Risks

Written plainly, because the failure modes here are real and you should know them before buying anything.

The prizes have an issuer who can move them

xStocks mints carry a permanent delegate, a Token-2022 extension that lets the issuer transfer tokens from any wallet without the holder's signature. Backed Finance holds that authority on every prize in the pool.

This is not specific to this game. It is how regulated tokenized equities work, and it exists so the issuer can honour redemptions, comply with court orders and handle corporate actions. But it does mean a prize in your wallet is not censorship-resistant the way SOL is.

The same mints also carry a pausable extension. If the issuer pauses a mint, transfers of it stop, including payouts.

They are not shares

An xStock is a claim on a share held by a custodian, not the share itself. You get no voting rights, no direct dividend entitlement, and no shareholder relationship with the underlying company. If the issuer or custodian fails, your recourse is against them, not against the company whose ticker is on the token.

Market risk, in both directions

A prize is worth whatever the underlying equity is worth. Between winning and selling, its value can fall. Tokenized equities also trade continuously, while the underlying market does not, so a token's price can drift from the reference price outside market hours and gap when the market reopens.

On-chain depth for these names is far thinner than the real equity market. Selling a large prize can move the price against you.

The token itself

The pot is funded entirely by trading fees on $GACHA. If volume dries up, pots shrink toward zero and rounds start voiding. The game does not subsidise prizes from a treasury, so there is no floor under the payout.

$GACHA is a volatile asset with no intrinsic value. Buying it to enter draws means taking price risk on it, and that risk can easily exceed anything you win.

Operator trust

The draw is provably fair, which removes the operator's ability to choose winners. It does not remove everything.

• The keeper holds the keys that claim fees, buy stocks and send prizes. It is trusted to execute.
• The operator controls the stock catalogue and the round parameters, and can change them for future rounds.
• The stock draw's candidate list depends on live market data and cannot be replayed exactly. See Provable fairness.

Infrastructure

Rounds depend on Solana RPC, the Meteora pool, Jupiter routing and a database. Any of those failing causes rounds to void. Voided pots roll forward rather than disappearing, but the game stops paying out until service is restored.

Solana congestion can cause a transaction to fail even when everything else is healthy. The keeper retries and uses priority fees, but it cannot guarantee inclusion.

It is gambling

Rounds are a game of chance. Most participants in most rounds win nothing. Expected value is not a reason to buy the token, and none of this is investment advice. Tokenized equities and on-chain prize draws are treated differently across jurisdictions, and it is your responsibility to know whether participating is lawful where you are.