Last updated: July 23, 2026

Risk Disclosures

1. Review release

This site presents illustrative synthetic credit assets and escrow vault mechanics for product review. It accepts no capital and executes no transactions. Nothing here is an offer, recommendation, rating, forecast, or promise of market availability.

2. Market risk

Market prices can be volatile, thin, manipulated, or unavailable. A displayed price may not be executable for meaningful size. Either token in the pair can lose its full value. The maximum loss on a purchased token is the amount paid for it.

3. Stress carry risk

The stress share (sHY) declines while markets stay calm. The decline is the cost of the position, and there is no promise that a payout will offset it. The maximum loss is the amount paid.

4. Calm side volatility risk

The calm side (cHY) loses value when volatility and credit stress rise, not only when defaults occur. The settlement number contains market repricing, so a credit spread spike near settlement can reduce the calm side's redemption even if no constituent defaults during the window.

5. Settlement source risk

Settlement reads an official third party return index computed by the index administrator under the administrator's published methodology, which covers mark to market, credit event outcomes, and the series roll. RAVA does not compute, control, or verify that methodology. Published levels can arrive late or be corrected, and corrections follow the administrator's rules. If publication stops or is interrupted during the settlement averaging days, the published fallback rule applies, extending the read to the most recent available official levels, and a prolonged interruption can delay settlement. The reference follows the administrator's roll methodology, so a portfolio with different issuers, seniority, or recoveries may perform differently from the settlement number.

6. Vault risk

The vault holds one unit of the designated collateral asset behind each minted pair. The pair redeems to that collateral unit, not to a dollar as such: if the collateral asset loses its peg or its value, both sides of the pair inherit that loss in full, and settlement does not compensate for it. Custody failure and software defects remain possible, as are redemption delay and poor liquidity. The two sides of a pair redeem to the escrow unit together, but the value of either side alone is not guaranteed.

7. Price and reference value risk

Market price and reference value are different. Market price reflects executable orders and expectations. Reference value reflects escrow, accrued carry, and the official return index level under the vault's published accounting. Either number can be stale or wrong.

8. Collateral risk

Outside protocols choose whether to accept cHY as collateral. They set the price source and collateral factor. They also control the supply cap and liquidation rules inside their own systems, and a position using cHY as collateral elsewhere can be liquidated under those outside rules.

9. Launch requirements

Any live market or vault requires separate legal review and market controls. Security review and settlement operations are also required, along with participant rules and deployment disclosures.