What Fyber is, and what it is not
Which category of financial product this is — an immutable CDP, not a bank deposit, not e-money, not a broker, not a margin account — and what follows from that.
Most disappointments with a financial product come from an assumption nobody wrote down: people reach for the nearest familiar category and expect its protections. This page names the category Fyber actually belongs to, and the four it is regularly mistaken for.
What it is: an immutable CDP
Fyber is a collateralised debt position protocol. You lock collateral in a contract, that contract mints you a debt token against it, you owe interest at a rate you set yourself, and you get your collateral back by repaying. Nineteen contracts, deployed once, with no proxy, no setter and no administrator role — the terms of the loan you open today are the terms it has for its whole life.
Everything below follows from that sentence. A CDP is not a custodian, not an intermediary and not a counterparty that can be called: the contract holds the collateral, and the rules that release it are the ones in the bytecode.
It is not a bank deposit, and fyUSD is not e-money
fyUSD is a debt token minted by a contract. It is not electronic money, not a deposit, and no entity guarantees its value or undertakes to redeem it at one dollar. No deposit-guarantee or compensation scheme covers it, because there is no institution for such a scheme to attach to.
What holds the price is mechanical rather than institutional: over-collateralisation, a swap module that exchanges fyUSD for USDG at a fixed price for as long as the reserve holds, and open redemption against collateral at oracle price. Those are the guarantees on offer, and they are the only ones.
Rules R-15.4.1 (5), R-4.4.1
It is not a broker, and you do not own shares
The collateral you deposit is a collateralised tracker certificate issued by Robinhood Assets (Jersey) Ltd, in the form of a Swiss-law ledger-based security. It tracks the price of a share. It is not the share.
You have no shareholder rights of any kind: no vote, no direct claim on the underlying equity, no relationship with the company whose ticker it carries. The instrument is secured, limited recourse: your claim is against the issuer and its collateral arrangement, not against the market. The issuer was incorporated on 23 October 2025, has no financial history and no credit rating, and states in its own documentation that it is not regulated.
Read Nature of the collateral in full before you deposit. It is the single most important page in this documentation.
It is not a fund, and the yield has a named payer
Depositing into a Stability Pool does not buy you a unit in a managed vehicle. Nobody allocates your money, takes a view, or reports a performance to you: the pool is a contract that receives interest and splits it pro rata among the addresses inside it.
That interest comes from one source — borrowers, through the rate each of them set, plus routed fees and liquidation gains — and it is minted straight to the pool as it accrues. The consequence is symmetrical, and you should hold us to it: if borrowers pay little, depositors earn little. What the interface shows is what the pool earned over the last 30 days, with the formula, never a target.
Rules R-10.1, R-10.2
It is not governed
No proposal, no vote, no delegate, no forum, no quorum. Nobody can raise your rate, lower a collateral ratio, add a collateral, whitelist an address, redirect the interest split, or pause your repayment — because the functions to do those things are not in the bytecode.
This is not a claim of decentralisation. One key exists for 365 days and it can close things. What it cannot do is change things. See Terms of Service for the exact scope.
The Backstop is not an insurance fund
There is a Backstop contract funded from a coded share of the interest flow, capped at 2% of total debt. It is a shock absorber for small bad debt, not insurance: nothing tops it up on demand, no underwriter stands behind it, and it can be empty.
If a branch takes losses that exceed the Stability Pool and the Backstop, the remaining bad debt is redistributed pro rata across the surviving positions of that branch only. Branches are isolated from each other. That is the design; it is not a promise that it will not happen.
Rules R-6.8.2, R-6.8.3, R-6.8.4
It is not a margin account, and not a leverage venue
A margin account is a relationship with a broker: the broker sets your rate and can reprice it, issues a margin call, decides when to close you out, and can usually be phoned. None of that exists here. You set your rate and nobody can raise it; there is no call, no notice and no discretion — the liquidation threshold is a number in the contract that applies at every hour of every day; and there is nobody to phone, by construction.
Nor is it built for leverage. There is no one-transaction leverage loop, no flash mint and no built-in looping. The maximum loan-to-value on the most liberal collateral is 80%, fixed in the constructor by a collateral ratio of 125% that cannot be relaxed afterwards. If your goal is directional leverage on an index, perpetual futures do that better, cheaper and without an oracle that respects market hours. We are not competing for that trade.
Rules R-0.3, R-5.2.1, R-5.7.1
It is not available everywhere
Access is restricted from the United States, the United Kingdom, Canada, Switzerland, and eleven jurisdictions listed as Prohibited Investors by the collateral issuer, plus jurisdictions under comprehensive sanctions. Using a VPN or Tor to get around that restriction is a breach of the terms. The European Economic Area is not restricted: the collateral's prospectus is passported into thirty EEA jurisdictions.
See Jurisdictions.
It does not give tax advice, ever
Nothing in this documentation, on the interface, or from anyone associated with the project is a statement about the tax treatment of anything you do here. Borrowing, repaying, liquidation, redemption and depositing may all have consequences where you live. That is between you and your own adviser.
It is not finished being tested
The contracts are new. They will carry a small amount of debt for a long time on purpose: total borrowing is capped at $2M for the first phase, individual positions at $50,000 per address for the first 90 days, and each branch's absolute ceiling opens in dated steps that lock permanently if bad debt is ever recorded. Those caps are not a marketing constraint. They exist because the honest estimate of new-contract risk is not zero.
Rules R-5.4.3, R-5.4.4, R-5.4.7
Last reviewed: 2026-09-07 · Spec v0.4