> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ix.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk disclosures

> The material risks of participating in IX RWA. Read before investing.

Participating in IX RWA carries risk. This page summarizes the material risks in plain terms. It is informational and is **not** investment, legal, or tax advice. For the structured treatment (likelihood, impact, mitigations), see the [Risk framework](/security/risk-framework).

<Warning>
  IX RWA is currently on **Base Sepolia testnet**. Testnet tokens and figures have **no monetary value**, are **simulated in settlement**, and are for evaluation only.
</Warning>

## Key risks

<AccordionGroup>
  <Accordion title="Technology & smart-contract risk" icon="code">
    Smart contracts can contain bugs. Contracts are UUPS-upgradeable, which introduces admin-key considerations until `UPGRADER_ROLE` and other privileged roles move to multisig / governance at the Phase-2 redeploy. A third-party audit is a prerequisite for mainnet.
  </Accordion>

  <Accordion title="Asset & operational risk" icon="server">
    Returns depend on real compute being rented and operators performing. Utilization, hardware depreciation, downtime, and operator default can reduce or eliminate revenue. Hardware depreciation lowers the oracle term of NAV, so **NAV-per-share can fall**.
  </Accordion>

  <Accordion title="Valuation & liquidity risk" icon="chart-line">
    NAV can rise and fall, and shares are priced at NAV. You can redeem at NAV, but only up to `availableCash` (vault balance minus the reserve floor) is paid instantly; larger exits **queue FIFO** and are paid as the vault and smoothing reserve refill. A secondary AMM market is not yet live, so instant exit is not guaranteed.
  </Accordion>

  <Accordion title="Oracle risk" icon="satellite-dish">
    NAV depends on the `LiveDataNAVOracle` behind an `INAVOracle` seam. On testnet it is fed from live market data and settled in test tokens. Guards limit the damage a bad feed can do: a single update can't move a cohort by more than `maxBps`, and a stale feed (`now − lastUpdate > maxAge`) **pauses deposits/redeems** until refreshed. Every NAV move must pass through the [Attestor Registry](/protocol/proof-of-reserve) with an evidence hash. Residual risk remains: an attested value can be wrong within bounds, and a divergent asset is only removed once quarantined.
  </Accordion>

  <Accordion title="Fee & dilution risk" icon="percent">
    Entry, exit, and a streaming management fee apply (testnet `0%` / `0.10%` / `1%/yr`). The management fee dilutes holders continuously by minting dust shares; parameters are admin-settable (capped at 100%) and can change.
  </Accordion>

  <Accordion title="Simulated figures are not guarantees" icon="chart-simple">
    Yield, APY, and NAV shown in the app are **simulated in settlement on testnet** and, at mainnet, model-based estimates. They are not promises of return; realized results may differ materially.
  </Accordion>

  <Accordion title="Regulatory risk" icon="scale-balanced">
    The regulatory treatment of tokenized real-world assets is evolving and varies by jurisdiction. Eligibility rules may apply at mainnet.
  </Accordion>

  <Accordion title="Custody & key risk" icon="key">
    IX RWA is non-custodial. If you lose access to your wallet, IX RWA cannot recover your funds or ownership.
  </Accordion>
</AccordionGroup>

## No advice

Nothing in this documentation is an offer, solicitation, or recommendation. Do your own research and consult qualified professionals before making financial decisions.