Risk Disclosure
What can go wrong, stated plainly. Read this before acquiring $CNPY or interacting with any Canopy Ratchet contract.
Digital assets and tokenized securities involve significant risk, including loss of principal, smart-contract risk, market risk, liquidity risk and issuer risk. Nothing on this website constitutes investment, legal, tax or financial advice.
Specific risks
The following are properties of how this protocol actually works rather than generic warnings. Each one describes a real behaviour of the contracts or of the assets they hold.
Backing is not a price floor
The Endowment is a claim on assets, not a commitment to any price. Nothing in the protocol buys CNPY at a floor, and no mechanism prevents the market price from falling below backing.
NAV and backing are onchain calculations and may change
Every figure shown is derived from pool prices and balances at a specific block. It changes as those inputs change, and a figure read a minute ago may no longer hold.
Redemption creates proportional claims, not guaranteed delivery
Retiring CNPY records a claim against the Endowment assets available at that moment, subject to contract rules and an exit fee. Settlement is a separate step, and an asset that cannot be transferred leaves the entitlement outstanding until it can be.
No yield, APY, profit or appreciation is guaranteed
The protocol makes no return of any kind. Capital reaching the Ratchet is spent on stock purchases or supply reduction, and neither is a promise of gain.
Smart contracts may contain bugs or fail externally
The contracts may contain defects, and they depend on external systems including Uniswap pools, the stock-token contracts and the chain itself. A failure in any of those can affect the protocol regardless of the correctness of its own code.
Stock-token issuers may retain pause, block, burn or upgrade powers
The tokenized equities held by the Endowment are issued by third parties. Those issuers may be able to pause transfers, block addresses, burn balances or upgrade the token contracts, and the protocol cannot prevent or reverse any of it.
Onchain pool prices can diverge from traditional-market prices
Assets are valued from the onchain pools they trade in, which are open at all times and are not the primary listing venue. Those prices can differ materially from the reference market, particularly when the reference market is closed.
Nothing here implies regulatory approval or endorsement
No statement on this website should be read as authorisation, registration, approval or endorsement by any regulator, exchange or issuer.
Tokenized equities
Robinhood Stock Tokens provide tokenized economic exposure to referenced assets and should not be presented as direct ownership of the underlying shares. Availability, transferability, redemption and issuer actions may be subject to third-party terms, restrictions and technical controls.
The Tokenized Assets Disclosure covers this in more detail, including the powers issuers retain over the tokens the Endowment holds.
No advice and no endorsement
Nothing on this website is investment, legal, tax or financial advice, and nothing on it should be read as authorisation, registration, approval or endorsement by any regulator, exchange or issuer. You are responsible for determining whether any interaction with these contracts is lawful and appropriate for you.
Verifying any of this yourself
Every figure published on this site is read from contracts on Robinhood Chain and is linked to a block explorer at the point it is shown. The contracts page lists every deployed address with its live runtime code hash, so what is running can be checked independently rather than taken on trust.