> For the complete documentation index, see [llms.txt](https://argon-4.gitbook.io/argon-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://argon-4.gitbook.io/argon-docs/legal/risk-disclosure.md).

# Risk Disclosure

The risks of self-custody, digital assets, the Kaspa and Igra networks, covenants, bridges, and the third-party protocols Enclave can reach.

**Effective date:** September 6, 2026

**Version:** 1.0

This Risk Disclosure is part of the [Terms of Service](/argon-docs/legal/terms-of-service.md). It describes risks that are inherent in digital assets, in self-custodial software, and in the specific networks and third-party protocols that the Enclave wallet software (the "**Software**") can interact with. It is not exhaustive. New risks arise as networks and protocols change. The Developer cannot and does not protect you from any risk described here. By using the Software you accept all of them.

{% hint style="danger" %}
**You can lose everything.** Digital assets can lose all of their value. Transactions cannot be reversed. A lost recovery phrase cannot be recovered. A defect or exploit in a network, a smart contract, a bridge, or a browser can result in the total and permanent loss of your assets. Use only funds you can afford to lose, and never rely on the Software or any other single tool as your only safeguard.
{% endhint %}

## 1. Self-custody

**You are the only custodian.** The Software gives you sole control of your private keys, and with it sole responsibility for them. There is no account to reset, no support line that can restore access, and no insurance. If you lose your recovery phrase and the device that holds your encrypted vault, your assets are permanently gone. If anyone else obtains your recovery phrase, they own your assets and nothing can stop them from spending.

**Passwords and passkeys unlock a device, not your assets.** Your password or passkey protects the encrypted vault on one device. It is not a substitute for the recovery phrase. If the passkey's authenticator is lost, reset, or not synced, and you have no recovery phrase backup, you lose access.

**Irreversibility.** Every transaction you authorize is final once it is accepted by the network. A payment to a wrong address, a wrong amount, a wrong network, an address controlled by a scammer, or a contract that does not do what you expected cannot be undone by anyone.

**Address verification.** Addresses are long and are routinely spoofed. Malware can alter what is on your clipboard. A name (KNS, INS) can be transferred to a new owner. A token or collectible can carry a misleading name or image. Verify every recipient independently, and treat any unsolicited message about your wallet as hostile.

## 2. Digital assets generally

**Volatility and total loss.** Digital asset prices are extremely volatile and can fall to zero. Liquidity can disappear. Tokens can be abandoned by their issuers, delisted, or rendered worthless by a protocol change.

**No issuer backing.** KAS, IGRA, KRC-20 tokens, ERC-20 tokens, collectibles, names, and covenant tokens are not legal tender, are not backed by any government, bank, or the Developer, and are not deposits or insured by the FDIC, SIPC, or any other scheme.

**Regulatory uncertainty.** The legal treatment of digital assets, wallets, staking, bridging, lending, and decentralized exchange varies by jurisdiction and is changing. A change in law or an enforcement action could make an asset or an activity unlawful, worthless, or inaccessible where you live, or impose reporting or tax obligations on you retroactively. You alone are responsible for compliance.

**Tax.** Transfers, swaps, bridging, staking rewards, lending yield, and covenant settlements may each be taxable events. The Software does not compute taxes.

**Fraud and manipulation.** Digital asset markets are subject to fraud, market manipulation, rug pulls, wash trading, oracle manipulation, front-running, and MEV. Displayed prices and yields can be manipulated or stale.

## 3. The Kaspa network

**Decentralized and uncontrolled.** Kaspa is a public, permissionless network with no operator. No one, including the Developer, can pause it, reverse a transaction, or recover assets sent to a wrong address. Kaspa is a proof-of-work network with a blockDAG consensus; it can experience congestion, fee spikes, reorganizations of recent blocks, software bugs, hard forks, and contentious upgrades. A transaction that appears confirmed with few confirmations can, in rare circumstances, be excluded.

**Fee and mass rules.** Kaspa transaction fees depend on the transaction's size and on the network's storage mass rules (KIP-9). Consolidating many small UTXOs, or creating very small outputs, can be disproportionately expensive or impossible. Fee estimates are estimates; a transaction with too low a fee may not confirm.

**UTXO model and Notes.** Your balance is the sum of discrete unspent outputs ("Notes"). Spending requires selecting Notes; the selection affects fees, privacy, and whether a transaction can be built at all. Two-step actions (for example, a commit followed by a reveal) depend on the first step's outputs being visible before the second is built; network or indexer lag can cause the second step to be rejected as an orphan and require a retry.

**Public and permanent.** Every transaction, payload, message, name registration, and covenant is recorded permanently and publicly, and can be linked to the addresses involved and, through address reuse or external information, to you.

