Risks

Read this first

A floor limits how low a coin can trade. It does not make a coin safe, and it does not make anyone money. These are the risks we know about. Read them before you buy, launch or borrow.

The risks

• Smart contract bugs. The contracts are tested and get an external audit before real money, but audited code can still have bugs, and a bug could lose funds.
• The price can fall all the way to the floor. Above the floor, nothing holds the price up. A new coin's floor starts low: in the bonding example, it opens at about 12.5% of the price.
• The floor is priced in ETH. If ETH falls against the dollar, the dollar value of the floor falls with it, even though the floor in ETH has not moved.
• The first minutes cost more. For 3 minutes after a launch, trades pay an anti-snipe fee on top of the trading fee: 30% in the first minute, 20% in the second and 10% in the third. It goes to the Floor Wars pot, not back to the coin's holders, so buying and selling in that window costs far more than trading later.
• The floor rises only when the coin trades. Fees are what lift it. With little or no volume, it barely moves.
• Prices move harder above the floor. Half of the raise sits in the floor reserve instead of the pool, so the pool above the floor is thinner and each trade moves the price more.
• Bridges. Buying from other chains, or moving coins between chains in phase 3, adds each bridge's own fees and risks.
• Loans may be regulated. Loans are a lending product, and lending may be regulated where you live. Looping also magnifies losses (see Borrowing).
• An unpaid loan gives up the coins. If you do not repay within the term, your locked coins are sold. You keep the cash you borrowed, but anything the coins fetch above the loan goes to buying and burning $FLOOR, not to you.
• Stock tokens. Robinhood stock tokens are not available to US, Canadian, UK or Swiss persons. This matters only if stock-token floors ship in phase 4, after legal review.

Disclaimers

• Hardfloor is independent. It is not affiliated with or endorsed by Robinhood Markets.
• Nothing on this site is financial advice.
• The floor is enforced by the contract. It is not a promise of profit or of any return.
• Hardfloor is in beta. The contracts have had an internal review, not an external audit, and the $FLOOR token has not launched.