Risk and Governance FAQ

What protection do investors have if NUVA ceases operations?

NUVA is a decentralized platform leveraging smart contracts to execute orders performed by the users and counterparties.  Vault tokens represent pro-rata claims on pooled assets, so their fate depends on the underlying structure.  In the non-custodial protocol tokens remain redeemable via on-chain mechanisms, even post-cessation.

Is NUVA classified as a Collective Investment Scheme (CIS)?

No. NUVA vaults are not managed by professional managers, or individuals in general.

Terms of Service

• Link or embedded content

• Key user obligations

• Limitation of liability

Privacy Policy

• Data collection practices

• Data usage

• User rights

Cookies Policy

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Disclaimers

Performance Disclaimers

• APY is not guaranteed

• Forward-looking projections only

• Historical performance ≠ future results

Regulatory Disclaimers

• Not available in all jurisdictions

• Regulatory risks by region

• User responsibility for compliance

Smart Contract Risks

• Execution risk

  • Risk that smart contracts do not execute as intended:

    • Code bugs or logic errors

    • Unexpected interactions with other contracts

    • Edge cases not caught during testing

  • Mitigation:

    • Sherlock audit covering contract execution

    • Formal verification of critical functions

    • Ongoing security monitoring

• Upgrade risk

  • Risk associated with updating or modifying contracts:

    • Bugs introduced in new code

    • Breaking changes to contract behavior

    • Governance delays preventing necessary fixes

  • Mitigation:

    • Thorough testing of upgrades before deployment

    • Multisig approval required for upgrades

    • Clear upgrade procedures with community notice

• Liquidity risk

  • Risk that contracts cannot process redemptions:

    • Insufficient USDC to process instant redemptions

    • Underlying assets become illiquid

    • Unexpected demand for redemptions

  • Mitigation:

    • Vault maintains USDC reserve for redemptions

    • Diversified underlying assets

    • Standard redemption option for HELOC (longer settlement)

• Operational risk

  • Risk of operational failures:

    • Loss of private keys for multisig wallets

    • Compromise of admin accounts

    • System outages or infrastructure failures

  • Mitigation:

    • Multisig wallets distributed across team members

    • Hardware wallet security for keys

    • Redundant infrastructure and monitoring

Market Risks

• Cryptocurrency market volatility

• RWA asset risks

• Interest rate risks