ParaapeRisks
What can still go wrong. These are open, not solved.
Recording liveness
If nobody records during a crash, a real drop can be impossible to prove. Purchases and settles record as a side effect, and the keeper records on a timer, but a gap in samples is still a gap. Storage-proof settlement, which would read the pool without a keeper, is not built.
Sampled average
Price between two recordings is treated as constant. A move that happens and reverts inside the 30-second gap can be invisible. The clamp also delays a very large move across more than one sample.
Split wallets
The holding check sees one buyer. A bag split across wallets that never transfer to each other is not linked on-chain. Challenge cannot take an off-chain allegation as evidence.
Parameters are not calibrated
Drops, alpha, the holder limit, the entry guard, and the premium curve are initial values. They are not a fit to historical Robinhood Chain rugs. A premium can be too cheap or too expensive until they are.
Cold start
A market with no USDG cannot sell cover. Nothing in the protocol forces underwriters to show up.
Old vaults
Rules in this site describe the current source. Vaults from an older factory keep that factory's bytecode, including the older challenge. Read the vault you are using.
Not a profit promise
Cover pays a named drop from the entry average, capped by what you bought. It does not hedge a slow grind that never reaches the line, a wick that recovers, or a sale of the bag.