Risk Disclosure

1. Smart contract risk

Every vault listed in the Wallet is a smart contract deployed by a third-party protocol (Aave, Morpho, Lido, Sky, Pendle, and others). Smart contracts can contain bugs, be exploited, suffer governance attacks, or be drained. Even audited contracts have failed. Funds deposited may be lost if the underlying contract is compromised. Trust Scores reflect our assessment of audit quality and operational maturity but do not eliminate this risk.

2. Underlying asset risk

Tokenized real-world assets depend on issuer solvency, custodian integrity, regulatory standing, and the integrity of the off-chain attestation chain. A stablecoin can de-peg. A tokenized treasury can fail to redeem. A gold token can be undercollateralized. A liquid staking derivative can lose its peg. Crypto-collateralized DeFi positions can be liquidated in volatile markets, affecting lender liquidity. Synthetic products carry additional layers of these same risks compounded.

3. Tier-specific risk profile

Tiers reflect structural risk only. The Wallet does not prevent deposits into higher-risk tiers; it discloses them. See the methodology for the full framework.

• T1Physically-Backed RWA. Lowest structural risk in the framework. Still subject to issuer, custodian, and regulatory risk.
• T2Treasury & Fiat-Backed. Issuer redemption risk, regulatory risk, off-chain attestation risk.
• T3Secured DeFi. Smart contract risk, liquidation cascades, oracle manipulation, curator discretion. Materially higher risk than T1/T2.
• T4Synthetic & Structured. Multi-layer smart contract risk, basis risk, funding-rate risk, leverage unwind risk, novel mechanism risk. Highest risk tier in the framework. Requires explicit acknowledgment in the Wallet before deposit.

4. Trust Score is an opinion

A Trust Score is an analytical opinion produced by RWTS based on the published methodology applied to publicly available information at a point in time. It is not a recommendation, guarantee, prediction, or insurance. A high Trust Score does not mean an asset is safe. A low Trust Score does not mean an asset will fail. Scores can change as conditions change, and may lag material events. Always do your own research.

5. Non-custodial means non-recoverable

The RWTS Yield Wallet does not custody your funds. Every transaction is signed by your own wallet and submitted directly to the underlying protocol. RWTS cannot reverse transactions, recover lost private keys, freeze accounts, or move funds on your behalf. If you sign a transaction, it is final. If you lose your seed phrase, the funds are unrecoverable.

6. Network and gas risk

Transactions can fail or be delayed due to network congestion, RPC provider outages, MEV / sandwich attacks, or chain reorganizations. Gas fees can spike unexpectedly and exceed the value of small deposits. Exit / withdrawal flows on some protocols are subject to queues, epoch boundaries, or liquidity constraints — your funds may not be immediately redeemable.

7. Regulatory risk

The legal status of tokenized real-world assets and DeFi yield products varies materially by jurisdiction and is evolving. Some products may be unavailable to residents of certain jurisdictions. Regulatory action against an issuer or protocol can materially impair the value or usability of any rated asset. You are responsible for understanding what is legal for you in your jurisdiction.

8. Not financial advice

Nothing on RWTS, including Trust Scores, vault listings, research articles, the Wallet UI, or any communication, constitutes investment, legal, tax, or accounting advice. RWTS is not a registered investment adviser, broker-dealer, or financial institution. Consult appropriate licensed professionals before making financial decisions.