Understand the risks before you put money in Moni Earn
This Risk Disclosure is part of the Moni Earn Terms. Read it before you add money to Moni Earn (“Earn”). It is written in plain language on purpose. If anything here is unclear, do not use Earn until you have asked us.
Version 1, October 2026.
Earn is not a bank deposit. Your money is not in a bank. It is lent to borrowers through Morpho, a lending protocol on the Base blockchain, inside a vault managed by Gauntlet.
Earn is not insured. No government, deposit insurance fund or guarantee scheme in any country covers money in Earn. Paymentstack Inc. (“Moni”) does not guarantee it either.
The rate is not a promise. The rate the app shows is the recent net rate the vault has been paying, after Moni’s share. It changes every day. It can go down, and it can be zero. A rate you saw yesterday says nothing about tomorrow.
You can lose money. Your Earn balance can fall below the amount you put in. Only put in money you can afford to leave in Earn and, in the worst case, lose.
Borrowers who do not repay. Borrowers in the lending markets put up crypto assets as collateral. If the value of that collateral drops faster than the protocol can sell it, a loan can go bad. When that happens the vault’s value drops, and so does your balance.
A failure in the software. Your money passes through four pieces of software on the blockchain: the Earn contract that Moni deployed, the Gauntlet vault, the Morpho protocol, and your own wallet contract. A bug or an attack on any of them could lose some or all of the money in it. Losses on a blockchain are usually permanent.
USDC losing its value. Earn holds USDC, a digital dollar issued by Circle. If USDC stops being worth one dollar, your balance is worth less in dollars. Circle can also block USDC held at specific addresses.
Problems with the Base network. If the Base blockchain stops, slows down or changes its rules, you may not be able to add or withdraw money until it recovers.
Problems with the wallet infrastructure. The Moni app uses wallet infrastructure from Privy and Coinbase. If that infrastructure fails, you may not be able to use the app to reach your money until it is fixed. Your Earn token remains in your wallet on the blockchain the whole time.
You can ask to withdraw at any time, and there is no lock-up. But the dollars in Earn are lent out. A withdrawal only works if the lending markets have enough dollars available at that moment.
When many people withdraw at once, or when borrowers are using most of the available dollars, your withdrawal can fail. If it fails, your money stays in Earn and keeps earning. You can try a smaller amount, or try again later. Nobody, including Moni, can promise when the full amount will be available.
Gauntlet manages the vault. Through its own contract settings, Gauntlet can:
Gauntlet has given up the ability to block withdrawals from the vault. Liquidity, described above, is the only thing that can hold a withdrawal back.
Moni controls the Earn contract within the limits in the Earn Terms. Moni can:
Moni has permanently given up the ability to block withdrawals, to freeze or move your token, and to move the dollars to any other protocol or vault.
Morpho maintains the protocol. Changes to the protocol or to the standards the vault relies on can affect Earn.
Your Earn token lives in your wallet, so you can interact with the Earn contract outside the Moni app. The Moni app is the supported way to use Earn.
The Earn contract includes a “force withdraw” function that pulls dollars back from the vault for anyone who asks, as long as the lending markets have them available. It charges the person who uses it a penalty of 2% of the amount, which goes to the other holders. The Moni app never uses this function. It only matters if you call the contract yourself.
Earn is not registered with, licensed by or approved by any financial authority in your country or in the United States. Rules for lending digital dollars are new and changing. A change in the law may force Moni to limit, change or stop Earn in your country. If that happens, you will always be able to withdraw.
Moni does not recommend Earn to you or to anyone. Nothing in the app, in the Earn Terms or in this document is investment, legal or tax advice. Decide for yourself, and ask a professional if you are unsure.
