Key Risks and Mitigations
The following table outlines primary risks associated with SilverTimes, along with corresponding mitigation strategies. These are informed by comprehensive scenario analysis, including stress tests for extreme market events where silver prices fluctuate sharply or basis conditions deteriorate.
Rollover Risk
Costs and potential losses from rolling over expiring traditional futures contracts, especially in contango markets where future prices exceed spot, increasing carrying expenses.
Diversified contract maturities to minimize rollover frequency; revenue reserves to offset carrying costs; governance adjustments to shift toward T-bills if contango persists with costs exceeding 5% annualized.
Liquidity risk
Insufficient depth in spot, futures, or redemption channels may widen spreads and slow redemptions.
Multiple venues/LPs, RFQ backup, redemption windows with SLAs, inventory buffers.
Smart contract risk
Bugs or exploits in minting, redemption, or accounting contracts.
Formal audits, bug bounties, time‑locks and pause roles, staged rollouts, on‑chain monitors.
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