Understand the risks before you trade

Constituent prices (stocks, crypto, and even stablecoins) can fall, sometimes sharply and simultaneously. A fund's NAV can drop below your cost basis, and past performance never guarantees future results. Diversification within a basket reduces single-asset risk but does not eliminate loss.

Tokenized equities depend on third-party issuers (e.g. Backed, Ondo) maintaining 1:1 backing and honoring redemptions. If an issuer becomes insolvent, is sanctioned, halts redemptions, or de-lists a token, the corresponding constituent may lose value or become illiquid regardless of the underlying stock's price.

NAV is derived from on-chain Chainlink price oracles. If a feed becomes stale or reports an invalid price, the affected transaction (subscribe, redeem, or rebalance) reverts on-chain rather than executing at a mispriced NAV.

Baskets often hold stablecoins for the stable sleeve. A stablecoin can lose its peg to the US dollar due to reserve, regulatory, or liquidity events. A de-peg directly reduces the value of any fund holding it and can distort NAV until the peg recovers or the manager rebalances.

Cash subscriptions and redemptions route swaps through on-chain liquidity. Large orders, thin markets, or volatile conditions can move the execution price against you. Always review the quoted slippage and minimum-received amount before confirming; setting slippage too high exposes you to worse fills.

The vault, factory, and fee logic are on-chain smart contracts. Even audited code can contain bugs, and dependencies (token contracts, oracles, DEX routers) introduce further surface area. Use only audited, production deployments with meaningful funds; this build ships unaudited reference contracts by default.

A fund's market price tracks NAV through creation/redemption arbitrage, but the two can diverge (premium or discount) during stress or low liquidity. When a manager rebalances target weights, transitional trades and fees can create short-term tracking error versus the intended allocation.

Tokenized securities sit in an evolving legal landscape. Rules can change with little notice, funds holding equities may be geo-gated, and access in your jurisdiction may be restricted or withdrawn. You are responsible for the legality of your activity and for your own tax reporting.

Stackfi is non-custodial: you alone control your keys. If you lose your seed phrase, approve a malicious transaction, or fall for a phishing site, no one can recover your assets. Verify URLs, review every signature request, and treat your wallet security as your own responsibility.