Risks and disclaimers

This page lists what can go wrong. If you read only one page before forming an opinion about Regent, read this one. The terms that apply to this site are on the legal page.

Smart contract risk#

Once deployed, Regent's contracts carry risk of total loss. A bug in the hook, the escrow, the bond registry or any contract they depend on could lock or lose funds permanently. This applies to LP liquidity, to escrowed bids, to bonds and to staked tokens.

An independent security audit is required before any real deposits. That is a condition of the Roadmap. An audit reduces risk and does not remove it; audited contracts have failed before. The draft interfaces in Architecture and contracts are sketches. They have not been reviewed by anyone outside the project and must not be used as they are.

Regent also inherits the risks of what it is built on: Uniswap v4's PoolManager, the USDG token, the Stock Tokens themselves and the chain.

Hook-specific risk#

A Uniswap v4 hook is fixed when a pool is created and sits in the path of every swap and every liquidity change for the life of that pool. Two consequences follow.

• A faulty hook cannot be swapped out. If SeatHook has a bug, the pool cannot move to a fixed hook. LPs would have to withdraw and move to a new pool, if the bug still allows withdrawals. Whether any part of the system is upgradeable is not decided, and either answer carries risk: immutable code cannot be fixed, and upgradeable code can be changed against you.
• A hook can block the pool. A hook that reverts in beforeSwap stops all swaps. A hook that reverts on liquidity removal traps liquidity. The design keeps the hook small for this reason, but small is not the same as correct.

The hook also depends on other planned contracts at swap time, so a failure in the session clock or the rent stream could surface as a failed swap.

Oracle and market-status risk#

Seat duties depend on a Chainlink tokenized-equity feed and its market status. Duties only apply when the feed is fresh and the market is open, so a stale feed turns duties off and does not slash anyone. That is a deliberate limit, and it leaves real risks:

• A feed that is fresh but wrong during DAY could slash an honest regent, or fail to slash a negligent one.
• A feed that is often stale means duties rarely apply, and the regent holds rights with few obligations.
• Halt handling and the cross-check of the calendar rely on the market status signal. If it is late or wrong, a bell window can open at the wrong moment.
• Outside DAY there is no reference price and there are no duties at all.

Calendar risk#

Everything in Regent is keyed to the NYSE calendar: five sessions, daylight saving time, holidays and 13:00 early closes. A calendar error could sell a session that does not match the real market, open the bell window at the wrong time, or apply duties while the market is shut. The planned SessionClock is cross-checked with Chainlink market status and its holiday calendar is governed so that it can be corrected. Exchanges also close without notice, and a governed calendar reacts only as fast as governance does. See Sessions and the calendar.

Economic risk for LPs#

• Rent can be zero. Rent depends on auctions. If nobody bids, the seat is unsold, the pool falls back to a default fee and there is no rent for that session. This site promises no yield, rate or return, and none should be inferred from the simulator.
• Price risk and impermanent loss remain. Regent addresses one specific leak: the arbitrage loss at scheduled moments. An LP is still exposed to the stock's price and still suffers impermanent loss when it moves. Rent may be smaller than those losses.
• The regent sets the fee. Inside the bounds, the regent chooses the swap fee and collects it. In a sold session LPs are paid through rent, not through swap fees. A high fee can also push volume away from the pool.
• Thin early pools. Regent pools are new and must attract liquidity. A thin pool makes a cheap seat and low rent, which attracts little liquidity.
• Anti-JIT forfeiture. Liquidity removed less than 30 min after being added forfeits its accrued rent back to the pool. An LP who needs to exit fast loses that rent.
• Stablecoin and issuer risk. Rent is paid in USDG, and the other side of the pool is a tokenized stock. Both depend on their issuers.

See For LPs.

Economic risk for regents#

• The bid is sunk and upfront. The full amount is escrowed before the session starts and streams to LPs whatever happens next. If the gap is small, volume is low or the regent's systems fail, the money is gone. The only refund in the design is pro rata, for sequencer downtime.
• Slashing. During DAY, more than 60 s outside the band of ±max(current fee, 0.30%) around the oracle is a breach, and the $RGNT bond is slashed for every breach-second. Holding the band can require trading at a loss in a fast market.
• Winner's curse. The seat's value depends on a gap nobody knows in advance. The winner of an ascending auction is the bidder with the most optimistic estimate, and bidders who do not allow for that overpay on average.
• Operational risk. The rights are exercised through a registered executor contract. A compromised or broken executor wastes the seat, and during DAY can lead to slashing.
• Bond exposure. The bond is held in a token whose price can move against the regent while it is locked.

See For market makers.

Token risk#

The $RGNT token is not live. There is no contract address, no sale, no presale and no airdrop. This site will never show a price, a chart or a buy button.

• Impersonation and scam tokens. Because the name is public and the token is not, anyone can deploy a token called RGNT. Any such token, on any chain, is unrelated to this project, and so is anyone offering to sell it. The only announcement channel is x.com/Regent_rwa.
• It may never exist. Nothing on this site is a commitment to issue a token, or a statement about when.
• If it exists, it can lose all value. The planned roles are a slashable bond, a share of the protocol cut for stakers and governance. None of these is a claim on anything. What stakers receive depends on auctions and can be zero.
• Bond slashing. A bonded token is at risk by design. Slashed amounts go 50% to LPs, 10% to the caller of poke(), and 40% is burned.

See The $RGNT token.

Governance risk#

Stakers are planned to govern the fee bounds, the bell window length, the bond tiers and the holiday calendar. A mistaken or captured vote could raise fee caps, lengthen the bell window, set tiers that shut out competing bidders, or corrupt the calendar. Large regents have a direct interest in these settings. The voting process, quorums and timelocks are not designed yet, and until governance is handed over the team would hold that control. See Edge cases and attack surface.

Sequencer and L2 risk#

Robinhood Chain is an L2 whose sequencer orders transactions first come, first served, with blocks of ~100 ms. The design assumes that ordering holds. If the sequencer goes down, swaps and rent stop; the design refunds unstreamed rent to the regent pro rata, but an auction that was closing at that moment may settle badly. A sequencer that censors or reorders could defeat the auction, the bell window or the duty monitor. Bridges and chain upgrades add their own risks. Regent controls none of this.

Regulatory and eligibility risk#

Stock Tokens are not available to US persons. Rules for tokenized securities differ by jurisdiction and are changing. Providing liquidity, bidding for a seat, holding a bond or staking may be restricted or prohibited where you live, and regulation could end the availability of Stock Tokens, of this protocol or of this site. You are responsible for knowing and complying with the laws that apply to you. This site does not check that for you.

No affiliation#

Regent is an independent project. It is not affiliated with or endorsed by Robinhood, Uniswap, Chainlink, NYSE or any issuer. Tickers such as $NVDA are plain-text references to describe the design. They are not listings, offers or endorsements, and no third-party logo is used. Credit to published research on the Prior art page does not imply its authors' involvement.

Not advice#

Nothing on this site is financial, investment, legal or tax advice. It is not an offer or a solicitation to buy or sell any asset. Worked examples use illustrative numbers. The simulator shows how rules behave on simulated data and is not a forecast. Read the legal page.