Risks

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

Trading slows or stops

The vault's income is the creator fee on $RENT trades, so it follows trading volume. A quiet month adds little USDG, and a month with no trading adds none. Nothing guarantees volume, and $RENT has only just launched, so its trading history is short.

When income falls, the vRENT price rises more slowly or 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 fees resume.

The operator is a trusted party

The operator claims the fee from Pons, holds the claimed ETH in the owner wallet, swaps it to USDG, settles the USDG into the vault, writes each Roll and holds the owner keys to both contracts. No contract forces the operator to claim, swap or settle, or to do it on time.

Between a claim and rent day, the fee sits in the owner wallet, outside the vault and outside its protections. If the operator kept it, lost the key or stopped working, that month's fees would not reach the vault.

What limits this risk is visibility. Every step is a public transaction, and the Roll names each one by hash. On rent day the vault's USDG balance on chain should rise by the Roll's usdg_to_vault, and you can compare each claim with what the owner wallet received and what the swap delivered.

The ETH price moves before the swap

Fees accrue in ETH during the month and are swapped to USDG at the month's end. If ETH falls between a trade and the swap, the month's fees buy fewer USDG. The swap itself can also get a worse rate than the market price. The Roll records the rate achieved, so you can compare it with the ETH price on that day.

Pons controls the fee

The creator fee's mechanics belong to Pons: the rate, how the fee accrues and how it is claimed. If Pons 2 changes the rate, pauses claims, stops operating or has a fault, the vault's income changes or stops with it. Nothing in Rentday's contracts can influence how Pons behaves.

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.

The owner key

The owner key can pause deposits, change the cap and publish Rolls. Whoever holds it could publish a false Roll under the next number. The key cannot move USDG out of the vault or touch anyone's vRENT.

Ownership cannot be renounced. If the key were lost, deposits would stay in whatever pause state they were in, the cap could not change and no further Roll could be published. Redemption would keep working.

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 figures in the file are true. What you can check is the arithmetic in the file and the transactions it names: each claim, the swap and the settlement can be opened on the explorer.

Unaudited contracts

RentdayVault and RollRegistry have a test suite of 44 passing tests 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.

$RENT is volatile

$RENT can move fast in either direction, including toward zero. It gives no claim on the vault or its USDG. The vRENT price does not track the $RENT price: the vault gains only from fees on trades that happen, and trading can dry up.