Plain statements of what can go wrong. Read this page before depositing size.
eUSD-specific
Risk
Description
Liquidation
Equity collateral gaps overnight and on weekends while liquidation runs 24/7 against the last anchor. A position near 130% can be liquidated on a Monday open it never saw coming.
Keeper dependency
Liquidations rely on keepers holding eUSD inventory at stressed moments; there is no pre-funded stability pool. Thin keeper participation slows the cleanup of bad positions.
Peg depth at launch
With a small debt ceiling, one large redemption or liquidation is a big share of the market. The ceiling rises as liquidity proves out.
Yield variability
sEUSD yield is real fee revenue from $OWN trading and moves with volume. No rate is guaranteed.
Redemption exposure
Healthy positions near the bottom of the sorted list can be partially redeemed at fair value, losing upside exposure on the seized portion.
eToken-specific
Risk
Description
Wrapper/issuer risk
Reserves hold tokenized stocks from regulated issuers. An issuer failure is insured by LP collateral, but a large simultaneous failure would test the cap math.
Maker liveness
Tier-one exits and tight spreads depend on live makers. The PSM and force-execution exist precisely for their absence, at oracle price rather than best price.
Market risk
eTokens track their underlying. Synthetic stock exposure carries full market risk.
System-wide
Risk
Description
Smart contract
Audited but not risk-free; the codebase includes upgradable modules (oracle verifier, sEUSD proxy) whose upgrades are admin-gated.
Oracle
Bands and freshness rules bound but cannot eliminate bad-price risk; a silent feed pauses new risk until resolved.
Governance keys
Parameters and listings are admin-set with a delay; the admin cannot touch balances or block exits, but parameter misuse (caps, fees, pauses on new risk) is a real vector until multisig migration completes.
LP first-loss
LP collateral explicitly absorbs residual failures; LPs can lose principal in an issuer or maker failure scenario.
Regulatory
Synthetic equity exposure faces evolving regulation. Own is not available to US persons or other restricted jurisdictions.
