> For the complete documentation index, see [llms.txt](https://docs.usecanopic.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usecanopic.com/risk/issuer-exposure.md). # Issuer exposure Behind each tokenized security stands an issuer. Here is what that counterparty means and how Canopic manages it. A Stock Token gives you a claim, not a share. In legal terms, Robinhood Assets (Jersey) Ltd is the issuer and the instrument is debt in token form, linked to a US share kept by a custodian. That distinction applies to every position traded or held on Canopic, so we handle it as a risk in its own right. ## Where the issuer comes into play 1. **Credit.** In an issuer insolvency, holders become creditors with a claim on the shares in custody. They might recover only part of their value, and recovery might take a long time. 2. **Freezes and restrictions.** Under its terms, the issuer may in certain situations freeze, suspend or restrict tokens. If it did, trader balances and vault inventory alike could be locked. 3. **Redemption.** Only KYC'd holders can turn tokens back in to the issuer. Canopic's design never needs that step, because its prices come from the oracle's view of the secondary market. 4. **Regulatory action.** Supervisors might order new terms, a withdrawal from some countries, or an end to issuance altogether. ## Canopic's approach ### Disclosure before anyone trades On each listing page you will find who the issuer is, what kind of legal instrument the token is, and what our bytecode review concluded. Before a first swap or a first deposit, traders and LPs see a plain-English summary of how the debt claim works. No venue can engineer issuer risk away, but a venue can make sure nobody holds it without knowing. ### Reviewing the token's code Robinhood states that its Stock Tokens cannot be frozen on-chain. We check that claim ourselves instead of taking it on trust. Before a market launches, a reviewer reads the token's deployed code and looks for four privileged powers: freezing, pausing, blacklisting and forced transfers. The findings go on the market's listing page, and any power that is present affects the market's tier and caps. ### Attestations of reserves Some markets have a Chainlink Proof-of-Reserve feed (or an equivalent attestation) for the shares held in custody. In that case `OracleAdapter` consumes it and the listing page puts it alongside the market. When there is none, the listing page says that too. ### Caps and a single concentration figure Volume and TVL caps bound how much exposure each market can accumulate. Because one issuer stands behind every Stock Token, the [Ledger](/walkthroughs/use-the-ledger.md) also shows one headline number: the aggregate inventory, across every vault, that rests on Robinhood Assets (Jersey) Ltd. We state the concentration directly so that no one has to calculate it. ### Isolation between markets Each market is fully self-contained. A problem at the issuer, whether it hits a single Stock Token or the whole set, cannot reach a market backed by gold or bridged treasuries. Adding further issuers is a stated aim on [Next asset classes](/assets/next-asset-classes.md). ## For traders and LPs Holding a Stock Token in your own wallet and holding it through a vault share come to the same thing: a claim on the custody arrangements of a regulated broker, not ownership of the tracked share. Should the issuer fail, the contracts would still work as intended and in-kind withdrawals would still go through. What you withdrew, however, would be that claim, and its value would become a legal question rather than a market one. Canopic limits this exposure with caps and disclosure. You may reasonably choose to be more cautious still. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. 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