Important Disclosures
Please read these important disclosures carefully before participating in Concrete's funds Yield Generation Program.
Lack of Regulatory Protections
THE PROVISIONS OF THE SECURITIES INVESTOR PROTECTION ACT OF 1970 ("SIPA"), THE FEDERAL DEPOSIT INSURANCE CORPORATION ("FDIC"), OR SIMILAR REGULATORY PROTECTIONS MAY NOT PROTECT YOUR FUNDS WHILE DELEGATED TO CONCRETE. In the event of Concrete's insolvency or default, the collateral securing Concrete's DeFi borrowing obligations may constitute the primary or sole source of recovery for your funds.
Loss of Control and Concrete's Profit Model
When you delegate funds to Concrete, you transfer operational control over those assets to Concrete while retaining beneficial ownership through vault shares. Concrete has sole discretion to select DeFi protocols, determine collateralization ratios, choose yield strategies, and manage all positions.
Yield Rates Not Guaranteed
Concrete cannot and does not guarantee that any target yield rates can be achieved or maintained. DeFi yields fluctuate based on market conditions, and Concrete reserves the right to adjust, refresh, or discontinue offered rates at any time based on changes in borrowing costs, strategy performance, risk assessments, or market liquidity. Concrete cannot guarantee that you will receive the most favorable rates available in the marketplace. Yield rates are subject to periodic review and adjustment based on prevailing conditions and Concrete's cost of capital. You may withdraw your funds if dissatisfied with offered rates, subject to applicable procedures.
Smart Contract and DeFi Protocol Risks
Smart contracts may contain vulnerabilities or exploits that could result in loss of funds. DeFi money markets where Concrete deposits funds are subject to smart contract exploits, protocol insolvency, oracle failures, governance attacks, and liquidity crises. If DeFi protocols experience hacks or failures, Concrete's funds collateral could be lost, stolen, or inaccessible. Recovery of stolen funds may be delayed, partial, or impossible. The system relies on accurate price feeds; oracle failures could trigger unwarranted liquidations. Concrete implements continuous position monitoring, daily NAV accounting, and conservative collateralization ratios to mitigate these risks but cannot eliminate them.
Liquidation Risks
If Concrete's collateral value falls relative to borrowed amounts, DeFi money markets may liquidate Concrete's positions, potentially resulting in loss of collateral. If funds experiences a significant depeg, this could trigger liquidation with money market lenders having priority claims to custodied funds. In liquidation scenarios, claims priority typically follows: (1) DeFi protocol lenders and liquidators as secured creditors, (2) Concrete's operational claims, and (3) depositors through vault shares. Losses affecting one portion of the pool could impact all depositors proportionally.
Tax Implications
Yield earned on delegated funds may be characterized differently from other income types for tax purposes, potentially treated as ordinary income, interest income, or lending income depending on your jurisdiction. Concrete may be required to report your yield income to tax authorities. Withholding taxes may apply depending on your tax status and jurisdiction. Concrete is not required to compensate you for any adverse tax treatment. You should consult a qualified tax advisor before participating.
Withdrawal and Termination Rights
You may request to withdraw delegated funds at any time, subject to operational mechanics, liquidity availability, unwinding of DeFi positions, custody transfer timing, and network conditions. Withdrawals may be delayed in extreme circumstances including smart contract failures or DeFi protocol issues. Concrete reserves the right to terminate the program or your participation due to regulatory changes, risk management decisions, insolvency, breach of terms, or strategic decisions. Concrete may terminate and liquidate positions if you become insolvent, bankrupt, subject to receivership, unable to meet obligations, subject to regulatory actions, or breach representations.
Conflicts of Interest
Concrete's economic interest in maximizing spreads between yields earned and yields paid to depositors may conflict with your interest in receiving higher yields. Concrete's counterparty selection may be influenced by relationships with protocols, token incentives available to Concrete, integration considerations, or strategic relationships rather than solely obtaining best rates for depositors. Concrete may transact with affiliates or related parties and may use operational proceeds for corporate purposes including trading or investments that may compete with depositor interests.
Regulatory and Liability Limitations
The program is subject to limited regulatory oversight and evolving regulations that could require program termination, impose new restrictions, affect tax treatment, or impact enforceability of rights. No regulatory authority has reviewed or endorsed the program. To the maximum extent permitted by law, Concrete's liability is limited to the value of funds held in custody and associated collateral, subject to priority claims in liquidation. Concrete is not liable for DeFi protocol failures, market fluctuations, inability to achieve target returns, third-party failures, regulatory changes, or force majeure events. Concrete's total liability to any depositor is capped at the delegation amount plus accrued yield, less applicable fees and losses.
Acknowledgments and Governing Provisions
By delegating funds to Concrete, you acknowledge that you have read and understand these disclosures and the risks described herein, including lack of regulatory protections, liquidation risks, no guaranteed yields, smart contract and DeFi risks, tax implications, Concrete's profit model and conflicts of interest, and termination rights. Any disputes shall be resolved through binding arbitration per applicable agreements. In the event of any conflict between this disclosure and executed agreements, the executed agreements shall govern.
THESE DISCLOSURES ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DO NOT CONSTITUTE INVESTMENT, LEGAL, TAX, OR FINANCIAL ADVICE. CONSULT QUALIFIED ADVISORS BEFORE PARTICIPATING AND FOR ADVICE AS TO LEGAL, TAX AND ECONOMIC IMPLICATIONS. CONCRETE MAKES “FORWARD-LOOKING STATEMENTS,” WHICH DESCRIBE FUTURE EXPECTATIONS, PLANS, RESULTS OR STRATEGIES AND CAN OFTEN BE IDENTIFIED BY THE USE OF TERMINOLOGY SUCH AS “MAY,” “WILL,” “EXPECT,” “PLAN,” OR SIMILAR TERMINOLOGY. THESE STATEMENTS ARE BASED UPON CONCRETE’S CURRENT EXPECTATIONS, ASSUMPTIONS AND ESTIMATES, AND ARE NOT GUARANTEES. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN THESE STATEMENTS DUE TO A VARIETY OF RISKS AND UNCERTAINTIES. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION OR SOLICITATION OF ANY OFFER TO SELL, PURCHASE, DELEGATE OR LOAN ANY SECURITIES AND IS NOT INTENDED, AND DOES NOT, CREATE A BINDING OR ENFORCEABLE AGREEMENT ON THE PART OF THE COMPANY