**Test networks.** Testnet-10 is available in Settings. Test coins have no value; test networks reset, fork, and break without notice.

## 4. Covenants and vaults

Toccata covenants let Kaspa lock assets under programmable conditions. The Software can create and operate TimeLock, Inheritance, Last Will, and Escrow instruments. Each is a set of on-chain rules that no one can override once funded, including the Developer, the counterparty, or you.

**Locked means locked.** A TimeLock cannot be opened early for any reason, including emergency, illness, death, or a change of mind. An Inheritance or Last Will instrument releases only according to its programmed conditions, which may not match your intent if you configured them incorrectly, if a beneficiary loses their key, or if the relevant timing assumptions change. There is no court, administrator, or support process that can alter a covenant's rules.

**Configuration errors are permanent.** A wrong beneficiary address, a wrong unlock time, a wrong amount, or a misunderstanding of the template's semantics becomes permanent when the covenant is funded. Review every field on the SureSign review. The Software fails closed when it cannot fully interpret a covenant template, but it cannot know whether the parameters you chose are the ones you meant.

**Escrow and arbiters.** An Escrow instrument releases funds to a party according to the actions of the buyer, seller, and a designated arbiter. The arbiter is a person you and your counterparty choose. The arbiter may be unavailable, negligent, dishonest, or colluding with your counterparty. The Developer is never the arbiter, is not a party to any escrow, and has no ability to release, refund, or adjudicate. Counterparties in an escrow may be anonymous and outside your jurisdiction; you have no recourse against them through the Software.

**Deal Desk messaging.** Deal Desk messages are encrypted to the recipient and recorded on the Kaspa network. Their content is private to the parties, but their existence, timing, size, and sender and recipient addresses are public and permanent. A counterparty can publish anything you send them. Messages cost network fees and may be delayed or reordered.

**Protocol and indexer dependence.** Covenant records are read from public indexers (for example, kascov) whose data may be delayed, incomplete, or wrong. A covenant that an indexer does not recognize still exists on-chain; a covenant an indexer shows may be misdescribed. Consensus-confirmed KAS balances and indexer-recognized token or covenant records are different kinds of facts, and the Software keeps them separate for that reason.

**Standards risk.** Toccata covenant scripts, KIP-20 covenant identifiers, and related standards are new. A future consensus or standards change could affect how existing covenants are interpreted, displayed, or spent.

## 5. The Igra EVM Layer

Igra is an EVM-compatible based rollup that sequences its transactions on the Kaspa Layer 1. The Software submits Igra transactions as Kaspa L1 carrier transactions and reads Igra state from Igra RPC nodes, explorers, and attester services.

**EVM Layer risks.** A EVM Layer depends on its execution layer, its attesters or sequencers, its bridges, and its relationship to the Layer 1. Igra may pause, halt, fork, upgrade, or change its rules. Its state, balances, and finality depend on infrastructure the Developer does not operate. A transaction accepted on Kaspa L1 may fail or revert when executed on Igra, in which case any L1 fee is still spent.

**Gas and reverts.** Igra transactions consume gas paid in iKAS. A transaction may revert after consuming gas. Quotes and simulations are indicative; on-chain conditions can change between the review and execution.

**Smart contracts.** Every Igra protocol the Software can reach is a set of smart contracts written by third parties. Smart contracts can contain defects, be exploited, be upgraded by their administrators, be paused, or behave differently from their documentation. The Software refuses to construct any Igra transaction whose contract and function it does not recognize, but recognition is not a guarantee of safety.

**Wrapped assets.** iKAS and WiKAS (wrapped iKAS) are representations of KAS on Igra, not KAS itself. Their value and redeemability depend on the bridges and contracts that back them.

## 6. Bridges

**Kat Bridge (KAS ↔ iKAS) is custodial.** When you move KAS onto Igra through the Kat Bridge custodial route, you send KAS to a vault address controlled by KAT Foundation and receive iKAS on Igra from that operator. When you exit, you lock iKAS on Igra and KAT Foundation releases KAS on Layer 1. During that process your assets are under the operator's control, subject to the operator's minimums, fees, pauses, vault rotations, liquidity, solvency, honesty, and continued operation. The Kat Token Bridge for KRC-20 tokens carries equivalent risks. The Developer has no control over any bridge and no ability to recover assets that a bridge fails to deliver.

**Bridge fees and minimums** are set by the bridge operator and change without notice. The Developer Fee is separate and is not a bridge fee.

**Other routes.** Other KAS ↔ Igra routes exist (for example, permissionless entry and the Igra community guardian exit) with different mechanics and timing. The Software names the route it is using. Do not assume one route's properties apply to another.

