Risks

Before launching, trading, or earning dividends from tokens on IGNIX, make sure you understand the following risks.

General Risks

  • Prices are determined by the market. There is no principal protection. Prices on the Bonding Curve and in post-graduation liquidity pools are determined by market activity and may rise or fall significantly.
  • Smart contracts carry inherent risks. Any onchain protocol may contain undiscovered vulnerabilities or behave unexpectedly under extreme market or network conditions. Make sure you understand the relevant mechanisms before participating.
  • Token allocations and Creator Revenue may be subject to lockups. Unlock schedules are defined at launch and recorded onchain. Once set, they cannot be accelerated by any party.
  • Prime is not yet live. Any Prime-related features, parameters, or timelines described in the documentation may change before launch.

Dividend-Related Risks

  • Dividends depend on trading volume and are not fixed returns. Dividends are funded by trading taxes. If there is no trading activity, no new trading taxes or dividends are generated. Historical dividends and future estimates do not constitute any promise of returns.
  • Dividends are streamed linearly over 24 hours. After trading taxes enter the Vault, they are gradually added to holders' claimable balances over the following 24 hours. Your claimable balance may initially be zero. If you sell during the streaming period, any amount not yet accrued will no longer belong to you.
  • The allocation ratio is locked at launch. The Creator defines how trading taxes are split between the Creator and holders. This ratio is structurally locked by the contract and cannot be changed after launch by the Creator, IGNIX, or any other party. This prevents unilateral changes, but also means that an allocation cannot be adjusted later even if the original configuration proves unsuitable.
  • Tax rates have a different immutability model from allocation ratios. The current contracts do not expose a function for changing tax rates. However, tax parameters are stored in the upgradeable Manager contract, so their immutability does not have the same structural guarantee as the allocation ratio. See Choose a Vault Template for details.
  • External liquidity pools may accumulate unclaimable dividends. Liquidity pools created on external exchanges may accrue dividends like regular holders. These dividends may remain unclaimed in the dividend contract and are not redistributed to other holders.

Tokenized Stock Vault Risks

  • Tokenized stocks are issued by third parties and are not controlled by IGNIX. Issuers may retain permissions such as pausing transfers or upgrading contracts. Availability, liquidity, and redemption depend on the relevant issuer and its infrastructure, not IGNIX.
  • Conversions are executed under prevailing market conditions and are subject to slippage and timing differences. Trading taxes accumulate in the Vault before being periodically converted into tokenized stocks. Execution prices depend on market conditions at the time of conversion. While each conversion includes a platform-signed minimum output amount, this does not guarantee any specific execution price.
  • The asset list is locked at launch. Tokenized stocks selected for a Tokenized Stock Vault cannot be changed after launch. If an asset later becomes unavailable, stops trading, or is delisted by its issuer, the Vault cannot replace it with another asset.
  • Tokenized stocks are not the same as directly owning stocks. Holding a tokenized stock does not mean directly owning shares in the underlying company and does not grant traditional shareholder rights such as voting rights. Its price, liquidity, and redemption mechanics may differ from those of the underlying stock.

Agent-Related Risks

  • Agent revenue reflects historical verified data, not future revenue. Onchain Agent revenue displayed by IGNIX comes from completed escrow settlements. Historical revenue verifies past onchain activity only and does not constitute a prediction or guarantee of future revenue, profitability, or token performance.
  • Buyback Escrow is a revocable authorization, not a mandatory deduction. The mechanism depends on the Creator maintaining a valid authorization. The Creator may revoke that authorization or move the relevant balance, and IGNIX cannot prevent such actions.
  • If authorization is revoked or a deduction fails, the corresponding verification status will automatically downgrade and leave an onchain record. This does not mean that buybacks can be permanently enforced.

Nothing in this documentation constitutes investment advice. Before participating in any token launch, trade, or dividend mechanism, make sure you understand how it works and assess the risks independently.