The dollar vault holds USDG, issued by Paxos. It is backed by cash and Treasuries, but a stablecoin can lose its dollar peg.

Stock vaults borrow dollars worth about 30% of your shares and repay early if the stock falls. A crash of roughly 50% or more, faster than the vault can react, could let Morpho sell part of the shares to repay the loan.

Lending doesn't protect you from the market. If the stock falls, your deposit is worth less.

Credits come from what lent dollars earn minus what the stock loan costs. When that gap shrinks, credits slow down or pause.

If the dollars are fully lent out, a large withdrawal may wait until borrowers repay.

Robinhood issues the stock tokens and can pause transfers or block an address. While a token is paused, deposits and withdrawals for that stock wait until it resumes.

Stock price feeds pause when markets close. Prices can jump on reopen, which affects borrowers and liquidations.

A Raeto service turns interest into credits. If it stops, interest keeps building in the vault and is credited when it restarts.

Raeto runs on Morpho's audited contracts plus its own vault. Audits reduce risk but don't remove it.