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Risk · Read first

Risks风险

Read this before you use Sprout. You can lose everything you put in.

Sections 09~2 min read
§01

Memecoins

Most coins launched anywhere, including on Sprout, lose most or all of their value. Prices can collapse in seconds. Anyone can launch a coin with any name or image; a coin on Sprout is not endorsed, checked or vetted by Sprout.

Holder rewards, payouts and burns do not make a coin worth anything. Past activity on Nodes or Stats says nothing about the future.

§02

Shared liquidity backs no coin

The Grove is one $SPROUT/ZEC pool. It is not liquidity for your coin and does not protect anyone from losses. A coin's own liquidity is only what Flap's curve and, after graduation, its PancakeSwap pool hold.

§03

Smart contracts

  • Sprout's contracts are unaudited. They may contain bugs that lose funds.
  • Sprout coins depend on Flap's contracts. Flap's Guardian can upgrade all Sprout vaults through their beacon.
  • Passkey accounts rely on BNB Chain's P-256 signature precompile and on your device's passkey implementation.
§04

Bridges and pegged ZEC

  • Moving ZEC between Zcash and BNB Chain relies on NEAR Intents 1Click and the parties behind it. It can be slow, unavailable, mispriced or fail.
  • BEP-20 ZEC (Binance-Peg ZEC) used for payouts and the Grove is a token backed by Binance's custody, not native ZEC. If that peg fails, it can lose its value.
  • Deposits sent short, late, twice or to an expired address may be refunded with fees deducted, or lost.
§05

Passkey loss

Your passkey is the only key to your Sprout Account. If you lose it — a lost phone without sync, a deleted credential, a wiped security key — the account and its funds are gone permanently. Sprout cannot recover it.

§06

Services and trust

  • The relayer can go down; you then cannot use your Sprout Account until it is back (your funds stay in the account).
  • The keeper can go down, delaying payouts, rewards, burns and liquidity runs. For Zcash payouts it chooses the 1Click deposit address; a faulty or compromised keeper could misdirect those pots (each bridge call is capped at 1 BNB, but calls can repeat). Every bridge is logged on-chain so this can be detected. It also computes holder-reward snapshots when the fallback distributor is used.
  • The shield forwarder holds ZEC for minutes while forwarding. During that window your ZEC is in Sprout's custody; downtime delays shielded payouts.
§07

Privacy

  • Everything on BNB Chain is public, including your Sprout Account's activity.
  • Bridged ZEC is not private: 1Click uses transparent Zcash addresses, and refunds go to your transparent address.
  • Only the final shielded payout leg is private. Sharing a viewing key reveals all payments to that address.
§08

Tax tokens

Every Sprout coin charges 2% on each buy and sell, plus Flap and DEX fees. Frequent trading costs more than it seems. Tokens on the Terminal may have other taxes up to 5%, and other mechanics Sprout does not check.