The Clearstar cbAssets Vault allocates exclusively to Morpho markets on Base whose collateral is issued or bridged by Coinbase. This gives depositors concentrated exposure to a single issuer and custodian, which carries risks distinct from our diversified vaults. Most collateral consists of Coinbase wrapped assets, each backed 1:1 by the underlying asset held in Coinbase custody and redeemable through a Coinbase account. Their value depends on Coinbase’s safekeeping of the reserves, its minting and redemption process, and the integrity of the token contracts. cbETH also carries Ethereum staking risks, such as slashing and withdrawal delays. SOL and JitoSOL reach Base through the Base-Solana bridge and depend on its security; JitoSOL additionally depends on the Jito staking protocol.

Collateral prices are provided by third-party oracle feeds. Some of these feeds may price a wrapped or bridged token at the market price of its underlying asset, in which case they would not reflect a loss of backing in the token itself, for example after a custody incident, a halt in redemptions or a bridge failure. Clearstar does not control these feeds and accepts no responsibility for their accuracy, availability, or any change in their methodology.

Liquidations depend on on-chain liquidity for each collateral asset on Base, which can be limited for the smaller and newer wrapped assets, and on liquidators being able to redeem through Coinbase. Adverse developments such as a custody or bridge failure, a suspension of minting or redemption, oracle failure or manipulation, regulatory action affecting Coinbase, or a sharp decline in liquidity could materially affect vault performance and may lead to bad debt, liquidations, or withdrawal constraints in the underlying Morpho markets.

Before depositing, we invite users to consult our Risk Framework for an in-depth overview of how we evaluate market and counterparty exposures and the safeguards we keep in place. Additional information on the due diligence and identified risks of selected collaterals is available on our Reports page. By depositing in this vault, you confirm that you have read and accepted our Terms of Service. All Vaults under the Clearstar Labs brand name are curated and operated by NovaFusion SA.