Risks
Read this before depositing. Nothing on Chop is guaranteed.
- Smart contracts. Chop's contracts are unaudited. Bugs can lose funds. Don't deposit money you can't afford to lose.
- Upgradeable code. The upgrade-key holder can replace the code behind every log and controls the factory used for future logs. These powers may later move to a multisig or be removed permanently. See Who can change what.
- Impermanent loss. Farming can leave you with less than holding. See Farming.
- Fees. Wrapping and unwrapping each cost about 1%. Short round trips lose money.
- Rewards depend on activity. Quiet markets mean small rewards. What's been paid so far doesn't predict what will be paid.
- $CHOP price. At launch, rewards are paid in $CHOP, which can fall in value.
- $CHOP concentration. Every log's pool is half $CHOP. A sharp fall in $CHOP lowers the value of every farmer's position and rewards at the same time.
- Log token price. A log token can trade below its backing in its pool, especially when liquidity is thin. You can always unwrap at backing, minus the unwrap fee.
- The chain. Robinhood runs the sequencer that orders transactions on Robinhood Chain. It could delay or refuse them.
- Tokenized stocks. Logs that wrap tokenized stocks depend on the issuer's transfer rules.