# Risk Disclosure Statement
## MITHRIL YIELD TRUST
Effective Date: 10th of October 2025\
Version: 1.0\
Governing Law: Próspera ZEDE (Roatán Common Law Code & Arbitration Statute §2-1-37-1-0-0-1)
***
#### CRITICAL WARNING
Using Mithril Vaults involves a high risk of loss.\
You could lose all deposited assets.\
Do not deposit more than you can afford to lose.
***
### 1. SUMMARY OF KEY RISKS
* DeFi systems are experimental and may fail unexpectedly.
* Vaults may use perpetual futures and leverage, which can result in liquidation.
* Smart contracts may contain vulnerabilities—audits do not guarantee safety.
* There is no insurance or recourse for blockchain transactions.
* Protocol Fees and other applicable fees reduce overall returns.
* You are solely responsible for your own risk, legal compliance, and taxes.
***
### 2. SMART CONTRACT & DEFI RISKS
* Code Exploits: Reentrancy, oracle manipulation, flash-loan attacks, and front-running may cause total loss.
* Audit Limitations: Even audited contracts can be exploited.
* Dependency Risks: Failures in integrated protocols (examples but not limited to Lighter, Hyperliquid), oracles (Chainlink), or L2 networks (Arbitrum) can cause losses or stuck funds.
* Liquidity Constraints: Withdrawals may be delayed or queued; prices may slip during market stress.
***
### 3. MARKET & TRADING RISKS (SERIES A)
* Leverage Risk: Positions may be liquidated during adverse moves.
* Funding/Basis Risk: Negative funding or price dislocations reduce yield.
* Volatility: Extreme price swings and “black swan” events may occur.
* Execution Risk: Failed or delayed transactions may still incur gas costs.
***
### 4. BLOCKCHAIN & INFRASTRUCTURE RISKS
* Network Failures: Sequencer downtime, congestion, forks, validator failure.
* Oracle Failures: Stale or manipulated price feeds.
* Key Management: Loss of private keys means permanent loss.
* Wallet Vulnerabilities: Phishing, malware, or compromised software.
***
### 5. LEGAL & REGULATORY RISKS
* Evolving Laws: Regulations may change or restrict DeFi participation.
* Jurisdiction: The Trust operates under Próspera ZEDE law, but users must comply with their own jurisdictions.
* Securities/Sanctions Exposure: Vault shares or activities may be deemed securities; sanctioned persons or regions are prohibited.
* AML/KYC: Requirements may be imposed in the future.
***
### 6. OPERATIONAL & GOVERNANCE RISKS
* Strategy Performance: Models may underperform; rebalances may occur at unfavorable times.
* Centralization: Trustees maintain upgrade and emergency powers; no decentralized governance exists.
* Third-Party Providers: Infrastructure or service failures can disrupt access or cause losses.
* Emergency Powers: Trustees may pause, liquidate, or alter vault operations if necessary.
***
### 7. FINANCIAL & LIQUIDITY RISKS
* No Guaranteed Returns: Past performance ≠ future results. Returns can be negative.
* Fees: Performance, management, withdrawal, and 10% Protocol Fees reduce net yield.
* Concentration: Strategies may be exposed to a small number of assets or venues.
* Impermanent Loss: LP or hedging strategies can lose value when withdrawn.
***
### 8. STABLECOIN RISKS (E.G., USDC)
* Peg Risk: USDC or other stablecoins may lose their $1.00 peg.
* Issuer Risk: Circle or banks may freeze or fail to redeem.
* Regulatory Risk: Stablecoins may face new restrictions or oversight.
* Historical Events: USDC briefly de-pegged to $0.87 (March 2023).
***
### 9. TAX RESPONSIBILITY
* User Obligation: All deposits, rewards, and withdrawals may have tax consequences.
* No Advice: The Trust does not provide tax guidance or reporting.
* Consult Professionals: You must determine and satisfy your own obligations.
***
### 10. FORCE MAJEURE & EXTERNAL EVENTS
Events beyond the Trust’s control—including wars, cyberattacks, sanctions, pandemics, disasters, or power/network outages—can cause losses.\
The Trust bears no liability for such external events.
***
### 11. INFORMATION & DISCLOSURE
* On-chain data is public but complex and may be incomplete.
* Audits and proof-of-reserves (if any) are informational only, not guarantees.
* You must perform your own due diligence before depositing.
***
### 12. USER ACKNOWLEDGMENT & ACCEPTANCE
By interacting with any Mithril Vault, you acknowledge and agree that:
1. You understand these risks and may lose your entire deposit.
2. You accept that no guarantee of returns, performance, or safety exists.
3. You accept that fees (including the 10% Protocol Fee) reduce your yield.
4. You are solely responsible for compliance with applicable laws and taxes.
5. You have not relied on any marketing, forecasts, or oral statements.
***
### 13. GOVERNING LAW & INCORPORATION
This Risk Disclosure Statement is governed by the laws of Próspera ZEDE and forms an integral part of the Mithril Yield Trust Terms of Service, incorporated therein by reference.\
All disputes shall be resolved via binding arbitration under the Próspera Arbitration Statute, in English, with seat of arbitration in Próspera ZEDE.
***
### 14. EXECUTION & CONSENT
Electronic Acceptance:\
By clicking “I Acknowledge” or initiating a deposit, you provide legally binding electronic consent under the Próspera Uniform Electronic Transactions Act (RCLC §3801).
MITHRIL YIELD TRUST\
Beta Building, Oficina 6\
Próspera ZEDE, Roatán, Honduras\
📩
\