need a price under an hour old. Off-hours that comes from Own's signer and keeper; if they stop, those actions wait for the next Chainlink update, while repay, close and liquidation keep working.
Peg depth
While debt ceilings are small, one large redemption or liquidation is a big share of the market. Ceilings rise as liquidity proves out.
Staking reserve
Staking APRs are fixed but paid from a reward reserve the treasury tops up. If it runs dry the APR is 0% until refilled, and above the cap it is diluted. Principal is unaffected.
LP rebate
The Fables rebate is paid in FABLES emissions and is a target, not a guarantee. Liquidity positions carry impermanent loss.
Redemption exposure
Healthy positions near the bottom of their collateral's sorted list can be partially redeemed at fair value, losing upside exposure on the seized portion.
eToken-specific
Risk
Description
Wrapper/issuer risk
Reserves hold tokenized stocks from regulated issuers. An issuer failure is insured by LP collateral, but a large simultaneous failure would test the cap math.
Maker liveness
Tier-one exits and tight spreads depend on live makers. The PSM and force-execution exist precisely for their absence, at oracle price rather than best price.
Market risk
eTokens track their underlying. Synthetic stock exposure carries full market risk.
Curated Funds
Risk
Description
Basket risk
A fund holds volatile tokens, many of them small. A token can lose most of its value or stop trading; the fund loses that token's weight.
Premium risk
NAV is the floor, not the price you paid. Buying or minting above NAV means the premium can shrink or vanish if demand fades, and redemption pays only NAV.
Yield is new tokens
Tier yield is paid in newly minted fund tokens. Its value comes from demand and from holders who don't stake; the more of the supply is staked, the more of the headline rate is dilution rather than new value. The Premium Pot exists only while people buy above NAV.
Oracle and keeper
NAV, the yield tier and minting rely on price feeds and Own's keeper (prices for tokens without Chainlink feeds, rebalancing, yield accrual, pool issuance). A stale feed pauses minting and yield; redemption needs no price and keeps working.
Locks
Launch tokens and direct mints are locked for a short period, and mint-at-NAV tokens are locked for good. Locked tokens can always be redeemed at NAV, but not sold in the pool.
Hookr pools
Fund pools trade on Uniswap v4 through Hookr's hook, a third-party contract Own does not control.
Admin trust
The fund admin (Own's Safe) can upgrade the fund contracts and change fees, yield tiers, locks and the basket while public curation is off. It cannot pause redemptions.
Smart contract
The fund contracts have been through multiple audit rounds, with reports published in the contracts repository. Audited but not risk-free.
System-wide
Risk
Description
Smart contract
Audited but not risk-free; the codebase includes upgradable modules (oracle verifier, eUSD managers, $MONEY fee collector) whose upgrades are admin-gated.
Oracle
Bands and freshness rules bound but cannot eliminate bad-price risk; a silent feed pauses new risk until resolved.
Governance keys
Parameters and listings are admin-set; for eUSD the admin is a 3-of-5 Safe. The admin cannot touch balances or block exits, but parameter misuse (caps, fees, pauses on new risk) is a real vector.
LP first-loss
LP collateral explicitly absorbs residual failures; LPs can lose principal in an issuer or maker failure scenario.
Regulatory
Synthetic equity exposure faces evolving regulation. Own is not available to US persons or other restricted jurisdictions.
