Frequently asked questions

If your question is not here, the honest answer is probably in Risks & disclosures.

Ownership and custody#

Do I still own my shares?

You own exactly what you owned before: the stock token. Neither CredX nor anybody else holding a Robinhood Stock Token owns the underlying share — these are tokenized debt securities that give economic exposure, not registered ownership. Depositing into the vault does not change that in either direction. Your tokens come back exactly as they went in.

Who can move my collateral?

You, at any time, as long as it leaves your health factor above 1. The liquidation engine, only when health is below 1 and only up to the 50% close factor. Smart Deleveraging, only in the 1.00–1.10 band and only the minimum slice needed — and you can switch that off. Nobody else, under any circumstances, including the team.

Can the team take my funds?

The pause guardian multisig can halt new borrows and deposits. It cannot halt repayment, cannot halt withdrawal of healthy collateral, and cannot move user funds. That said: a multisig with pause power is still trust, and you should treat it as such until governance is live.

Borrowing#

Where does the USDG I borrow come from?

From other users. USDG is issued by Paxos and backed 1:1 by reserves — CredX does not mint it and never will. Lenders deposit into the pool, borrowers draw from it against collateral, and lenders earn the interest borrowers pay, less a 15% reserve factor.

Is there a repayment schedule?

No. Repay any amount at any time, or nothing at all as long as your health factor holds. There is no maturity on a variable-rate draw and no prepayment penalty on a fixed one.

What does it cost if I never draw?

Nothing. An open credit limit is not debt. Zero interest, infinite health factor, no liquidation risk. Plenty of users hold a line purely as standby liquidity.

Can the rate change after I borrow?

On a variable draw, yes — it floats with pool utilisation and can move sharply if utilisation crosses the 90% kink. Fixed-term draws lock the rate for 7, 30 or 90 days at a duration premium. See Borrowing USDG.

Risk and liquidation#

Will I get liquidated the moment my health factor dips?

No. Smart Deleveraging arms at 1.10, before liquidation is possible at all. It sells the smallest slice needed to restore 1.35 and repays that debt for you, at a 0.30% swap fee instead of a 5–8% liquidator bonus. You can also self-liquidate manually at any time with no penalty.

What happens when the US stock market is closed?

Market-Hours Risk Mode kicks in: LTV is cut and borrow caps tighten, scaling with how long until the next real price. The weekend haircut is the largest. Crucially, this affects new borrowing power only — an existing position does not become less healthy when the clock strikes four.

Can I lose more than my collateral?

No. The position is non-recourse: there is no mechanism by which the protocol can pursue you beyond the collateral in the vault. The worst case is losing that collateral entirely.

What happens if the price feed breaks?

A stale feed freezes new borrows against that asset while leaving repayment, deposits and self-liquidation open. A price move beyond the deviation band inside one block halts liquidations for that asset until two independent updates agree.

Lending#

Can I always withdraw?

Up to the pool’s available liquidity, which is total supplied minus total borrowed. At high utilisation, a large withdrawal may need to wait for repayments or new deposits — the rate model makes both attractive fast, but not instantly.

What am I actually exposed to as a lender?

Bad debt from an overnight gap, smart contract failure, oracle failure, and USDG itself. All four are detailed in Lending USDG. The yield exists because these risks are real.

The product#

How does the portfolio LTV work?

The risk engine prices the basket, not the tokens. It computes the correlation-adjusted volatility of everything you have deposited and grants LTV against that — so a spread across an ETF, two mega-caps and a consumer name borrows more than the value-weighted average of its parts would allow. Diversification credit is capped at 6 percentage points.

What about dividends and stock splits?

Robinhood reflects both through a multiplier on the token. Our oracle reads the multiplier-adjusted economic value rather than the raw balance, so your collateral keeps compounding dividend exposure while it backs a loan.

Is there a token?

Not yet, and not on day one. Phase one is points: lending, borrowing, referral and liquidity-provider points plus a non-transferable reputation score. Governance arrives once USDG liquidity is deep enough, the liquidation engine has been proven in production, audits are closed, and there is a decision worth voting on. See Season 1 points.

Who can use this?

Robinhood Chain is permissionless, but Robinhood Stock Tokens are not offered to residents of the United States, Canada, the United Kingdom or Switzerland. The frontend applies geo-restriction and shows the required disclosures. Availability is a legal question, not a technical one — check your own jurisdiction.