Risks

What can go wrong, stated as plainly as what goes right.

Rent stops or the operator stops sending

The price rises only when USDG reaches the vault. If tenants stop paying, apartments sit empty, or the operator stops transferring net rent, the price stops rising. It does not fall on that account, because nothing can take USDG out of the vault except a redemption. Your vRENT keeps its current value in USDG and earns nothing until transfers resume.

No contract forces the operator to send rent. The Roll makes a missed transfer visible: each Roll states how much was settled, and on rent day the vault's USDG balance on chain should rise by that amount plus the token fees.

Large repairs send nothing

A large repair or capital project can cost more than a month's rent. That month sends nothing to the vault and opens a shortfall, which later rent repays before any of it reaches the vault. In the sample data, one boiler replacement took a whole month's rent and part of the next. A roof, or several failures at once, could stall the price for several months.

USDG and its issuer

The vault holds USDG and pays out USDG. USDG is an upgradeable, pausable token controlled by its issuer. If the issuer pauses transfers, changes the token's code, or fails to keep USDG worth a dollar, you could be unable to move or cash out your USDG, or it could be worth less. The vRENT price is counted in USDG and would not show any of this. Rentday's promise that redemption is never paused covers Rentday's contract only.

You do not own the buildings

vRENT is a share of the USDG in the vault. The operating company owns the buildings, and vRENT gives no title, lien or claim on them. If a building rises in value, the vRENT price does not follow: appraisals change the tax and insurance charged and nothing else. What would happen to the buildings if the company failed depends on the terms and jurisdiction of the offering, which have not been published yet (see Disclosures).

A small portfolio

The portfolio is small on purpose, so that it fits on one readable page. The cost is concentration: one vacancy, one late tenant or one boiler moves the month's result by a visible amount. The sample portfolio has 34 apartments in five buildings. The real portfolio will be published before launch.

Limits of the hash

The SHA-256 hash on chain proves that a Roll file has not been edited since the operator committed it. It says nothing about whether the rents, statuses and costs in the file are true. Rentday has not yet named an independent attestor to check the figures; the name will be published before launch. Until then the figures rest on the operator's word, plus what you can check yourself: the arithmetic, the unit count and the transfers on chain.

Unaudited contracts

RentdayVault and RollRegistry have a test suite covering ERC-4626 behaviour, the cap and pause, inflation attacks, the owner's limits and the registry's numbering (see Security). They have not been audited by a third party. A bug in the contracts, in the OpenZeppelin code they build on, or in Robinhood Chain itself could lose funds.

The operator is a trusted party

The operating company works off chain. It collects the rent, pays the bills, decides what goes into each Roll, sends the net rent and holds the owner keys to both contracts. The contracts limit what those keys can do, and no key can take USDG out of the vault. The contracts cannot see the apartments. You are trusting the company's reports, and trusting it to keep sending rent.

$RENT is volatile

$RENT trades on a bonding curve, and its price can move fast in either direction, including toward zero. It gives no claim on the apartments, the vault or its USDG. The token fee it sends to the vault depends on trading volume and can be zero in a quiet month.