How your funds work.

One pooled strategy. Returns and access to cash depend on the loans the strategy holds.

One pool, one share price

Your position is shares of the strategy times the share price. Every share holds the same part of the cash, the external lending and each loan on the book, including loans funded before your deposit. No loan is ever priced: each is carried at what the strategy paid for it until it repays, is refunded or falls overdue. USDG figures for external shares are estimates.

Overdue principal is excluded; recovery rights stay with its holders

Unpaid matured principal is excluded from share value. Balance-changing transactions record overdue loans before pricing shares. Holders recorded at write-down keep the rights to later recovery even if they withdraw their shares. Repayment during grace and default collateral go into side pockets for those holders. New deposits do not buy existing recovery rights. Recovered tokens stay in their original form. LP positions are unwound into their underlying assets, including native ETH where applicable, with a recovery pocket for each asset. Recoveries are never sold or priced by the strategy. You may end up holding the collateral instead of USDG. Memes can go to zero. If the borrower walks away, you hold it.

Withdraw available liquidity or queue without an immediate withdrawal

Immediate withdrawals use cash and the reserve’s available liquidity. A queued withdrawal reserves your shares, is priced when served, and takes priority over new loans. You can queue the whole amount if an immediate reserve withdrawal is unavailable. Loan funding windows, reserve restrictions, defaults and settlement delays can extend the wait. There is no guaranteed maximum wait or withdrawal of committed principal on demand.

Gage controls future settings

Gage operates the curator through one deployment wallet and also runs the keeper. Curator changes have no timelock. Within contract bounds, this wallet can change lane weights, admitted tokens, price ceilings, the strategy’s deposit cap and the fee for future loans, approve or revoke loans, move the external lending back to cash, and pause new investment. Raising the deposit cap lets the strategy grow past the figure published when you deposited; lowering it only refuses new deposits and never touches what you hold. A compromised wallet could select poor loans within those limits. It cannot withdraw your shares or change a funded loan’s terms or fee.

Fees apply to new highs only

The curator fee applies to realized loan profit that lifts the share price above the strategy’s high-water mark. A loan’s fee rate is fixed when it is funded. Losses lower the price below the mark, so nothing is charged until the whole strategy has recovered them, and the same gain is never charged twice. The curator fee does not apply to deposits, withdrawals, collateral claims, external lending returns or rewards. Network costs and the external provider’s own fees still apply.

External lending can change

Morpho Steakhouse USDG is a separate dependency. Its shares can lose value, and redemption depends on available liquidity. Its governance can change fees, withdrawal gates and liquidity routes. A preview does not reserve liquidity. USDG and reserve shares can also have transfer restrictions, and USDG can be paused or upgraded by its issuer.

Lane caps are limits

Lane caps are limits, not allocation promises or a guarantee of diversification. They restrict outstanding loan principal against strategy assets when a new loan is funded. Lowering a cap does not unwind existing loans. A token price ceiling is an underwriting limit, not a market valuation. The categories are Stocks, Meme and LP, and their caps can total at most 100% of strategy assets. LP loans follow the collateral registry’s position policy.

Realized profit unlocks over days

Realized profit becomes withdrawable over a fixed window. New deposits pay the full asset price, including profit already realized but still unlocking. Future outcomes of performing loans remain pooled, including loans funded before a deposit. Served USDG, recovery pockets and token rewards have separate claim paths, also visible from Portfolio and Rewards. Transfer restrictions or contract failures can delay delivery.

Review the current curator fee, external lending and strategy limits before depositing. Keeper or network outages can delay settlement and withdrawal; recovery controls still depend on the contract’s conditions.