Risks & assumptions
What the model demonstrates, and what it cannot establish.
The current application moves no real funds. A future live protocol would expose participants to market, liquidity, issuer, integration and contract risks. Working arithmetic does not resolve those risks.
Market and liquidity
- FOLD can trade below the value shown for a reserve claim.
- ETH and stock exposure can lose value at the same time.
- LP returns depend on changing inventory and fee volume; they can underperform holding the assets.
- Thin markets can produce large price impact or make an exit impractical.
- A retained redemption fee does not establish a guaranteed dollar floor.
Revenue and dependency risk
The proposed payout loop depends on actual receipts. Fee volumes may be low, integrations may fail, and operators may not sweep funds from external platforms. Unswept or unclaimed amounts are not cash in the treasury.
The browser’s daily fee injection deliberately removes this uncertainty to make a scenario testable. It is not an estimate of sustainable revenue.
Stock-token assumptions
A live issuer may restrict holders, transfers or redemption. Custody failures, corporate actions, valuation gaps and underlying market closures can affect token value and availability. No issuer, venue or dividend passthrough has been verified for FOLD.
Contracts and launch
The reference contracts are not independently audited or deployed by FOLD. Immutability removes certain administrative powers but also prevents patching defects in place. External tokens need fixed supply and compatible transfers; partial compatibility checks do not prove safety.
Allocation, initial backing, launch integration and ownership of liquidity must be reviewed and published. A source file, a test suite or a wallet connection is not proof that this has happened.
Limits of the current app
Browser balances are local data, not blockchain state. Prices and external stock liquidity are assumptions. Clearing storage or a failed save can remove a scenario. Exports contain simulated receipts, not investment statements or evidence of earnings.