You can lose your deposit
Anything you deposit, borrow or trade with on Dormo can lose some or all of its value. Only use money you can afford to lose.
Leverage and liquidation
Borrowing to trade multiplies gains and losses. If a position moves against you far enough, it can be liquidated automatically, and you can lose the collateral behind it. Prices can move faster than you can react, especially when markets are closed or thin.
Yield is not guaranteed
What your deposit earns depends on how much others borrow. Rates change all the time and can fall to zero. Past rates don’t predict future ones.
Stablecoin risk
USDG is issued by a third party. It aims to be worth one US dollar but could lose that peg, be frozen, or be affected by problems at its issuer or its reserves.
Tokenised stock risk
A tokenised stock is a token that tracks the price of a share. It is not the share itself and usually gives no shareholder rights. It depends on its issuer, on custody of the underlying shares and on price feeds, any of which can fail. Trading hours, liquidity and prices may differ from the stock market.
Smart contract and oracle risk
Dormo will run on smart contracts and price oracles on Solana. Code can have bugs even after review, and oracles can report wrong or delayed prices. Either can cause losses that nobody can reverse.
Admin and issuer powers
The wallet that deployed Dormo holds the program’s upgrade authority, so the program’s code can be changed. USDG’s issuer holds a permanent delegate over USDG, and xStock issuers can pause or freeze their tokens; any of them could affect balances held by the pool.
The pool is the other side of every trade
Depositors earn interest, but the pool also pays traders when they win and keeps their margin when they lose. A run of winning trades can reduce what every deposit is worth.
Network and wallet risk
Solana can slow down or stop. Transactions are final. If you lose your keys or sign a malicious transaction, your funds are gone. Dormo will never ask for your seed phrase.
Regulatory risk
The rules for stablecoins, tokenised securities and lending are changing. A change in law could limit or stop access to Dormo where you live, or affect the assets it uses. You are responsible for following the laws that apply to you, including tax.
Not advice
Nothing Dormo publishes is financial advice. If you’re unsure, talk to a qualified adviser.