FAQ
Do I get the retained 20% back when I sell?
No. Retention is not an escrow. Once the hook retains 20% of your net sell as a covenant, it belongs to the mechanism. You exited; the debt's future — absorbed by a buyer or locked as LP — does not pay you back.
Is this just a disguised sell tax?
No. A sell tax quietly transfers value and does nothing structural. Covenant's retained slice becomes a visible, priced, expiring obligation that a buyer can absorb at a discount, and that turns into permanent liquidity if unabsorbed. The 3% creator tax is a separate, flat, disclosed protocol fee.
Is Covenant a bonding curve / reflection / burn / ponzi?
None of those. There is no bonding curve, no reflections to holders, no burn, and no yield promised from new deposits. It is a Uniswap v4 hook that changes what a sell becomes.
What does a buyer actually get?
When covenants are open, a buyer absorbs them before the pool at a 5–20% discount to the covenant's reference price — CVN below market for stepping in when others exit. If the queue is empty, a buy is just a normal pool swap (still paying the 3% tax).
Why 7 days?
It is a fixed, predictable settlement window — long enough for buyers to absorb, short enough that unabsorbed debt becomes productive liquidity reasonably quickly. It cannot be extended.
Who can settle an expired covenant?
Anyone. Settlement is permissionless — no keeper, no admin. The dApp exposes a "Settle expired"
button; developers call the hook's expireMany path.
Can the team change the rules or take the funds?
No. The contracts are immutable with no admin keys. Retention, discount, tax, and duration are
compile-time constants. The only privileged address is the immutable creator, whose power is limited
to receiving the 3% ETH tax and seeding the pool.
Is it safe / audited?
It is an unaudited testnet MVP. It has had an internal review (Slither, Mythril, 50 Foundry tests) but no external audit. Do not treat it as production-safe. See Security review and Known risks.
What network is it on?
The launch target is Robinhood Chain (an Arbitrum L2). It is not yet deployed — see Deployments.