> For the complete documentation index, see [llms.txt](https://docs.syndromics.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.syndromics.xyz/risk/issuer.md).

# Issuer risk

A Stock Token is not a share. It is a tokenized debt security issued by Robinhood Assets (Jersey) Ltd that tracks a share held in US custody. That distinction is inside every Syndromics loan and the protocol treats it as a first-class risk.

## What the risk is

| Component              | Description                                                                                                                                                         |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Credit risk            | If the issuer became insolvent, token holders would be creditors with a claim on the custodied shares. Recovery could be delayed or partial.                        |
| Freeze and restriction | The issuer's terms reserve the right to suspend, freeze or restrict tokens in certain circumstances. If exercised, escrowed collateral could become untransferable. |
| Redemption terms       | Primary redemption is KYC-gated at the issuer. The protocol never relies on redemption; it relies on secondary-market auction pricing.                              |
| Regulatory action      | A regulator could require the issuer to change terms, restrict jurisdictions or halt issuance.                                                                      |

## How the protocol accounts for it

### Tier LTVs include it

The gap between a Tier A maximum LTV of 55% and a hypothetical 80%-plus LTV for the underlying share at a prime broker is largely issuer and liquidity risk. The tiers are set so that a meaningful issuer haircut is absorbed before any slice is impaired.

### Bytecode review before a market opens

The published documentation shows no on-chain freeze function on Stock Tokens. That is not enough. The deployed bytecode of every listed token is reviewed for pause, freeze, blacklist or forced-transfer roles before its market opens, and the finding is published on the risk page next to the market. Where such a role exists it is reflected in the tier LTV and the exposure cap.

### Proof of reserve

Where a Chainlink Proof-of-Reserve feed or an equivalent attestation exists for the issuer's custodied shares, `OracleRouter` reads it and the risk page displays it next to every Stock Token market. Markets without such a feed show that explicitly.

### Concentration caps

Per-token exposure caps limit how much outstanding principal can sit against any one token. Because all Stock Tokens share one issuer, the risk page also reports total protocol exposure to Robinhood Assets (Jersey) Ltd as a single number, and a protocol-wide issuer cap is a candidate parameter for the guarded mainnet phase.

### Isolation

An issuer event on one token, or on all Stock Tokens, cannot affect a market whose collateral is a bridged treasury token, because markets share nothing.

## What lenders should know

Lending against Stock Tokens is lending against a claim on a regulated broker's custody arrangement, not against the share itself. Lenders who want exposure to the stock without the intermediation can set `selfLiquidate` and take collateral in kind, but they take on the same issuer claim. The tier LTVs and the caps are the protocol's opinion of how much that claim should be discounted; lenders are free to be more conservative through their own `maxLtvBps`.


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