Risk disclosure

01You can lose everything you commit

Buying crypto assets and tokenized assets is highly risky. Prices can fall to zero, liquidity can disappear and software can fail. Only commit what you can afford to lose entirely. This disclosure is not exhaustive: it describes the main risks we know of, in plain terms, so you can decide whether NoFomo is appropriate for you. It forms part of our Terms of Use.

02Market and volatility risk

Newly launched tokens are extremely volatile and many lose most or all of their value quickly. Stock tokens move with their underlying markets and with their own onchain liquidity, which can be thin. A uniform clearing price means everyone in a cluster pays the same price; it does not mean the price is good, fair relative to any outside market, or that it will hold after the cluster clears. Past activity shown on the Interface says nothing about future results.

03Robinhood Stock Tokens

Stock markets on the Interface trade Robinhood Stock Tokens, issued by Robinhood Assets (Jersey) Limited. Before you buy one, understand that:

• A token is not the share. It is a tokenised debt security giving economic exposure only. You get no shareholder rights and no legal or beneficial rights in, or against, the underlying company. Your exposure depends on the issuer: its solvency, its rules and its continued operation.
• The issuer can intervene. The token contracts are upgradeable, and the issuer can pause trading (for one token or all of them), block wallets so their tokens cannot move, and burn tokens. This includes tokens the clearing contract holds between a clear and your claim. If your wallet is blocked or the token is paused when you claim, your ETH refund is still paid and the tokens are held for you until they can be transferred, which may be never.
• Corporate actions change the multiplier. Splits and distributions change how many shares one token represents (the ERC-8056 multiplier). Prices and amounts onchain are per raw token. The venue refuses to trade a stock when a multiplier change takes effect within 2 hours, so a cluster open at that time settles as a full refund.
• Prices are onchain prices. The price is set by the token’s pool on Robinhood Chain, not by the stock exchange, and can differ from the underlying market, especially when that market is closed. Most pools trade against USDG, so a purchase also moves the USDG/WETH price, and USD figures shown are converted at that onchain rate.
• Restricted. Stock Tokens are not offered to US Persons and are prohibited or restricted in a number of jurisdictions (see the Terms). IP-based blocking is a control, not a guarantee; eligibility is your responsibility.

04Liquidity, bonding curves and price impact

The protocol buys through two kinds of venue: pools that trade Robinhood Stock Tokens (concentrated liquidity, often through a second USDG/WETH pool) and Pons launch curves (automated bonding curves). Every purchase moves the price up; the bigger a cluster’s purchase relative to the liquidity, the higher the uniform price. Venue fees (a pool’s fee tier, or a curve’s base fee and creator tax) are charged on top of the 10 bps protocol fee.

Batching changes who pays what, not the total. Against the same curve, the same total demand costs about the same whether it arrives in one purchase or many; a cluster spreads that cost evenly instead of letting the first buyer pay least and the last pay most. Do not expect batching to reduce your costs compared with buying alone.

When a curve “graduates” to a different liquidity pool, a stock is paused, or a venue stops quoting, the adapter refuses to trade. A cluster on that market can then only settle 15 minutes after its window closes, as a full refund every participant claims.

05Ceilings, proration and partial fills

Every cluster has an impact ceiling (between 0.1% and 20%) set when it opens. At clearing, the contract asks the venue how much ETH it can absorb without moving the price beyond that ceiling. If total demand is larger, every participant is filled by the same fraction and the rest of their escrow is refunded. You may therefore receive much less than you intended to buy.

The ceiling is measured from the venue’s price at the moment the cluster clears. On top, a price guard compares the fill with the best quote seen while the cluster was open: the fill must be within the ceiling plus 3% of it. So if the price rose between your join and the clear, you can pay up to the ceiling plus 3% more than the best price seen while it was open. If the market moved further, the clear reverts; it can be retried when prices come back, and 15 minutes after close anyone can settle the cluster as a full refund. In a fast market you may therefore wait up to that long and get only your ETH back.

