# Risk & Legal

### What Rayze is

Rayze is a technology provider. It provides infrastructure for creating and operating onchain investment funds. Rayze is not a broker-dealer, investment advisor, custodian, or financial institution.

Funds on Rayze self-organize. Operators create funds, set rules, and manage capital. Contributors choose which funds to join. Rayze provides the coordination layer - not custody, not financial advice, not investment management.

### Non-custodial architecture

Rayze does not hold, control, or have signing authority over any fund's capital. All fund assets are held in Safe multisig wallets controlled by each fund's Admins. Deposits in the Limbo Vault are held by smart contracts, not by Rayze.

Users maintain control of their assets at every stage.

### Fund structure

Funds on Rayze operate as investment clubs with up to 99 members. Membership is gated through a request-to-join approval flow built into the platform. SHARES tokens are non-transferable - they cannot be sold, traded, or sent to another wallet.

These structural features - member caps, non-transferable tokens, approval-gated membership, non-custodial custody - are designed with regulatory considerations in mind. They do not constitute legal compliance in any specific jurisdiction. Operators and contributors are responsible for understanding the laws that apply to them.

### Risks

Using Rayze involves risk. This is not an exhaustive list.

**Smart contract risk.** Fund operations depend on smart contracts deployed on Base, built on Aragon OSx and Safe. Smart contracts may contain bugs or vulnerabilities despite auditing and testing.

**Market risk.** Funds trade volatile assets across perpetuals, prediction markets, and tokens. Fund value can decrease. Contributors may receive less than they deposited.

**Operator risk.** Fund Admins have execution authority over the treasury. While they cannot withdraw capital to personal wallets, poor trading decisions, inactivity, or mismanagement can result in losses.

**Liquidity risk.** Withdrawals proportionally liquidate fund positions. In illiquid market conditions, the value received on exit may differ from the treasury's marked value. Lock-up periods may prevent immediate withdrawal.

**Regulatory risk.** The regulatory environment for onchain funds is evolving. Laws governing digital assets, investment clubs, derivatives, and prediction markets vary by jurisdiction and may change. Rayze's infrastructure may become subject to new regulations.

**Protocol risk.** Rayze integrates with third-party protocols including Hyperliquid, Polymarket, and Aave. These protocols carry their own risks - downtime, exploits, liquidity issues, or changes to their terms of service - that Rayze does not control.

### No guarantees

Rayze does not guarantee fund performance, operator competence, or the security of third-party protocols. There is no platform-level insurance, compensation fund, or loss recovery mechanism.

Participation in any Rayze fund is at your own risk.

### Disclaimer

Nothing on this platform or in this documentation constitutes financial advice, investment advice, trading advice, or any other kind of advice. You should conduct your own research and consult with independent financial, legal, and tax advisors before making any investment decisions.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.rayze.io/risk-and-legal.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.