Chapter 12

Risks

Read this one. It is not boilerplate and it is not a legal shield — it is the list of specific ways money is lost here, including several that no line of this codebase can prevent.

Risks in the token

The creator's stake can be sold into you. Nothing is granted for free — a creator's tokens are bought in the launch transaction — but they are bought at the lowest price the pool will ever offer, and nothing locks or vests them. A large first buy is a large overhang, and the token page shows what it was.
A launch is not a filter. Anyone can deploy a token pointing at any model id, with any name. Being listed means a transaction happened, nothing more.
Burns are not a price floor. Removing supply does not create demand. A token can burn steadily and still fall, and usually will if nobody wants to hold it.

Risks in the thesis

Trading is the only input. A token nobody trades has an empty vault and burns nothing, forever. There is no other source of revenue and no reserve to smooth it — and most tokens are not traded much.
The burn is small. One percent of the ETH side of each trade, spent buying at whatever the pool asks. It takes a great deal of volume to move a supply of a billion by a visible amount, and the figures on a token page will look unimpressive for a long time. They are real, which is the only claim made for them.
The fee is avoidable. Anyone can trade the pair directly on Uniswap and fund nothing. Volume you can see on a chart is not volume that paid a fee.
The model is not ours. Whoever built it has no relationship with the token, receives nothing, and has not approved it. The name is the token's identity, not a claim on anything they own.

Risks in the market

A token can be launched with almost no liquidity. The factory's minimum is a deploy-time parameter and on this deployment it is zero, so a pair may hold a few cents of ETH. The price such a pair reports is arithmetic, not a market: a single small buy moves it by orders of magnitude. Read the pool before reading the price.
Liquidity may be thin or absent. The ETH placed at launch is locked — those LP tokens were burned and nobody can withdraw them — but nothing stops anyone from adding more liquidity later and removing it whenever they like. A vault with no pair to buy into simply holds ETH it cannot spend.
Buybacks are public before they land and can be traded ahead of. They also move the price they execute at, which means the vault buys worse the larger it gets.
Timing is discretionary. Nothing forces a buyback to happen at all. If no keeper runs, ETH sits in the vault indefinitely.

Risks in the code

There is no external audit. See /docs/security. A bug in the vault would be permanent — there is no upgrade path and no pause.
There is no fork test. The contracts are tested against Uniswap V2 compiled from source, which is the real code — but never against the router actually deployed on the chain, because its RPC is unreachable from the machines this was built on.
Everything inherits the chain. A reorg, an outage or a bug in Robinhood Chain affects this protocol exactly as it affects everything else deployed there.

The worst case

What this protocol does not promise

No return, no rate, no price floor, no buyback schedule, no guarantee that anybody trades, and no claim on anything belonging to the people who built these models. INFERNO is software for launching tokens whose supply falls when they are traded. It is not an investment product, and nothing in this documentation is financial advice.