10 — RISKS
Risks & disclosures
- This is a playtest. Parameters are live and will change. Season 0 runs with nothing at stake on purpose.
- The curve will probably never graduate. Graduation needs 4.2 ETH of net buying against a 714,285,714-coin allocation. Observed graduation rates on Pons V2 are under 1%. The game is designed to be playable without graduation; most of the mechanics in this paper never depend on it.
- There is no team allocation. The supply split sums to 100% — 5/7 curve, 10/49 pool seed, 4/49 locked. Nobody, including us, holds an unlocked reserve of $SHARD. Any reward the game pays in $SHARD would have to be bought on the open market, which is why the game does not pay rewards in $SHARD.
- $YIELD can be worth zero. It is a share of the fee reserve, and the fee reserve is funded by trading. If nobody trades $SHARD, the reserve stops growing, R trends toward zero, and $YIELD becomes worthless. This is the designed behaviour of a share, not a bug — but it is a real way to lose the value of your time.
- $YIELD is not a coin. In Season 0 it is a database entry with no contract, no liquidity and no transfer. It cannot be sold. Any listing that appears under this name is not ours.
- Deflation depends on raiding. The burn only continues while players keep buying tickets. If raiding stops, deflation stops.
- Price is two-sided, and more so after graduation. The curve prices $SHARD up on buys and does not guarantee a floor. After graduation the price floats on Uniswap v4 with no support of any kind, and a deflationary supply does not create a bid.
- The Pons V2 curve shape is not public. The exponential model in section 03 is our best fit to two known endpoints, not a published formula. Real prices will differ. Everything in the game is priced in USD precisely so that this does not matter to play.
- Simulation is not proof. The agent-based model in section 08 ran on rules we have since replaced. Its figures are superseded and must not be quoted.
- On-chain migration is conditional. Phase 3 happens only if Phases 1 and 2 survive contact with real players.
- Nothing here is financial advice. This document describes a game economy.
