Risks
You can lose money. Here's how, in plain terms.
- Price moves. If the stock moves a lot, your share can be worth less than if you had just held USDG or the stock.
- The agent can be wrong. Its rules limit the damage, but it can still make a poor call.
- Price jumps. Stock tokens trade around the clock, so prices can jump when US markets open or on big news.
- Young markets. These pools are still small, and big trades can move prices sharply.
- Stock token rules. Stock tokens are issued by Robinhood, and they may not be available where you live (for example, to US persons).