Risks and limitations

Danake v1 is testnet software with an off-chain Roll, irreversible burns and no audit yet; this page lists every known risk plainly.

The Roll is computed off-chain in v1#

The contract does not compute losses. It stores the Merkle root the payer submits and checks proofs against it. A payer could submit a root that does not match the public logs, for example one that leaves out some wallets or inflates others.

How it is checked:

• The Roll is a deterministic function of public logs. Anyone can rebuild it with the CLI and compare.
• Every Fare page recomputes it and shows Roll verified or Roll mismatch. Verified means the root matches and the Fare's snapshotTime matches the timestamp of its snapshotBlock.
• Every Fare starts Pending for a dispute period. Nobody can burn during it, so a bad root is visible before anyone crosses. The payer can cancel during it.

What it does not do: nothing on-chain stops a Fare with a mismatched root from opening. Check the badge before you cross.

Fabricated losses#

A loss in the Roll is real on-chain history, but it can be manufactured: one person can wash-trade between two wallets so that one of them shows a loss while the HYPE went to the other. The snapshot in the past, the per-wallet cap and the minimum purchase age make this costly, not impossible. See Why it cannot be farmed. Payers carry this risk.

The payout token may be worthless#

A Fare pays in whatever token the payer chose. The protocol checks nothing about it except that it is not the dead token and does not take a fee on transfer. It can lose its value, be illiquid, or be another dead token. A Fare is an offer from a third party, not a promise from Danake.

The payout is not known when you burn#

The rate is fixed at settlement, from the total counted loss of everyone who crossed. The app shows an estimate from previewRate, and the max rate as an upper bound. Your final payout can be lower than the estimate if more loss crosses after you.

Burns are irreversible#

Crossing burns your tokens. There is no undo, including if the Fare later turns out to be a bad deal for you.

Stay clause limits#

The Stay clause checks a balance at a moment, not a history. See Stay clause.

Rounding dust#

Payouts are floored. Up to one unit of the payout token per wallet can remain in the market after everyone has claimed. It cannot be withdrawn.

Fees are locked on testnet#

The fee vault has no owner and no withdrawal function. Fees collected on testnet stay there.

Testnet software#

Everything runs on the Elysium testnet. Tokens have no value. Durations are shortened. Network parameters may change before Elysium mainnet. The demo launchpad, $LIVE and the demo rug exist only for testing.

No audit yet#

The contracts have not been audited. They have unit tests, fuzz tests on settlement math and invariant tests, which is not the same thing. Do not use them with assets of value.

No admin, no upgrade#

There is no owner and no proxy. That also means a bug cannot be patched in place: a fix requires a new deployment.