Risks

You can lose money borrowing, lending or buying on MLKY. Please read this before you start, and begin with an amount you can afford to lose.

If you borrow

The biggest risk is losing your card. Miss the deadline and a MLKY Pool loan goes to auction, and with a private request the lender takes the card and nothing comes back to you. Once the grace period ends the sale can start at any moment, so repay early rather than on the last day. An extension can also be refused if your card's value has dropped. If you can't repay goes through all of this.

If you lend

Withdrawals can wait while the pool's money is lent out. Defaults can cost you, because a card nobody buys at auction is a loss for the pool until it's sold, and a later sale may not cover the loan. And earnings aren't fixed, since cash that isn't lent out earns nothing. Risks for lenders has the details.

If you buy at auction

The price comes from our valuation, which is an estimate, so check the card yourself before you buy. Getting the physical card is handled by the company that tokenized it, under its own rules and fees.

Risks everyone shares

Software

MLKY is new software running on Solana, and it hasn't had an outside security audit yet. Software can have bugs, and a bug could cost you money.

The companies that tokenize cards

Collector Crypt and Phygitals hold the physical cards and keep some control over the tokens they issue, under their own terms, and MLKY can't override that. Phygitals in particular can move, destroy or freeze any of its card tokens, even one backing a loan. If one of these companies fails, loses a card or uses that control, a token and any loan against it could lose their value. Risks for lenders explains what that means for the pool.

Card values

Graded card prices move, sometimes fast. Our valuations are estimates, and a card can sell for less than the value shown in the app.

USDC and Solana

Loans are in USDC, a stablecoin that could lose its value against the dollar or be frozen by its issuer. Solana itself can slow down or stop, which could delay a payment you need to make on time.

MLKY's app and settings

We can pause parts of the app in an emergency, and while a pause is on, withdrawals and some other actions have to wait. If the app is unavailable near your deadline, you might not be able to repay through it in time, which is one more reason to repay early.

We can also change our fees and settings. The docs and the app always show the current ones.

Your wallet

Whoever has your wallet's seed phrase controls your cards and your money. We can't recover a lost wallet or reverse a transaction you signed.

Laws and taxes

The rules on crypto lending and tokenized collectibles vary by country and keep changing. It's up to you to use MLKY only where it's allowed and to handle your own taxes. Nothing in these docs is financial, legal or tax advice.