# Risks

**Supply (vesting and unlocks):**

* **Unlock windows.** From month 12 investor and advisor allocations begin to unlock; from month 24, team tokens. The **24–36 month period** is expected to see the largest inflow of tokens into circulation.
* **DAO Treasury.** After 24 months, the staked Treasury may partially unlock by DAO decision — creating risk of oversupply.
* **Documentation inconsistencies.** For the Team pool, vesting terms differ across the whitepaper. In the table: “24-month cliff + 24-month linear,” in the text: “24-month cliff + 3-year linear.” This complicates circulation forecasting.

**Cash flows:**

* **Buyback/burn not fixed.** Fees are converted into STON, but the shares for burn/incentives are determined by DAO, and parameters may change.
* **Referral payouts.** In DEX v2, up to 1% of fees go to referrers, reducing the share directed to buyback/burn and the protocol budget.
* **Dependence on volume.** LP and protocol income is based on trading fees; a drop in volume immediately reduces STON buybacks and burn rates.

**Staking:**

* **GEMSTON.** Issuance depends on staking terms; its value and “sinks” are set by DAO. Without clear utility, dilution risk exists.
* **ARKENSTON (votes).** With low participation, influence may shift disproportionately toward large, recent stakes.

**Liquidity and market:**

* **Impermanent loss and LP outflows.** Volatility and the end of farming campaigns may reduce LP profitability, lower TVL, and increase slippage.
* **Reliance on TON.** Failures in the base network/routing would directly hit trading volumes and fee flows.

**Technology and governance:**

* **Contracts.** Bugs in the fee converter/distributor, staking, or pools present risks to fee flows, burning, and circulation.
* **Governance.** Low DAO activity or weak processes (no timelocks/quorums) increase the chance of decisions that amplify supply pressure.

***

#### Conclusion

**Key focus areas:**

* Unlock calendar (**12/24/36 months**)
* DAO settings (burn, incentives, referral rates, treasury spending)

Transparent rules, limits, and monitoring of these parameters are the foundation for controlled circulation and sustainable demand for STON.