D3
Duty3

Risk Disclosure

Last updated: June 8, 2026

Participating in Duty3 Vaults involves significant financial risk. You may lose the entire amount spent on tickets. Only participate with funds you can afford to lose.

1. Probabilistic Outcomes

Raffle tickets give you a statistical chance of winning a prize — they do not guarantee a return. Each ticket has an equal probability of being selected. The more tickets in a Vault, the lower the probability that any individual ticket wins. There is no strategy that increases your chances beyond purchasing more tickets.

Non-winning ticket costs are not refunded. The expected monetary value of a single ticket purchase is less than its cost in the general case.

2. Cryptocurrency Price Volatility

Prizes are denominated in crypto assets (WETH, WBTC, USDC). The fiat value of these assets can fluctuate significantly between the time you purchase tickets and the time a winner is drawn. A prize worth $10,000 at ticket purchase time may be worth substantially more or less at the time of distribution. Duty3 does not hedge, insure, or guarantee the fiat value of any prize.

3. Smart Contract Risk

Duty3 Vaults are governed by immutable smart contracts deployed on Arbitrum One. Once a Vault is created, its parameters (prize amount, ticket price, ticket count, duration) cannot be changed. Risks include:

  • Undiscovered vulnerabilities — despite thorough testing, smart contracts may contain bugs that could be exploited, resulting in loss of funds held in the Vault.
  • Upgrade incompatibilities — changes to the Arbitrum network or underlying EVM behavior could affect contract execution.
  • Dependency risk — the protocol depends on Chainlink VRF and OpenZeppelin libraries. Failures in these dependencies could affect Vault operation.

4. Chainlink VRF Risk

Winner selection relies on Chainlink Verifiable Random Function. If Chainlink fails to deliver a randomness response within 48 hours of the VRF request, anyone may call the emergency abort function, which transitions the Vault to a refund state and returns ticket costs to buyers and the prize to the creator. While this safety net is in place, delays in VRF fulfillment may lock funds for up to 48 hours.

5. Vault Non-Completion Risk

If a Vault does not sell out before its deadline, no draw takes place. The creator may then call enableRefund(), returning the prize to themselves and allowing ticket buyers to reclaim their ticket costs. In this scenario:

  • Buyers do not win any prize.
  • Buyers recover their ticket spend but receive no compensation for the opportunity cost.
  • Gas fees paid during ticket purchase are not refunded.

6. Network and Gas Risk

All transactions require payment of gas fees on Arbitrum One. Gas fees are non-refundable regardless of transaction outcome. Network congestion or outages may delay transactions or cause them to fail. A failed transaction still consumes gas.

7. Wallet and Key Management Risk

Duty3 is non-custodial. You are solely responsible for the security of your private keys and seed phrase. Loss of access to your wallet means permanent loss of any tokens or unclaimed winnings held in that address. We cannot recover lost keys or reverse on-chain transactions.

8. Regulatory Risk

The legal status of on-chain raffles, prediction markets, and similar activities varies by jurisdiction and may change over time. Regulatory action could restrict access to the interface, delist assets, or require operational changes. You are responsible for understanding and complying with the laws applicable to you.

9. Liquidity Risk

Prize tokens (WETH, WBTC, USDC) are liquid assets on Arbitrum One. However, market conditions can change. There is no guarantee that you will be able to sell or exchange winnings at a favourable rate at any given time.

10. No Financial Advice

Nothing on the Duty3 interface, in its documentation, or in communications from the Duty3 team constitutes financial, investment, legal, or tax advice. You should consult qualified professionals before making decisions about participating in on-chain raffles or holding crypto assets.

11. Acknowledgement

By using the Service you acknowledge that you have read and understood this Risk Disclosure, that you accept all risks described herein, and that you are participating voluntarily with funds you can afford to lose.