What can go wrong

Trader positions, Community Indexes and vaults are all capable of going to zero, and nothing in the system prevents it. There is no deposit protection, no insurance fund and no counterparty who makes you whole.

SPOT's on-chain programs custody funds and have not had an external security audit. They have had internal review only. A bug in any of them can result in the permanent, unrecoverable loss of everything they hold. This is the single largest risk on this page and it is not theoretical — the project's own decision log records several fund-affecting bugs found during development.

Position prices come from a bonding curve, so every trade moves the price against itself. Buying pushes the price up as you buy; selling pushes it down as you sell. A large position cannot be exited at the quoted price, and in a thin market the gap can be severe.

The displayed price is the marginal price of the next unit. It is not the value of your holding, and multiplying it by your position size will overstate what you can actually realize.

A trader's realized performance feeds a premium on the buy price. That premium is a signal. It is not money in the reserve and it does not raise what your positions redeem for.

Only the Alpha Reserve is backing — actual SOL that buys positions back and burns them. Any interface, ours or anyone else's, that implies the performance premium is backing is wrong.

Trader ratings are computed from on-chain history using a flow-adjusted realized return against peak capital. It is a description of what already happened. It carries no information about what happens next, and traders whose measured performance is excellent can and do lose money immediately afterward.

Some wallets are not ratable at all. Where that is the case the product says so rather than inventing a number, and you should treat an unrated market as exactly that.

A vault manager trades the pool within a mandate. The mandate restricts what they can do — the assets, a concentration ceiling, no leverage, no lending, no transfers out — and the program enforces those limits rather than trusting the manager. But within the mandate their judgement is theirs, and they can lose your money by being wrong.

Managers earn a performance fee on realized profits. They do not share in your losses beyond their own locked stake.

Withdrawals settle on an epoch schedule and carry a minimum delay. You cannot exit instantly, and you cannot exit at a moment of your choosing. If valuation of an asset fails, settlement pauses and withdrawals wait — bounded, but a wait you cannot shorten.

If an asset the vault holds becomes permanently unpriceable — the liquidity is gone and there is no honest way to value it — it is moved into a side pocket. Your claim on it is frozen at that moment and separated from the main vault.

A side-pocketed claim may recover and distribute. It may also be written off at zero after a published resolution period, at which point the claim closes permanently. Side pockets exist because the alternative — pretending a dead asset still has a price — is worse, but they are a loss mechanism and you should read them as one.

The permitted universe is memecoins originating on Pump.fun. Total losses in individual positions are normal in this asset class, not exceptional. A concentration ceiling limits how much of a vault any single one can be, but it does not make the underlying less volatile.

SPOT never takes custody of your wallet. If you lose your key, or sign a malicious transaction somewhere else, nobody at SPOT can reverse it, recover it, or help.

Network congestion, outages and failed transactions are all possible and outside our control. A transaction that fails may still cost fees, and during congestion a time-sensitive action may not land at all.

The public deployment settles against Solana devnet. Devnet SOL has no monetary value. Nothing here is a live market for real money yet, and devnet state can be reset or discarded without notice.

SPOT provides tools and data. It does not provide investment, legal, tax or financial advice, and nothing produced by it is a recommendation to buy or sell anything. Whether any of this is suitable for you is a question we are not able to answer.