Known Risks

Contract risk

• Unaudited code. No third-party audit has been performed. Bugs may exist in any contract.
• No upgrade path. A bug in a launched market cannot be patched. That is the same property that stops an admin rewriting your rules.
• Uniswap v4 integration risk. TAPEZERO depends on v4 core, its hook mechanism, the unlock/settle accounting model and ERC-6909 claims. A fault in any of them affects TAPEZERO markets.
• Hook address mining. The hook must live at an address encoding specific permission bits. A deployment that mined incorrectly would be rejected by the factory, but verifying the deployed hook address is still worth doing yourself.

Quote and oracle risk

• Oracle risk. A wrong-but-fresh answer produces a wrong opening price. The guard checks freshness and sanity, not truth.
• No sequencer uptime feed on this chain; see Oracle Failure.
• Stock Token issuer risk. The quote asset is a third-party tokenised debt security. Its issuer can pause it, redeem it, rescale it or discontinue it. TAPEZERO has no control over any of that and no relationship with the issuer.
• Corporate actions. A split or multiplier change alters the quote asset under a live market. Existing markets are not paused for it.
• Halts and market hours. These are off-chain warnings only. A stock-quoted market keeps trading on TAPEZERO when the underlying market is closed.

Market structure risk

• Thin liquidity. A zero-seed market starts with no quote inventory. Early prices move violently and mean very little.
• High volatility is the normal condition of these markets, not an exception.
• MEV and front-running. Swaps are public before inclusion. Ordinary MEV applies.
• 500th-buy racing. The pot is deterministic and public; the winning position can be raced. It is not a lottery.
• Anti-snipe is a per-block aggregate cap, so a single well-funded buyer can consume a block's whole quota.
• Router compatibility. A pool with a custom v4 hook is not routable by every aggregator. If a route cannot be verified, TAPEZERO shows UNSUPPORTED ROUTE rather than a button that cannot work.

Infrastructure and other risk

• Robinhood Chain risk. A single-sequencer L2. Outages, reorgs, censorship and bridge risk apply.
• Indexer and API downtime. History and lists degrade. Markets are unaffected.
• Frontend availability and integrity. Always able to verify on-chain instead; see Onchain Verification.
• Regulatory risk. Markets quoted in tokenised stock exposure sit in an unsettled area. Rules may change, and may change what is permissible for you specifically.
• Permanent mistakes. A wrong fee recipient, a wrong valuation or a wrong rule cannot be fixed after launch.