What can go wrong

The ways the share price falls, and the things a hash does not prove.

This page is a plain account of how the mechanism can go against you. It is not legal or regulatory advice — see Disclosures.

The price can fall

• A tenant stops paying. Rent that does not arrive is not counted, but the property taxes, insurance and management fee for that month still are.
• A unit sits empty. A vacant unit owes nothing under its lease, so the rent the vault was collecting simply stops.
• A roof needs replacing. Capital works come out of the same month's rent. A large one can make the month negative.
• Costs outrun collection. When collected + arrears is less than the month's expenses, rent_net is negative and the share price goes down.

A negative month gets the same report, on the same schedule, with the same detail.

The price ignores what the buildings are worth

The share price is the vault's USDG divided by its shares, and nothing else. If the portfolio appreciates, that does not show up in your share price; you see it only as the rent it supports. If it falls, likewise. Do not read the share price as a valuation of the real estate.

A hash is not an audit

Recomputing a Roll's hash and matching it against the chain proves one thing: the file you are reading is the file that was committed on chain, and nothing in it has been edited since.

It does not prove the figures inside it are true. That is what the independent attestor is for — they check the report against bank records. If that check is not finished when a Roll publishes, the Roll says so on its face. Those are two separate promises and it is worth keeping them apart in your head.

The contract audit is not third-party

The code audit published with this repository was performed by the same party that wrote the code. It pins bytes and it lists known-open findings, but nobody independent has signed anything. Read The audit, including its open section, rather than the word "audited".

USDG is not DEED's promise

The vault holds USDG, which is an upgradeable proxy contract with a pause, controlled by its issuer. DEED's guarantee that you can always redeem is a guarantee about DEED's contract. It cannot be a guarantee about the asset underneath it.

The portfolio is small on purpose

That is the point of the Roll, and it is also a concentration. A handful of buildings across a handful of cities is less diversified than a large fund, and one bad building is a larger share of the whole.