Docs/Reference
Risk
The risks of holding, staking and redeeming $KYZN, each with its mechanism.
- Starting FDV
- About 3.3 ETH
- Trade tax
- 4% each way
- Backing
- Not a floor
- Stock tokens
- Barred to U.S. persons
Specification v1.4 · Revised 24 September 2026 · 9 sections
#The pool sets the price
$KYZN is a digital asset, and its price can fall to zero. Trades in the Uniswap v2 $KYZN/WETH pool set the market price. The Reserve does not support that price; it honours only redemption at backing minus 2%.
The pool starts with 900,000,000 $KYZN against 3 ETH, a starting fully diluted value of about 3.3 ETH. With 3 ETH of liquidity, a single trade can move the price sharply.
p1 = p0 × ( ( E + d ) ÷ E )²
- p0
- Price before the buy
- E
- ETH in the pool before the buy
- Δ
- ETH added by the buy
- Starting pool
- 3 ETH · 900,000,000 $KYZN
- Buy of 0.05 ETH
- Price up about 3.4%
- Buy of 0.1 ETH
- Price up about 6.8%
- Buy of 0.3 ETH
- Price up about 21%
Illustrative constant-product arithmetic, before the pool fee. A sell moves the price down by the same rule.
The 4% tax applies to every buy and sell. A buy followed by a sell loses 1 − 0.96 × 0.96 = 7.84% of its value to tax, before pool fees and price impact. Each tax swap is itself a sell of up to 2,500,000 $KYZN into the pool. See Trade tax.
#Backing is not a floor
Backing per $KYZN is Reserve value divided by total supply. It grows as trades send 2% of their value to the Reserve. It sits below the market price early on and can stay there.
- Trade volume
- 100 ETH
- Reserve share, 2%
- 2 ETH
- Backing added per $KYZN
- 2 ETH ÷ 1,000,000,000 = 0.000000002 ETH
Illustrative. The Reserve receives ETH from tax swaps at the pool price, and its value then moves with chip equity and ETH.
backing × 0.98 > price × 0.96
- backing
- Backing per $KYZN
- price
- Market price of $KYZN in the pool
- 0.98
- Redemption after the 2% fee
- 0.96
- A sell after the 4% tax
Redemption binds only while the price is below about 1.02 times backing, before pool fees and price impact. Above that line, a sell pays more, and redemption does not support the price. See Redemption.
Backing itself can fall. It is the market value of chip equity and ETH, priced by Chainlink, and each of those assets can decline. Rotations follow published rules and do not aim to outperform any market.
#Locks end on fixed dates
The locks run for fixed terms. After the UNCX lock ends, it no longer prevents the liquidity from being withdrawn. Team tokens can be sold as they are released.
| Point in time | Event |
|---|---|
| 30 minutes after trading is enabled | The 2% max wallet ends |
| 6 months after deployment | The team cliff ends and linear release begins |
| 12 months after locking | The UNCX liquidity lock ends |
| 18 months after deployment | The team stream is fully released |
From month 6 to month 18, the team stream releases about 8,333,333 $KYZN per month.
#Code and oracles can fail
The contracts are self-reviewed and tested. Testing lowers the chance of a defect; it does not remove it. A defect can lose funds, and losses from a defect may not be recoverable.
The owner keeps four powers: lower the tax, change the development wallet, set the swap threshold between 0.01% and 0.1% of supply, and enable trading once. See Security model.
Chainlink classes the tokenized-equity feeds as high risk. A wrong, stale or paused price misstates backing and can hold up Reserve purchases. Redemption pays in kind and does not depend on the price. See Price feeds.
The protocol runs on third-party contracts: Uniswap v2, UNCX, Sablier and Chainlink. A defect in any of them affects Kyzen Network. The Robinhood Chain sequencer screens every transaction against a restricted-address list, so a transaction can be excluded before it executes.
#The issuer controls stock tokens
Robinhood Assets (Jersey) Limited issues the stock tokens the Reserve holds. It keeps four powers that no Kyzen Network contract can override.
| Issuer power | Mechanism | Effect |
|---|---|---|
pause / unpause | Halts a stock token until unpaused | The Reserve is built to tolerate a paused token: a redemption pays every other asset at once and records the paused asset's share as a claim the redeemer collects once it unpauses. A paused asset does not move while the pause lasts. |
adminBurn(address,uint256) | Burns stock tokens from any holder | A burn from the Reserve lowers backing for every $KYZN. A burn can also reach tokens received by redemption. |
pauseOracle | Pauses the feed of a stock token | Backing uses the last published price, and purchases need a price inside the staleness bounds. |
| Multiplier updates | Adjust a token for a corporate action | The feed pauses during the action. The feed price already includes the multiplier. |
Stock tokens are ERC-20 tokens behind a beacon proxy, so their implementation can change. The implementation checked on 24 September 2026 has no allowlist, blocklist, freeze or canTransfer check.
#Stock tokens bar U.S. persons
Robinhood Stock Tokens may not be offered, sold or delivered to U.S. persons. Further restrictions apply in Canada, the United Kingdom and Switzerland.
Redemption delivers stock tokens. The chip-equity payout mode delivers NVDA or AMD. Both put stock tokens in the wallet that redeems or claims.
The site applies no geoblock. The terms of use govern access and publish on the legal page following counsel review.
#Staking rewards follow volume
Stakers receive 1% of every trade, as ETH. With no trading, the funding is zero. Rewards are ETH amounts, and ETH can lose value.
A funding starts only when someone calls notifyRewards(). Anyone can call it once every 24 hours. Until it is called, the collected ETH does not stream.
| Payout mode | Risk |
|---|---|
| ETH | The value of ETH can fall between funding and claim. |
| Compound | Buys $KYZN from the pool at the pool price. The buy moves the price like any other buy. |
| Chip equity | Opens after counsel review. Buys NVDA or AMD in market hours only, and the tokens carry the stock-token restrictions. |
The app shows rewards as ETH amounts from on-chain data and publishes no rate or percentage projection. Staked $KYZN is unstaked before redemption. See Staking.
#The Gateway depends on hosts
The Gateway serves open-weight models through third-party hosts whose terms permit resale, such as DeepInfra or Novita. A host can change its price, its terms or its availability.
The Gateway price is the host dollar rate plus a 10% margin, priced in $KYZN. A change in the host rate changes the $KYZN price of every request.
Each settlement window, the Gateway sells the $KYZN needed to pay the host bill and burns the rest. That sale is a sell of $KYZN. See Gateway.
An API key is bound to a wallet. Anyone holding the key can make requests paid by that wallet.
#Synthetics can be liquidated
A synthetic position needs a 150% collateral ratio, in $KYZN plus USDG, with at least 50% in $KYZN. Below 150%, the position is liquidated by Dutch auction and a liquidation penalty applies.
At least half the collateral is $KYZN, so a fall in the $KYZN price lowers the ratio directly.
- Synthetic minted
- $1,000.00 of value
- Collateral posted
- $750.00 in $KYZN + $750.00 USDG = 150%
- $KYZN falls 20%
- $600.00 + $750.00 = $1,350.00
- New ratio
- 135%, below the 150% minimum
- Result
- Liquidated by Dutch auction
Illustrative. Assumes the synthetic price is unchanged.
GPU-hour markets price from public rental spot markets, hourly, so the oracle lags the spot market between updates. DRAM, HBM4 and CoWoS price from the Kyzen Network attested feed. Its published methodology, multiple sources and dispute window are the checks on it.
Fee levels for minting, borrowing, liquidation and swaps are set before the markets open. A market opens only when its tests are green and its feed methodology is published. See Silicon markets.