# Liquidity, custody, and campaign risks

Audience: Participants | Version: 0.1 | Updated: 2026-09-05 | Status: Local review draft

The main gaps between a working local simulation and a usable live investment or exit.

## A quote is not guaranteed liquidity

The local Swap tab models a campaign-token and stable-asset trade. It does not verify pool inventory, an executable venue, price impact, counterparties, or settlement. There is no guaranteed liquidity provider or guaranteed market exit.

The modeled swap fee is 1% of stable notional. Half is assigned to possible backing purchases and half to a campaign expense reserve. The split does not prove that a backing purchase can execute, that the reserve belongs to holders, or that trading will generate returns.


## Custody and settlement remain external dependencies

The complete product would need to track each share-equivalent in one location: onchain base asset, conversion receivable, or settled brokerage share. Provider acceptance, reversals, encumbrances, return conversion, claims, and failures require reconciled records.

The local app and simulator do not establish a production custodian, broker, settlement rail, recoverability process, or authoritative liability model. A displayed balance or successful local transition is not proof that an asset can be delivered.


## Campaign progress is not voting proof

Reaching a goal does not prove that an SPV exists, settled shares are eligible on the record date, a lender has recalled shares, or an accepted proxy chain can cast votes. The fictional proposer labels and operational approvals are not external evidence.

Voting-capable quantity can be lower than economic backing. Treat voting power as unavailable unless the campaign shows reconciled custody, record-date, lending, and instruction evidence from accepted providers.


## Before relying on an amount or action

Use the source and availability labels together; a large displayed amount can still be locked, synthetic, stale, or unavailable for delivery.

- Confirm whether the figure is gross backing, modeled value, market price, NAV, or redeemable now.
- Check the campaign state, quote time, output asset, fee, limits, and settlement readiness.
- Check whether provider, custody, voting, and legal evidence is synthetic, unavailable, or externally verified.
- Account for the possibility of locked redemption, missing market liquidity, delayed returns, liabilities, and unresolved claims.

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TOWN · Activating Onchain Capital
Local review draft. Describes the fictional prototype and proposed product; not live investment terms.