Risk Disclosure
DHP's economics are intentionally asymmetric against churn and indifferent to your P&L. Read it before using any vault.
What can go wrong, mechanically
| Risk | Mechanics |
|---|---|
| Round-trip cost | Enter + exit = 5% + 10% ≈ 14.5% of position value transferred away on the spot. Active trading through vaults is structurally loss-making. |
| Zero-sum payouts | Dividends come solely from other users' taxes. No external yield exists. If volume dries up, dividend income stops — permanently, and by design. |
| Token risk passthrough | Vaults hold the underlying token as-is. If the token goes to zero, every vault share does too. DHP cannot and will not "protect" you from the asset. |
| Malicious underlying tokens | Strict anti-FOT blocks fee/rebase/hook tokens, but no on-chain gate can read intent. The vault holds whatever it wraps — including tokens whose own contracts later mint, pause or blacklist. |
| Share-price ≠ market price | Rising share price (backing per share) says nothing about the token's market price. Both can fall simultaneously. |
| Chain risk | Vaults inherit sequencer/validator risks of their chain, including the young Robinhood Chain and Arc network. |
| Regulatory | Tax-and-dividend mechanics may be regulated as securities-like instruments in some jurisdictions. Users are responsible for their own compliance. |
A worked scenario (illustrative, not a projection)
100 tokens deposited → 95 in shares. Churn of 10,000 tax-tokens flows through the vault that month while you hold: your pro-rata dividend share accrues from the 80% pool; your claim is payable any time in tokens.
Exit the next day instead, and you pay 10% of your position for the privilege. The spread between those two behaviours — roughly 24.5 points of position value — is the entire protocol. Nothing else is promised, modelled or implied.
No expectations
No team. No roadmap-dependent returns. No treasury backing vault shares. No bailout. Vaults are entropy engines for token communities: entertainment-grade social infrastructure with real financial consequences. Use funds you can afford to lock or lose entirely.