Disclosures

Forest Road Vault is a KYC-gated, legally-wrapped real-world-asset credit protocol. Everything on this site describes a system running on test networks only, with no real capital, no live instruments, and no offer of any kind.

Token characterization is a matter for counsel. The protocol's instruments — USDfr, sUSDfr, GROVE, and sGROVE — have the characterization set out in the definitive legal materials; nothing on this site independently claims they are or are not securities. A written securities-counsel opinion is a hard, blocking gate before any mainnet deployment, alongside external smart-contract audits, an executed off-chain legal wrapper, and an economic review of protocol parameters.

Yield is variable.sUSDfr passes through the net performance of the loan book and reserves via its exchange rate. At launch, 10% of realized gross interest goes to the protocol; sUSDfr then charges 10% of conservative protocol-wide high-water-mark profit. Timelocked governance may vary performance prospectively up to 20%. Management starts at 0% and may vary prospectively up to 2% annually in v1. Each change crystallizes the old rate first. Vault-level fees are paid through share dilution. The high-water mark is global, not personal to a participant's entry price, and crystallized fees are not clawed back after a later loss. No fixed return is promised, and depositors bear underlying credit performance, subject to the documented loss cascade — a structural ordering of losses, not a guarantee against them.

Governance is Forest-Road-controlled at launch. The full governance machinery exists on-chain, but Forest Road holds effective control of parameters and upgrades initially. Progressive decentralization is a roadmap item, not a present fact.

One vertical is a related-party facility. The digital-assets collateral class finances Forest Road's own trading subsidiary. That conflict of interest is disclosed plainly here and on the risk page, is subject to on-chain concentration limits and arm's-length-terms review, and is an explicit item in the launch economic review.

Nothing on this site is legal, tax, accounting, or investment advice.