Risk disclosure

These are the ways depositing into Velix can lose you money. They are stated plainly because a yield figure on its own is not an honest description of what a liquidity position does.

You are not holding pure stock exposure

The vault places its capital in a concentrated Uniswap v3 position in the stock's USDG pool. While that position is in range it holds part stock and part USDG. It is therefore not the same as holding the tokenized stock, and it will not track the stock one-for-one.

Loss-versus-rebalancing

A liquidity position systematically sells the asset that is rising and buys the one that is falling. That cost is real and continuous, and a large enough price move will exceed the fees collected. The stock-denominated value of your share can fall below what simply holding the stock would have given you, and can fall in absolute terms.

Velix reports the share price rather than a fee-only figure precisely so that this shows up instead of hiding behind a headline rate.

Yield is not guaranteed and is not fixed

The vault earns only when other people trade the pool. If that flow stops, it earns nothing. No rate shown anywhere on this site is promised, contracted, or forecast.

Smart contract risk

The contracts are unaudited. A defect could allow the loss of all deposited assets. The vault also depends on contracts written by others — the tokenized stock, USDG, and Uniswap v3 — and a failure in any of them can propagate.

Owner risk

The owner can choose which strategy the vault uses and move capital into it. A compromised or careless owner key is a route to loss. Redemption itself cannot be blocked by the owner.

Exit costs and available liquidity

Withdrawals within the vault's idle buffer settle exactly. Exiting beyond that unwinds part of the live position, which involves a swap and therefore slippage and pool fees, paid by the person exiting. In thin markets that cost can be significant.

Underlying asset risk

A tokenized stock is a claim on an issuer, not the share itself. Its value depends on that issuer honouring redemption, on the token remaining transferable, and on the pool remaining liquid. USDG is an upgradeable proxy: its issuer can change how it behaves.

Chain and market risk

Robinhood Chain can halt, reorganise, or become congested. Prices can gap while a position is out of range. Nothing here is insured, and there is no recourse if it fails.