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Using ArcX involves smart-contract, vault, market, credit, oracle, cross-chain, and points-program risk. Read this page before depositing, trading, or claiming.

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No Guaranteed Rewards

CreditTokens are used for reward distribution, but no reward is promised. There is no guarantee that:
  • an underlying protocol conducts a TGE
  • an underlying protocol distributes rewards
  • a vault or its configured recipient receives rewards
  • a distribution contract is funded
  • CreditTokens convert to reward tokens at any fixed ratio
  • rewards have market value
CreditTokens are issued automatically after the market operator submits point weights on-chain. They are not points recorded by the underlying protocol and do not give holders a guaranteed direct claim against that protocol.

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Points Program Risk

Underlying points programs are controlled by their own protocols. They may change rules, adjust balances, apply multipliers, exclude accounts, claw back points, delay distributions, or end a program. Different vault or operator accounts can receive different treatment. A points-to-token conversion ratio for one account may differ from another account.

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Operator and Counterparty Risk

Some vaults depend on an operator, borrower, custodian, liquidity provider, or other counterparty. Where applicable, that party may default, underperform, misconfigure a strategy, receive fewer rewards than expected, fail to fund a distribution, or be delayed in returning assets. Review the dependencies of the specific vault before depositing or trading.

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Cross-Chain Risk

A vault can use more than one network. Cross-chain messages, token adapters, bridges, relayers, and source or destination chains can fail or be delayed. Sending to an unsupported network or incorrect recipient can cause permanent loss.

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Oracle Weight Risk

CreditToken issuance uses point weights submitted on-chain by the market operator. Incomplete or incorrect information can affect the point weight and how many CreditTokens are issued for a period.

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Smart Contract And Execution Risk

ArcX uses smart contracts for vault shares, ST, EPT, CreditTokens, order settlement, credit accounting, and reward distribution. Bugs, exploits, chain outages, cross-chain failures, or incorrect integrations can cause losses. ArcX also uses off-chain matching services to find candidate order matches. Settlement is checked on-chain against applicable price, APR, slippage, and order constraints, but a matching service can be unavailable or delayed.

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Liquidity And Pricing Risk

ST, EPT, and CreditTokens can trade with limited liquidity. Prices can move quickly, spreads can widen, and users may be unable to exit at the price they expect. EPT pricing depends on time remaining, expected CreditToken issuance, expected reward value, protocol risk, and liquidity. CreditToken prices are set directly by their markets. Market orders can fail, and limit orders can remain open or partially filled while funds stay escrowed.

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Regulatory And Access Risk

ArcX access may be restricted by jurisdiction, sanctions screening, or interface rules. Regulatory treatment of DeFi, points exposure, CreditTokens, and reward distributions can change. See Restricted Jurisdictions for the current ArcX interface restrictions. Users are responsible for understanding whether they may access ArcX and whether participating has tax, legal, or reporting consequences in their jurisdiction.

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No Deposit Insurance

ArcX positions are not bank deposits. They are not insured, protected, or guaranteed by any government, regulator, deposit insurance scheme, or investor compensation scheme.