## 7. Decentralized exchange, staking, and lending protocols

**Zealous Swap.** Swaps execute against automated market maker pools. You face slippage, price impact, front-running, sandwich attacks, pool imbalance, low liquidity, and the possibility that a token is malicious or non-transferable. Infinity Pools and NACHO KAT staking are smart contracts controlled by their deployers, with emissions, rates, minimums, and rules that can change or be paused; staked positions can be locked, diluted, or lost to a contract defect.

**Kaskad.** Supplying assets to a Kaskad lending market exposes you to smart contract risk, interest-rate volatility, utilization risk (your assets may be borrowed and temporarily unavailable to withdraw), oracle failure, protocol insolvency from bad debt, and administrator actions such as pausing or freezing markets. Staked KSKD positions are subject to the protocol's locking and governance rules. The Software does not support borrowing; do not use other tools to borrow against positions you cannot monitor.

**Lynx.** Lynx liquid staking of IGRA issues stIGRA that represents a claim on staked IGRA. Its value depends on the vault's contracts, the accuracy of its exchange rate, its cooldown and redemption queue (redemptions are not instant and wait for on-chain funding and cooling), its performance fee on rewards, and the operator's ability to pause or place the vault in exit-only mode. Lynx is published by KAT Foundation; see the disclosed relationship in the [Third-Party Services and Non-Affiliation Notice](/argon-docs/legal/third-party-services.md).

**Yields are not guaranteed.** Every APY, APR, rate, and reward figure the Software displays comes from a third-party protocol or data feed, reflects past or projected conditions, is net of any fee the Software knows about and gross of any it does not, and can change at any moment. A yield may be denominated in a token that loses value faster than the yield accrues.

## 8. Mining pools

The Software can display statistics for a mining address from a mining pool's public API. The pool, its payout rules, its fees, and its statistics are the pool operator's alone. The Developer does not operate a pool and has no relationship with your mining income.

## 9. Websites, dApps, and connections

A website you connect to can request transactions and signatures. The Software shows you what is being requested, but a malicious site can craft a request that looks routine and is harmful: an unlimited token approval, a transfer to an attacker, a signature that authorizes a later spend, or a covenant with hostile conditions. WalletConnect pairings extend the same risk to dApps outside your browser. Connect only to sites you trust, review every request in full, revoke connections you no longer use, and treat any request you did not initiate as an attack.

## 10. Browser and device environment

A browser extension shares the browser with every website you visit and every other extension you have installed. A compromised operating system, a malicious or compromised extension, a phishing page that imitates the Software, a fake "Enclave" listing, a shared or synced browser profile, or physical access to an unlocked device can each defeat the Software's protections. Browser and operating system updates can change behavior the Software relies on. Only install the Software from the Developer's Chrome Web Store listing or from a release you have verified against the Developer's published hashes.

## 11. Software defects and security review

The Software is complex and is provided as is. It may contain defects that cause it to display incorrect information, fail to build a transaction, build a transaction that does not match your intent, or lose access to your data. As of the Effective Date, the Software has not been independently audited by a third party and no bug bounty is in operation. The Software's source code is public so that anyone may review it; publication is not a warranty that anyone has.

## 12. Third-party data

Balances, token lists, collectible images, names, prices, quotes, confirmation counts, and network statistics come from nodes, indexers, explorers, price feeds, and protocol APIs the Developer does not control. Any of them may be unavailable, slow, inaccurate, incomplete, stale, censored, or compromised. An indexer may fail to show an asset you hold or show one that does not exist. A price feed may be wrong, and the Developer Fee, which is sized from a public price feed with fixed bounds, may therefore vary. Do not make decisions solely on data displayed in the Software.

## 13. Privacy

Blockchain analysis can link addresses to each other and to real-world identities. Address reuse, Deal Desk messaging, names, collectibles, and interactions with identifiable services all reduce privacy. Every node, indexer, and provider you use sees your public addresses and your IP address. The Software's privacy features reduce but do not eliminate these exposures; a virtual private network, your own node, and disciplined address hygiene are your responsibility.

## 14. Discontinuation

The Developer may stop distributing or updating the Software at any time. Networks and third-party protocols may shut down, migrate, or change incompatibly. Because your assets live on the network under your recovery phrase, and because the Software is open source and standards-based, you retain the ability to recover in other software, but you are responsible for confirming compatibility and for acting before any dependency disappears.

## 15. Your acknowledgment

By using the Software you acknowledge that you have read and understood this Risk Disclosure; that you have the knowledge and experience to evaluate the risks of the networks, assets, and protocols you choose to use; that you are financially able to bear a total loss; and that you use the Software and undertake every transaction at your sole risk, without reliance on the Developer.

Questions about a network, protocol, bridge, pool, or dApp go to its operator. Questions about the Software go to <support@onargon.com> or [enclave.fider.io](https://enclave.fider.io/).