Risks

Read these before you borrow here, and before you buy the token.

We hold the money

This is the first thing to know, and it is not an accident.

The pool, the treasury and the upgrade key belong to one owner address. The owner can withdraw idle pool cash and the treasury at any time, with no delay and no vote.
There is also an emergency withdrawal that can move anything the vault holds, including collateral escrowed for open loans. It announces itself on chain, and it is a real power, not a theoretical one: if it is used on escrow, those loans cannot be repaid or liquidated.
The vaults run behind a beacon the same owner controls, so the code can be replaced. Nothing here is immutable.
This project is not audited by Flap and is not registered with it: there is no Flap Guardian over these vaults, no verified badge, and no third party who could stop us.

If "nobody can touch your funds" is what you need, this is not that. What the code does guarantee is written below, and every number on this site comes from the chain.

Your collateral can be sold

That is the deal: a pawn you do not redeem is sold.

When the debt reaches 80% of what the collateral is worth, anyone may start selling it, in pieces. The trigger is a reading of the chain: we cannot pick the moment, and neither can you.
The term is the other trigger. 7 days plus 2 days of grace, and after that a step may run whatever the price is doing.
When the debt is covered, the collateral still escrowed is forfeit to the treasury. Liquidation is not a partial haircut: it ends the loan and what is left does not come back.
A fall can outrun the sales. If the collateral runs out before the debt is covered, the shortfall is the pool's loss, not a debt that follows you.

What your collateral is judged to be worth

Deliberately less than the screen price.

The value is the lower of what selling the whole position into the locked part of the pool would actually return, and the amount times a price that follows the daily average down but rises at most 5% per close. Expect a fraction of the market price, especially early.
Everything already escrowed here is queued in front of your sale in that measure, so a busy vault values the next position lower.
Liquidity somebody can withdraw does not count: only the share of the pool locked at launch does.
An offer must be signed by us before it can be taken. We can refuse a borrower, a size or a moment, for any reason. The chain then caps it again at 40% of that value, whatever the signature says.

And the token itself

A pawnshop cannot make its own token worth something.

The pool only grows with volume: 2% of each trade, less Flap's tenth, less 3% to the treasury.
Tax that nobody delivers sits on the token's processor until someone calls flush. The trigger exists for that, and it can stop.
Nothing here is a price floor. The vault lends against the token; it never buys it.
Every liquidation sells the token into its own market. Small pieces, 0.5% of depth at a time, but selling nonetheless.

What has and has not been checked

The mechanism has a test suite, stateful invariants, and mutation gates that must each be seen failing a named test. The liquidation engine is exercised against the live PancakeSwap pair on a fork.
It has not been audited by anyone outside this project, and it is not Flap-audited by design.
Measured against BNB Chain on 2026-09-23. What the checks cover.