Risk disclosure

A zero-knowledge proving system is generated from secret parameters that must be destroyed. Destroying them takes a ceremony with independent contributors, and this deployment has not had one: its keys are development keys, generated in one place.

Anyone able to derive those parameters can create a proof for a Draft that was never funded and take everything the clearing house holds. Nothing else in the system mitigates it. This is why the deployment runs on a test network.

The contracts, circuits and clients have been reviewed only by the people who wrote them. There has been no independent audit, no formal verification and no bug bounty.

A defect in a zero-knowledge circuit does not look like an ordinary bug. It can let money be created from nothing, silently, with no transaction appearing unusual and no balance visibly wrong until the money is gone.

The contracts have no upgrade mechanism. A defect found after deployment can only be addressed by deploying a new set and asking everyone to move, and money in the old one may not be movable.

The verifiers are fixed at deployment. Changing a circuit means new verifiers, which means a new clearing house and a migration.

A Draft that has cleared cannot be recalled, reversed, cancelled or refunded by anyone. There is no chargeback and no dispute process.

A Draft written to the wrong payment details pays whoever those details belong to. Check them before you commit.

Your Account is derived from a secret held only on your device. There is no recovery, no reset and no administrator with a copy. Lose it and the balance is permanently unreachable by everyone, including you.

Anyone who obtains it owns the balance. A compromised device, a malicious browser extension or a screenshot of the secret is enough.

The system depends on the chain and its sequencer, the USDG token and whoever may freeze or seize it, the lending market credit is drawn from, the price feeds that market trusts, the RPC provider the interface reads through, and whatever infrastructure serves the page.

A halt, failure, censorship decision, misprice or compromise in any of them can cost you money, and none of it is within this project’s control to fix.

A chain reorganisation can undo transactions that appeared final. The index this interface can use does not handle one, and may need to be rebuilt after it.

Where the clearing house puts idle money to work in a lending market, its ability to pay you out depends on that market having cash. A market that is fully drawn, paused or at its cap can stall deposits and cash-outs.

If that market becomes unable to cover what it owes, the clearing house values its claim at what the market can actually pay, so the shortfall is shared rather than falling on whoever leaves last.

Credit drawn into an Account is a real debt on a public lending market, subject to that market’s interest rate and its liquidation rules. Collateral can be liquidated while the money drawn against it is already private and spent.

A Draft records no payer, payee or amount. Deposits are public with their amount and paying address, cash-outs are public in fixed denominations, and credit draws are ordinary public borrows.

Nothing here conceals your network connection. Whoever runs the clearing service you use sees the address and timing of every request your device makes, which is the sharpest link anyone can draw between you and your activity.

Patterns can identify you even when individual amounts are hidden. An amount only you ever move, or a timing habit, can be enough.

Test tokens have no value and cannot be exchanged for anything. The people who run a test network reset it at will, which destroys every balance on it.

The treatment of this kind of software varies by country and is changing. Using it may be restricted or unlawful where you are, and that can change after you have started.

Transactions may create a tax liability and a reporting obligation. Nobody reports on your behalf and nobody can.

If you are not willing to lose everything you put in, do not put it in. Nobody is able to make you whole, and nobody has promised to try.