Risks

CRUMB is experimental software. This page lists what can go wrong, in the simulation today and in the full protocol later. Nothing here is financial advice.

Smart contract risk

CrumbVault is small, tested and fuzzed, and it has not been audited by an independent firm. A bug could lead to a partial or total loss of deposited funds. Because the contract is immutable, a bug could not be patched; the mitigation would be to tell everyone to withdraw. Deposit only what you can afford to have in an unaudited contract.

Stablecoin and issuer risk

USDG is issued by Paxos. Like most regulated stablecoins, its contract can be upgraded by the issuer and individual addresses can be frozen. If the vault's address or yours were frozen, or if USDG lost its peg, CrumbVault could do nothing about it. The vault returns the same number of USDG you deposited, whatever a USDG is worth that day.

Network risk

Robinhood Chain is a recent Layer 2 with a centralised sequencer. Outages, reorganisations or bridge incidents could delay your transactions or affect the assets on the chain. During a sequencer outage you may be temporarily unable to withdraw.

Website and phishing risk

The most likely way to lose funds is a fake website or a fake token. Check the address bar. Official links are only those listed on official links and on @CrumbRH. The $CRUMB token is not launched: any address claiming to be it today is a scam. The app only ever requests an approval for the exact amount you deposit; if a site calling itself CRUMB asks for an unlimited approval, leave.

Yield variability (full protocol)

The 7% used in the simulation is illustrative. Real Morpho lending yield depends on borrowing demand and changes constantly. It can fall to a fraction of that figure. Low yield means small crumbs, not a loss of principal.

Lending risk (full protocol)

In the full protocol your principal is supplied to a Morpho vault. That exposes it to Morpho's smart contracts, to the decisions of the vault's curator, to the quality of borrowers' collateral, to oracle failures, and to liquidity: when utilisation is very high, withdrawals from a lending market can be delayed until borrowers repay. "Capital never touched" means CRUMB never spends it; it does not mean lending is risk-free.

Stock token availability and price (full protocol)

• Stock tokens are tokenised debt securities giving economic exposure to a share or ETF. They are not the share itself and carry issuer risk.
• A given ticker may be illiquid, paused for a corporate action, or delisted. Swaps can suffer slippage, especially outside market hours.
• Crumbs you have collected are stock exposure: their value goes up and down with the market.

Regional restrictions

Regulatory and project risk

Rules for stablecoins, tokenised securities and DeFi are changing quickly and could force changes to CRUMB or prevent the full protocol from launching in some places, or at all. The roadmap is a plan, not a commitment. CRUMB is an independent project and is not affiliated with, endorsed by or sponsored by Robinhood, Paxos or Morpho.