Important Disclaimers
Please read these Important Disclaimers carefully before depositing into, or delegating assets to, any Concrete vault product. References to “Concrete” mean the Concrete contracting entity identified in the governing agreements for the applicable product.
No Regulatory Protections
THE PROVISIONS OF THE SECURITIES INVESTOR PROTECTION ACT OF 1970 (“SIPA”) AND THE FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”) DO NOT APPLY TO ASSETS DELEGATED TO CONCRETE, AND NO GOVERNMENT DEPOSIT INSURANCE OR INVESTOR-PROTECTION SCHEME IN ANY JURISDICTION PROTECTS THOSE ASSETS. In the event of Concrete’s insolvency or default, recovery may be limited to the assets and collateral attributable to the relevant vault or strategy, which may constitute the primary or sole source of recovery.
Delegation of Operational Control
When you delegate assets to Concrete, you transfer operational control over those assets to Concrete while retaining beneficial ownership as represented by your vault shares or equivalent entitlements under the governing agreements. Concrete has sole discretion to select protocols and venues, 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. Displayed performance may reflect execution cost rebates and strategy partner capital allocations, where applicable. 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 assets 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 assets. DeFi protocols and venues where Concrete deploys assets are subject to smart contract exploits, protocol insolvency, oracle failures, governance attacks, and liquidity crises. If those protocols experience hacks or failures, assets deployed by Concrete could be lost, stolen, or inaccessible. Recovery of stolen assets may be delayed, partial, or impossible. Strategies rely on accurate price feeds; oracle failures could trigger unwarranted liquidations. Concrete implements continuous position monitoring, daily position reconciliation, and conservative collateralization ratios to mitigate these risks but cannot eliminate them.
Market and Liquidation Risks
Where a vault strategy involves borrowing, a decline in collateral value relative to borrowed amounts may result in liquidation of Concrete’s positions and loss of collateral. If an underlying or reference asset experiences a significant price decline (including, for stablecoin-denominated products, a depeg event) this could trigger liquidation, with lenders under the relevant protocols having priority claims to the associated collateral. In liquidation scenarios, claims priority typically follows: (1) protocol lenders and liquidators as secured parties; (2) amounts owed to Concrete under the governing agreements, such as accrued fees; and (3) users through their vault shares. Losses affecting one portion of a pooled vault could impact all participants proportionally.
Tax Implications
Yield earned on delegated assets 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 assets at any time, subject to operational mechanics, liquidity availability, unwinding of positions, custody transfer timing where applicable, and network conditions. Withdrawals may be delayed in extreme circumstances including smart contract failures or DeFi protocol issues. Concrete reserves the right to terminate a product 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 users 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 users. Concrete may transact with affiliates or related parties and may use operational proceeds for corporate purposes including trading or investments that may compete with user interests.
Availability and Eligibility
Concrete products are not available in all jurisdictions, including jurisdictions on Concrete’s restricted list. Access is subject to eligibility requirements, applicable law, and acceptance of the governing agreements. It is your responsibility to ensure that your use of any Concrete product is lawful in your jurisdiction.
Regulatory and Liability Limitations
Concrete products are subject to limited regulatory oversight and evolving regulations that could require product termination, impose new restrictions, affect tax treatment, or impact enforceability of rights. No regulatory authority has reviewed or endorsed any Concrete product. 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 liability is limited as set out in the governing agreements for the applicable product, which control in all cases.
Acknowledgments and Governing Provisions
By depositing into or delegating assets to any Concrete product, you acknowledge that you have read and understand these disclaimers 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 these disclaimers and executed or accepted agreements, those agreements shall govern.
THESE DISCLAIMERS 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 CONCRETE.