This token oversees and secures the governance of the protocol. However, the activities within the protocol are implicitly linked with the governance token. The performance, legal and regulatory status of these activities may change at any time which could adversely affect the governance token value.

The token may derive its value from reliance on programmable smart contracts. The presence of software bugs remains a possibility even following a thorough code audit and can lead to unintended and potentially harmful outcomes, such as funds being lost, stolen, or locked in the contract.

Stablecoins aim to link their value to a specific currency or index. However, these pegs have historically been challenged, leading to potential or realised losses for holders. Stablecoins rely on reserves that may not be verifiable or accessible, and redemption mechanisms may not perform as expected.