06Clearing windows, timing and ordering

• Clusters have a window of 10 seconds to 1 hour. You can leave and get your escrow back only while the window is open. After it closes, your ETH stays in the contract until someone clears the cluster and you claim.
• Clearing is permissionless: anyone can send the clear transaction once the window has closed. We usually do, but nothing guarantees when it happens. Prices can move between the close and the clear.
• Transactions on a public chain can be observed before they are included in a block. Other parties may trade on the same venue just before or after a clear (sometimes called front-running or MEV). The ceiling and the price guard bound what that can cost you, but the guard’s 3% slack is room that someone moving the price first can still use.
• Allocations are not sent automatically. You (or your agent) must call claim to receive tokens and refunds, although anyone may push your claim to you. Tiny rounding remainders (a few wei) stay in the contract.

07Smart-contract risk and unaudited code

The contracts have had an internal review only; no independent audit has been completed. That review found a critical issue in an earlier deployment, which was retired before it held any funds (see Security). Bugs, design errors or unexpected interactions with venues could still lock or lose funds.

The clearing and mandate contracts have no owner, no admin keys, no pause switch and no upgrade mechanism. The venue router, the price guard and the fee recipient are fixed at deployment. That means nobody, including us, can move your escrow, change the rules of a deployed contract or freeze it. It also means that if a bug is found, it cannot be patched in place and funds cannot be rescued by an administrator; the fix is a new deployment that users choose to move to.

The protocol depends on third-party contracts (the venues and the tokens they issue) that we did not write and cannot change. Those contracts may have their own owners, admin powers, fees or bugs.

08AI agent and automation risk

Agents can act quickly, repeatedly and wrongly. They can misunderstand instructions, be manipulated by content they read (prompt injection), use stale data, or keep trading after you stop watching. You are responsible for what they do.

• A mandate’s per-execution cap, daily cap, ceiling, expiry and, if you set them, its market binding and maximum spot price are enforced by the vault contract. Within those limits, the originator you name can spend your armed balance without further approval. Without a market binding or a price cap, you are trusting the originator’s judgment about where and at what price to buy. Revoking returns the unspent balance immediately but cannot reverse past executions.
• Limits set in the local MCP signer or any other agent software are enforced by that software only and can be bypassed by anyone who controls the machine or the key.
• Keep agent keys separate from your main wallet and fund them with small amounts.

09Data, indexer and interface errors

The Interface, the API and the MCP tools show data derived from the chain by our indexer. It can be delayed, incomplete or wrong, and estimates (such as prices, capacity or “last in a race” comparisons) are calculations, not guarantees. The blockchain is the source of truth: check transactions on the block explorer before relying on them. Animations that illustrate how clustering works (such as the homepage field) are not market data.

10Wallets and key management

Whoever has your private key or seed phrase controls your funds. Lost keys cannot be recovered by us or anyone else. Phishing sites, malicious browser extensions and fake support contacts are common: we will never ask for your seed phrase, and the only addresses we deploy are listed on the security page.

11Network and infrastructure risk

Robinhood Chain is operated by third parties. It may experience congestion, outages, reorganisations, sequencer downtime, fee spikes or changes to its rules, any of which can delay or prevent your transactions. RPC providers and wallet relays can fail too.

12Regulatory and tax risk

Laws on crypto assets, tokenized securities, automated trading and AI are changing quickly and differ between countries. New rules could restrict or end your access to the Interface or to particular assets, or change their value. Transactions may have tax consequences for you. You are responsible for complying with the laws that apply to you.

13No affiliation, no advice

NoFomo is independent and not affiliated with FOMO Labs Inc. (fomo.family), Pons, Robinhood, or Robinhood Assets (Jersey) Limited. Nothing on the Interface is investment advice or a recommendation. If you are unsure whether this is suitable for you, get independent professional advice.