Risk Disclaimer
The specific ways you can lose money here. Read this one properly.
Early termination: the exact terms
You can close a vault before its target at any time. The penalty slides with progress toward your target: 30% of the position at 0% progress, decreasing linearly to 5% as you approach the target.
Whenever a vault closes — sealed at target or terminated early, at any progress — the MV-Shares minted against it are burned. Dividends already earned stay claimable; only the claim on future distributions ends with the position. An early termination also pays a flat 20% fee on any gain (seals start at 20% and can fall to 15% on the closer's ladder: $100+ vaults sealed at target, at most one step a day), on top of the sliding penalty of 30% to 5% of the position.
Termination is a two-step action with a 10-minute delay between request and settlement. This is an anti-manipulation measure, not a withdrawal restriction.
These terms are enforced by the vault contract, not by policy — the same numbers are shown in the mint confirmation before you sign.
The most common outcome: your target never hits
At high targets, never reaching the target is the MODAL outcome, not the edge case. Be clear about what that means: your asset sits in the vault indefinitely. It earns no staking emissions (those go only to MOONX stakers). A vault of $100 or more may share in the vault drip, a discretionary, variable monthly MOONX pool paid from the Campaigns wallet, split pro rata by USD value x time open; the pool and the start date can change or stop, so it is not a fixed rate. The USDC dividend on its MV-Shares pays only when OTHER vaults realise profit, which in a prolonged drawdown can be little or nothing.
A vault is a commitment device, not a guarantee that your target is reachable. Pick targets you would defend to a sober version of yourself.
You can lose everything
Only commit what you can afford to lose entirely. Not "would rather not lose" — can afford to lose, completely, with no effect on your life.
Vault risk
A vault takes profit when it hits your target. If the target is never reached, the vault stays open and your tokens stay locked in it.
Terminating a vault early costs a penalty, on a sliding scale.
The token you vault can fall in value while the vault is open. Reaching a percentage target is meaningless if the token collapsed first.
Staking and emission risk
APR is not a promise. It is a fixed annual emission budget divided by however many tokens are staked. If more people stake, your rate falls. That is the design, and it is the reason the programme can be funded at all.
Emissions decay every year by schedule. The rate you see today will be lower next year.
LP staking carries impermanent loss. If MOONX moves sharply against its pair, you can end up worse off than if you had simply held.
LP can be withdrawn at any time and is never burned, but leaving before the lock ends forfeits the rewards accrued, and LP rewards are claimable only once the lock matures.
Single-sided MOONX staking has a 20% early-exit penalty. If you unstake before your chosen lock ends, one fifth of your principal is burned — permanently destroyed, not returned and not paid to anyone. A 30-day lock carries the same 20% as an 8-year one. Do not lock tokens you may need back.
Token risk
$MOONX liquidity is thin. Large sells move the price hard, and there may be no buyer at the price you want.
The buy-and-burn is funded by protocol revenue. If revenue falls, the burn falls with it.
Settlement currency: bridged USDC
Vault proceeds, MV-Share dividends, contribution rewards and protocol fees are all paid in USDC on PulseChain. That USDC is not issued on PulseChain: it is "USD Coin from Ethereum", created by the PulseChain Bridge when USDC is locked in the bridge on Ethereum. It is worth a dollar only while the bridge holds the USDC that backs it.
The bridge is run by PulseChain's own validators — five of eight signatures release funds — and its admin and upgrade keys are single wallets, not multisigs. If the bridge were compromised or drained, USDC on PulseChain could lose some or all of its value. MoonVault does not control the bridge.
The settlement token is fixed in the MoonVault contracts and cannot be switched. If bridged USDC lost value, vaults would keep sealing and paying out in it. A vault that reaches its target but cannot be sold for a full day can instead be closed by its holder and paid in the vault's own token, less the protocol's share of the gain (take profit in kind). The other dollar tokens on PulseChain (USDT, DAI) come through the same bridge, so they are not an escape from this risk.
We check the bridge's backing every 15 minutes — the USDC it holds on Ethereum against the USDC circulating on PulseChain — and will say so in the interface if it falls short. Checking does not prevent a loss.
Price feed risk
Vaults mint and seal against a price feed that the keeper updates on chain. A price older than 30 minutes is treated as stale, and while a feed is stale, minting and sealing that asset pause. A vault that reaches its target during an outage seals only once the feed is fresh again.
Early termination still works during an outage, but with no fresh price your progress counts as zero, so the penalty is the full 30%.
If a feed stops updating for 30 days, the vault holder can withdraw the whole position with no penalty and no price at all (rescue withdraw).
Liquidity risk
When a vault seals, its tokens are sold on PulseX. The contract refuses a sale below an execution floor — normally 3% under the feed price, 15% for $MOONX — fixed when the vault is minted. Slippage inside the floor comes out of your gain.
If the pool is too thin to sell the whole vault within its floor, the sale does not happen. The keeper then sells in smaller slices as liquidity allows, and until it can, the vault stays open. Large vaults in thin tokens can take several attempts to close, and none is guaranteed. If a vault at its target still cannot be sold a full day after its target is confirmed on chain, its holder can close it and receive the token itself, less the protocol's share of the gain, with no early-exit penalty.
The same pool depth applies in the other direction too — for example when the app spends $MOONX on your behalf, such as paying an Identity's mint fee in $MOONX. A thin pool can move the price against a large trade. The app does not block or warn you mid-transaction over this; it simply reflects the price the pool actually gives at the time.
Referral risk
Referral commission depends on what the people you refer actually do. Referring people who never mint or trade pays nothing.
MOONX referral and programme vouchers vest linearly (currently 90 days) once released, and their value can fall during that period. USDC commission and points-redemption vouchers do not vest.
Commission can be suspended where we detect wash-farming.
Technical risk
Smart contracts can contain bugs. MoonVault's contracts have not had an independent external audit yet, only internal review and rehearsals on copies of PulseChain. Audited code can contain bugs too.
The keeper that seals vaults at target depends on infrastructure that can fail or be delayed. A vault may not seal at the exact moment its target is reached.
Blockchain networks can congest, fork, or halt. Transactions can fail while still costing gas.
Front-running and sandwich attacks exist on public networks. The execution floor limits how bad a fill can be; it does not stop an attacker taking the slippage inside it.
Operator risk
Until the engine's wiring is finalised, its owner can re-point the price feed and swap router, and that applies to open vaults. Administrators can suspend referral commission for abuse and point the emission reservoir at its staking pool. There is no discretionary buyback. These powers are documented, but they are real, and they are exercised by people.
Treasury and reserve funds move under rules set at deployment. They are not frozen, and we do not claim they are.
Until the vault contract's wiring is finalised, its owner can point it at a different price feed and swap router, and that change applies to vaults that are already open. Finalising is a one-way switch planned for launch; after it, neither can be changed. Until then, this is the largest power the operator holds over open vaults.
All operator keys are single hot wallets, not multisigs.
Regulatory risk
The rules governing tokens and DeFi are unsettled and change. A change could restrict or end your ability to use this interface.
No advice
Nothing here is financial, legal or tax advice. If you need advice, get it from someone qualified and independent who is accountable to you.