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.