What we charge, what can go wrong, and who controls what.

Products and fees

The desk fee can be changed by the owner up to a 10% cap written into the contract. The vault's profit fee has the same cap.

Risks

Market risk

Tokenised stock prices move with their markets and can fall a long way. LOOM has no floor price and can lose most or all of its value. Payouts in USDG do not protect you from a fall in the token.

Liquidity risk

Pools on Robinhood Chain can be thin. A large trade moves the price, and your minimum may not be met, in which case the trade reverts and you lose the gas. The vault pays withdrawals only from idle USDG, so a withdrawal can have to wait. Liquidity positions can lose value to price moves (impermanent loss), which lowers what the book earns and is worth.

Smart contract risk

The contracts were reviewed twice internally and tested against a copy of the live chain. Thirteen findings were fixed, each pinned by a test. No outside audit firm has reviewed them. Bugs can still exist and could lose funds. Uniswap, Pons and the stock tokens are third-party contracts we do not control.

Keeper trust

An automated keeper runs the book: it sells the tax, buys stock, opens and adds to positions, collects fees and triggers payouts. It can only spend principal and only in pools the owner has approved, but a compromised keeper could still trade at poor prices within its limits. Payouts depend on the keeper and the snapshot publisher doing their jobs on time.

Owner trust

• The LiquidityDesk owner can recover any token the desk holds. Until ownership sits behind a multisig and a timelock, that is a single point of trust over the whole book.
• The MarketDesk owner can change the desk fee within its cap and change the treasury. It cannot touch a trade in progress.
• The vault owner can write down principal, which lowers the share price, and chooses the strategy that draws depositors' USDG.
• The payout publisher decides which addresses are excluded as contracts and publishes each snapshot. An epoch can be cancelled.

Payout risk

Payouts come only from what the book earns. They can be small or zero, and past payouts say nothing about future ones. Buying just before a payout and selling after costs the tax on both trades.

Vault pricing

The vault's share price is cost plus realised profit, not a live market value. Losses inside positions appear only when written down, so the price can lag. Leaving while profit is still unlocking leaves that part to those who stay.

Tokenised stocks

A stock token is issued by a third party under its own terms. It is not the same as holding the share with a broker. Its issuer, transfer rules and availability can change, and it may not be available where you live.

Chain and legal risk

Robinhood Chain is a young Layer 2 network. Outages, reorganisations or bridge problems can delay or block transactions. The legal status of tokens that pay holders, and of tokenised stocks, is unsettled and differs by country. You are responsible for whether you may use this where you live.

Official contracts

Robinhood Chain, chain id 4663. These are the only addresses we publish. Anything else claiming to be LoomDesk is not us.

No investment advice

Nothing on this site is investment, legal or tax advice, a recommendation, or an offer to buy or sell any security. Numbers shown are read from the chain and may be delayed or wrong. You can lose money. Only use money you can afford to lose, and make your own decisions.