Risk
Risk overview
Who carries which risk, and what the design does and does not protect.
Who bears what
| Participant | Main risk |
|---|---|
| CARRY | Stock at S0 after a breach |
| GUARD | Coupons paid, recovery missed after delivery |
| Backstop | Concentrated CARRY exposure |
| BERRIER holders | Token price and fee volume |
| Everyone | Contracts, oracle, issuer, regulation |
What the design does protect
- No liquidations and no margin calls on notes.
- No issuer credit risk from the protocol itself: every payout is escrowed.
- Outcomes depend only on scheduled official closes.
What it does not protect
- Losses from a stock falling below the barrier.
- Failures of USDG or the Stock Token issuer.
- Bugs in unaudited code. Get Berrier is pre-launch.