Part II · For Depositors
Risks, honestly
We'd rather lose a deposit than surprise a depositor. The full list:
| Risk | What it means | What softens it |
|---|---|---|
| Market risk | Stocks fall; your basket falls with them | Diversification, risk labels, drawdown brakes, but never eliminated |
| Strategy risk | A strategist's judgment can be wrong | Position caps, turnover limits, full transparency of every move |
| Issuer risk | The stock tokens are issued by a Robinhood-affiliated entity (RHJ); if that issuer failed, tokens could lose value regardless of the stocks | Disclosed on every basket; this is a structural property of tokenized stocks today |
| Smart-contract risk | Bugs in vault code | Independent audits, bug bounty, deliberately minimal code, capped protocol-wide exposure in early months |
| Liquidity risk | Thin markets can make large trades expensive | Basket capacity caps sized to real market depth; we close baskets to new money rather than degrade execution |
| Chain risk | Robinhood Chain could halt or censor | In-kind exit resumes with the chain; funds are never dependent on Velor's own infrastructure |
| Weekend gap risk | Stocks reprice at Monday open after weekend news | Weekend orders queue to Monday's window; the gap belongs to the market, not to a hidden counterparty |
What you will never see on Velor: projected returns, backtests presented as performance, or an APY in a headline. Live track records only.