Like every blockchain product, the RHT also has a risk due to its SmartContract. It has been painstakingly programmed and tested many times; it was also checked externally on several occasions. Further checks will be made in the future; because security is very important to me. Nevertheless, the risk of the SmartContract can never be reduced to 0, no matter how many audits are made. It is therefore important for us to point out this risk and to provide further information.
The SmartContract is structured as follows: The externally communicating and therefore vulnerable part of the program code consists 100% of the standardized and tried and tested standard SmartContracts. However, all the extra functions that distinguish the RHT from a standard token cannot be addressed from the outside and are therefore not vulnerable. Therefore we can say that the RHT is as secure as any standard ERC-20 token as far as its SmartContract is concerned.
In addition, the RHT has a risk of loss of 4.5%. This 4.5% is the portion that accrues as a fee in the Mintin process. The risk becomes real if the token is not moved, i.e. the increase in value stagnates.
BUSD is a 1:1 USD-backed stablecoin approved by the New York State Department of Financial Services (NYDFS), issued in partnership with Paxos. Each BUSD is deposited 1:1 with US dollars in a bank account. Both the SmartContract and Binance can fall victim to cyber attacks. And BUSD's margin account can also be affected by crime. The consequences and consequences of this cannot be discussed in depth here in this context. At this point, I just want to point out that there are risks that should be taken into account. However, I cannot and do not want to give any investment recommendation for the BUSD or the RHT, so I advise you to conscientiously deal with the respective product information and the associated risks and weigh them up with each other before making a purchase decision.
The RHT is connected to the Binance Smart Chain, i.e. it only exists as long as the Binance smart chain also exists. In addition to possible security gaps in the BSC, there is also the question of whether a negative economic situation at Binance could also affect the blockchain. This question cannot be clarified here, but it should be considered before making any purchase decision and is therefore mentioned here. The BSC is currently operated by 21 validators. Anyone can become a validator for the BSC upon meeting the requirements, provided they are approved by Binance. It is therefore conceivable that the BSC could continue to exist without Binance. Should future developments of the BSC or the BUSD give cause for concern, I reserve the right to re-evaluate the choice of blockchain and stablecoin.
List of validators: https://bscscan.com/validators
As shown in the course of the whitepaper, a token is basically linked to a project. Of course, this does not apply to every token; the RHT is one such exception. If the application/website is not accessible, for whatever reason, or the project is terminated, the stored values remain secured in the SmartContract and, above all, accessible to investors. This also applies to the minting and redeeming of RHT, which is carried out solely by interacting with the SmartContract. The RHT is a decentralized token. In this respect, switching off the website / dissolving the project does not represent an actual risk, but only a theoretical one.
We recommend every investor to download APPENDIX I + II to have a guide at hand to guide you through the mint and redeem process using SmartContract.