Reference
Risks
Tokenized stocks on a young chain are useful and they are risky. These are the risks, in plain words. None of this is financial advice.
Issuer and wrapping risk
xStocks are certificates issued by a third party and backed by shares it holds, according to the issuer. If the issuer failed to honour them, or the backing were impaired, they could lose value regardless of the stock price. Wrapped xStocks add the wrapping contract on top: if it failed, the wrapped token could lose its link to the xStock.
Bridge risk
Assets reach Elysium from HyperEVM through a bridge. Bridges are a common point of failure: a bug, an exploit or an outage could delay transfers or cause a loss of funds.
Thin liquidity
Elysium pools on Volta are still small. Large orders move the price, the price you trade at can differ from the reference price on EQTY, and at times you may not be able to sell the amount you want at a fair price.
Price gaps outside market hours
Wrapped xStocks trade on-chain 24/7; the shares they track do not. After a weekend, a holiday or overnight news, the underlying price can open far from where it closed, and on-chain prices catch up at once.
Prices and oracles
Prices on EQTY are CoinGecko reference prices. They can be delayed or wrong. When lending launches, loans will be valued with oracle prices, which can also be wrong, stale or delayed — especially around market opens — in either direction.
Smart contract risk
Swaps run on Volta’s Uniswap v4 pools; the tokens and the bridge are smart contracts too. EQTY’s lending contracts are not deployed yet. They will be audited, and the reports published, before lending launches. Audits reduce risk; they do not remove it.
Lending is not live
EQTY lending has not launched. Every lending parameter on this site — LTVs, rates, fees, holder tiers — is planned and can change. Once it launches, borrowing against volatile collateral can end in liquidation. See Liquidation.
Network risk
Elysium is a new chain. It can experience congestion, outages or changes. You need HYPE on Elysium to pay for any transaction.
Stablecoin risk
USDC can lose its dollar peg. If it did, the value of anything priced in it would change.
Legal and tax
Tokenized stocks are not available to US persons or residents of restricted jurisdictions. Rules on tokenized securities and their tax treatment differ by country and change. You are responsible for the rules that apply to you.