Legal
Risk disclosure
Deposits can lose value, and credits are never guaranteed. Read these risks before you deposit.
- Last updated
- Status
- Draft for legal review
Draft for legal review, not final. This text has not been approved and may change before launch.
Risks
- Smart contract
- A bug in Drip's vault or the lending protocol could cause loss of funds. Drip's contracts have not been audited yet. Audits lower this risk but cannot remove it.
- Stablecoin
- If USDG loses its dollar peg or its issuer fails, deposits could lose value.
- Lending protocol
- Bad debt in a Morpho market, price-feed failures or poor risk settings by the vault's curator could reduce vault assets.
- Liquidity
- If the Morpho markets the vault lends to are fully borrowed, withdrawals can be delayed until cash returns.
- Variable yield
- Rates move with borrower demand and can fall close to zero, so credits can slow down.
- Credits
- Credits are an off-chain balance. If Drip stops operating, unspent credits could be lost.
- Model prices
- If Anthropic raises the price of Claude, the same credits buy less.
- Single chain
- Drip runs only on Robinhood Chain. A network outage would pause deposits, withdrawals and harvests.
- Regulatory
- Rules for stablecoins, DeFi and tokens are unclear or restrictive in many countries and can change.
- Operational
- A keeper failure or a model provider outage can disrupt service.
- Agent spending (from Phase 2)
- Once agent keys and wallets arrive, a faulty or compromised agent can spend up to its limits before you notice. Keep limits tight and alerts on.
- DRIP token (from Phase 3)
- Once DRIP launches, its price can swing sharply. If it falls, you need more DRIP to stay above $100 and keep transfers enabled.
How Drip reduces these risks is explained on the security page and in the whitepaper’s Risks chapter.
Disclaimer
Drip is not an offer of any token or investment, and nothing here is financial, legal or tax advice. All figures are estimates and are not guaranteed. DeFi carries a risk of total loss. Drip is not affiliated with Robinhood, Pons, any lending protocol or any model provider.