Risk Framework

Understanding and managing protocol risks

Important

All DeFi protocols carry inherent risks. You could lose some or all of your funds. Only deposit what you can afford to lose. This section helps you understand the specific risks of holding BUCK.

Risk Overview

Buck's risk profile differs from traditional stablecoins and other yield-bearing tokens. Understanding these differences helps you make informed decisions.

Risk Categories

Category	Page	Key Concerns
Treasury & Collateral	Read →	Dividend risk, asset price volatility, collateralization
Oracle & Market Hours	Read →	Price gaps, oracle manipulation, liquidation protection
Smart Contract & Operational	Read →	Code security, upgradeability, custody, access control
Disclaimer	Read →	Token classification, legal disclosures

Quick Risk Summary

What Could Cause Losses?

Risk	Likelihood	Potential Impact	Primary Mitigation
STRC price decline	Low-Medium	Medium	100%+ overcollateralization
Dividend suspension	Very Low	Medium	$2.25B cash reserves, 77+ years coverage
Smart contract exploit	Low	Critical	3 independent audits
Oracle manipulation	Low	Medium	NASDAQ-based pricing + TWAP
Strategy insolvency	Extremely Low	High	$60B+ BTC treasury, preferred creditor status

What BUCK Is Not

• Not a stablecoin: BUCK price changes (upward) as yield accrues

• Not risk-free: Smart contract, counterparty, and market risks exist

• Not guaranteed: Yield depends on STRC dividends continuing

• Not insured by FDIC: This is DeFi, not a bank account

Audits

Three independent security firms have audited Buck's smart contracts. See Smart Contract Risk for audit details and report links.

Detailed Risk Documentation

For comprehensive risk analysis, see:

• Treasury & Collateral Risk →

• Oracle & Market Hours Risk →

• Smart Contract & Operational Risk →

• Disclaimer →

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Next: Treasury & Collateral Risk →