Risks

TRANT is non-custodial and permissionless. No one can freeze your position, reverse a liquidation, or make you whole if something goes wrong. Holding exposure directly means the risks are yours to manage.

Liquidation risk

A minted position must stay above its minimum collateralisation ratio. If the reference moves against you or your collateral loses value, the position can fall below that line and anyone can liquidate it for a reward, you lose collateral in the process. There is no grace period and no margin call. Keeping a buffer above the minimum, and topping up early, is the only defence.

Oracle & dispute risk

Reference values come from an optimistic oracle: a reporter proposes a value and it stands unless someone disputes it within the challenge window. A wrong or stale value can settle if no one disputes it in time, and a dispute can take days to resolve through escalation. During that window a position may be unsettleable or mispriced. The oracle is secured by economic incentives, not by a guarantee of correctness.

Smart-contract risk

Your collateral sits in contracts. A bug, an economic exploit, or a flaw in an integrated component, the AMM, a price feed, the oracle, can cause partial or total loss. Governance can change parameters such as collateral factors, fees, and approved assets, and those changes affect open positions. None of this code has been audited yet; see Audits.

Rebalance risk (event-triggered synths)

An event-triggered synth holds a basket of collateral that shifts when the referenced event resolves. The shift follows a formula fixed at mint and is bounded per rebalance, but it is still a change to what backs your position, a resolution can move the mix toward assets you would not have chosen. If the oracle never resolves the event, the rebalance stalls until it does or a keeper cancels it.

Market & liquidity risk

Synthetic markets can be thin. Exiting a large position may move the price against you, and in stressed conditions there may be no counterparty at a fair price at all. Liquidity providers additionally carry impermanent loss.

This list is not exhaustive. Synthetic assets carry risk; nothing here is investment advice.