Risk Disclosure (Master)
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Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: 254900IX2F2KCWNSSS64).
Currency convention: Dashboard values can be displayed in USDT as an internal accounting reference. USDT is not depositable or withdrawable. Supported assets: BTC, ETH, SOL, and PAXG.
BASIS seeks to generate market-neutral yield through proprietary execution systems, structured staking design, and structural alpha capture. However, like all digital asset systems and financial infrastructures, BASIS is exposed to risk.
This document is written in a control-manual style. The objective is to make risks explicit, testable, and understandable.
1) General disclaimer
Digital asset markets are dynamic and subject to rapid change.
Historical performance figures are illustrative and reflect past conditions only.
BASIS targets yield through market-neutral execution and deterministic risk controls. Actual results depend on realized strategy performance.
Dashboard valuations can be shown in USDT as a reference unit, interpreted as a USD-equivalent estimate.
USDT is used for internal accounting and display only. It is not supported for deposit or withdrawal.
Supported asset flows are native-token based:
BTC deposit via a BASIS-assigned address unique to each account
ETH, SOL, and PAXG deposit via connected Web3 wallets
Swaps on BASIS are same-token only and 1:1:
BTC → stBTC
ETH → stETH
SOL → stSOL
PAXG → stPAXG
BASIS operates with institutional-grade control objectives supported by active, internationally accredited ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 certifications held by BASIS DIGITAL INFRASTRUCTURE LTD and publicly verifiable on IAF CertSearch. Certification supports governance and operational discipline, but does not eliminate market, technical, or counterparty risk.
2) Core principle: quantity preservation vs valuation risk
BASIS is designed to preserve and grow asset quantity through:
1:1 conversion between native assets and staking tokens
distribution of realized rewards in the same stToken
automatic crediting of unstaked claimable amounts into the Staking Wallet
However, BASIS does not guarantee the USDT valuation, USD valuation, or market price of the underlying asset.
Users should distinguish between:
"I hold more BTC, ETH, SOL, or PAXG"
and
"the displayed USD-equivalent value of that asset is stable"
These are not the same.
Quantity growth does not eliminate market price risk. If the underlying asset declines in market value, the USD-equivalent value of holdings will also decline even when asset quantity increases.
3) Risk categories (summary)
Market volatility risk The market value of BTC, ETH, SOL, or PAXG can decline materially.
Reference unit risk USDT can deviate from USD, and dashboard valuations shown in USDT might not match executable market value.
Operational strategy risk Execution failures, slippage spikes, partial fills, routing errors, timing mismatches, or venue-side interruptions can reduce expected performance.
Third-party venue risk Exchanges, custodial venues, counterparties, infrastructure providers, or liquidity venues could impose withdrawal halts, experience insolvency, suffer hacks, or face regulatory restrictions.
Technical risk Wallet errors, account security failures, chain instability, software defects, network failures, oracle dependency issues, or smart contract risk where applicable can impair operations.
On-chain execution risk Gas spikes, congestion, failed transactions, adverse ordering effects, and reduced execution precision impact DEX-related or wallet-based activity.
Liquidation and margin risk Derivative hedges or related positions become subject to liquidation if margin is insufficient or if market movements exceed modeled tolerances.
Liquidity and unwind risk Position exits can require time, especially during stressed market conditions. Fixed pools are only eligible to be unstaked after the lock-up period ends, with no early exit option.
Settlement and transfer risk Deposits sent to incorrect addresses, unsupported networks, or incorrect wallet configurations risk being delayed, rejected, or unrecoverable.
User workflow risk Errors in wallet connection, asset selection, staking actions, withdrawal destination selection, or misunderstanding of the two-wallet model can lead to loss or delay.
4) BASIS protective mechanisms (summary)
BASIS mitigates risk through a layered control framework supported by deterministic execution, mathematical constraints, and state-machine-based risk controls.
Control systems
BSCB (Sentinel Circuit Breaker) A protective trigger that halts strategy activity and initiates controlled position reduction when loss thresholds or abnormal conditions are detected.
DMM (Defensive Maintenance Mode) A controlled pause state for unwind procedures, root-cause analysis, reconciliation, and stable resumption.
Liquidity fragmentation Distribution of capital and execution across multiple venues to reduce single-venue dependency.
Controlled unstaking structure Fixed pools are subject to lock-up periods and can only be unstaked after the lock-up ends. This supports orderly liquidity management and reduces forced unwind pressure.
Two-wallet segregation Funding Wallet holds native assets for deposit and withdrawal. Staking Wallet holds stTokens for staking and reward accrual. This separation improves accounting clarity and operational control.
Infrastructure controls
BASIS execution infrastructure is designed around:
BHLE architecture
sub-50μs latency
100K+ OPS throughput
proprietary routing infrastructure
deterministic execution paths
state-machine-enforced guardrails
security and service management processes aligned with the active ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 certifications held by BASIS DIGITAL INFRASTRUCTURE LTD
These measures are intended to improve execution precision and structural alpha capture under normal and stressed market conditions. They reduce risk but do not eliminate it.
Research and systems design are informed by Base58 Labs, acting as Research Partner. Technical sophistication and internationally certified management systems improve control quality, but do not guarantee profit or eliminate loss.
5) Product mechanics relevant to risk
Understanding core product behavior is part of risk management.
Deposit assets
BTC, ETH, SOL, PAXG only
USDT
Internal accounting/display unit only
BTC deposit method
Copy your BASIS-assigned unique BTC address
ETH/SOL/PAXG deposit method
Connect a supported Web3 wallet
Swap model
Same-token only, 1:1 native asset to stToken
Rewards
Accumulate in real time as the same stToken in the Staking Wallet
Unstake
Full position only, auto-MAX
Claim after unstake
Auto-credited to Staking Wallet as stToken
Fixed pools
No early exit, unstake only after lock-up ends
Withdrawal fee
0.05%
Swap fee
0.01%
Deposit fee
0%
Wallet model
Funding Wallet
Holds native tokens for deposit and withdrawal
Staking Wallet
Holds stTokens for staking and reward accumulation
Misunderstanding this structure can result in confusion regarding balances, claimability, or transferability.
6) User responsibilities
Before using BASIS, users should:
understand the two-wallet model
understand that native assets and staking tokens are linked through same-token 1:1 swap mechanics
understand that dashboard values shown in USDT are reference estimates only
understand that USDT cannot be deposited or withdrawn
review risk disclosures relevant to the asset being used, including PAXG if applicable
verify deposit methods before transferring assets:
BTC via the BASIS-assigned account address
ETH, SOL, and PAXG via supported Web3 wallet connection
understand that active, internationally accredited ISO certifications support information security and service management governance, and that the public certification records are available on IAF CertSearch, but these certifications do not constitute a guarantee against loss
begin with conservative allocation and test workflows carefully
verify all wallet addresses, networks, and transaction details before confirming
Review the asset flow for your chosen token
Confirm whether you are depositing via BTC address copy or Web3 wallet connection
Verify that you understand staking, unstaking, and withdrawal constraints
Proceed only after confirming operational and market risks are acceptable to you
7) No guarantee
BASIS does not guarantee:
principal preservation
uninterrupted platform availability
continuous liquidity under all market conditions
stable USD-equivalent valuation
specific yield outcomes
protection from third-party failures
error-free blockchain settlement
immediate exits from fixed-term positions
Use of the platform involves real financial and technical risk.
Proceed to the next pages in this section for detailed disclosures.
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