# Risks ### Risks > ⚠️ Investing in HYBOND involves risks. Please read the full Risk Assessment document before investing. The following risk categories are applicable to HYBOND: #### Market Risk The underlying BNY Global Short-Dated High Yield Bond Fund is subject to market fluctuations. The NAV of HYBOND will vary in line with the performance of the underlying fund. #### Liquidity Risk Redemptions are subject to a **T+4 settlement period** and a **10% NAV gating limit per epoch**. In stressed market conditions, the ability to redeem may be delayed. #### Smart Contract Risk HYBOND operates on smart contracts deployed on Ethereum. These contracts may contain bugs or vulnerabilities. All contracts are subject to third-party security audits prior to mainnet deployment. #### Counterparty Risk HYBOND relies on BNY for fund custody and asset management, and on Coinbase/BitGo for crypto custody. Failure or insolvency of any service provider could impact investor assets. #### Regulatory Risk The regulatory landscape for tokenized real-world assets is evolving. Changes in applicable laws or regulations may affect HYBOND's operation or availability in certain jurisdictions. #### Oracle Risk The exchange rate is updated by an off-chain keeper bot and safeguarded by Price Guards. A failure or manipulation of the price feed could result in incorrect minting or redemption amounts. #### Operational Risk Manual processes — including KYC whitelisting, NAV updates, and fund wire transfers — introduce operational dependencies that may delay or disrupt normal vault operations. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.openeden.com/hybond/risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.