Every financial product involves risk. This includes traditional savings accounts, money market funds, payment apps, and modern digital savings products.

Rebind is designed to be conservative and transparent about risk. This article explains the main risks involved and how Rebind reduces them.

Market risk

Market risk refers to changes in supply and demand that affect interest rates.

In Rebind, your savings earn yield from open money markets. The yield rate can go up or down depending on borrowing demand. There is no guaranteed return.

This is similar to how interest rates on traditional savings accounts or money market funds change over time.

Importantly, market risk does not mean price volatility of your balance. Your savings remain in stable euros or dollars. What changes is the yield rate, not the principal.

Liquidity risk

Liquidity risk describes the possibility that access to funds could be delayed during rare and extreme situations.

Rebind is designed for continuous liquidity, and withdrawals work instantly with more than 99 percent reliability under normal conditions.

However, like any financial system, extreme market stress or major infrastructure disruptions could temporarily affect liquidity. This type of risk is not unique to Rebind. Banks can impose withdrawal limits, payment systems can experience outages, and money market funds can suspend redemptions during periods of stress.

Rebind reduces liquidity risk by avoiding lock-ups entirely, using markets with deep and established liquidity (over 30B€ in total assets) and operating continuously rather than within banking hours or manual approval processes.

Unlike many traditional products, Rebind can also not lock users out of their funds. Users remain in control of their savings at all times. The open money markets Rebind connects to operate continuously, without permission, and are accessible 24/7 through open, transparent systems rather than closed banking infrastructure.

So, even if Rebind would ever suspend your login, your funds would still be under your full-control at any time through other compatible interfaces and apps.

Infrastructure risk

Infrastructure risk relates to failures in the technology that powers those financial systems.

Rebind builds on multiple layers of infrastructure, including stablecoin issuers, blockchain networks, data providers, and open financial software. Unexpected issues are possible.

Traditional finance also carries infrastructure risk. Payment networks go down, banks experience system failures, and card networks have outages. These risks are managed, not eliminated.

Rebind reduces infrastructure risk by relying only on mature, widely used systems with long operating histories, and by avoiding experimental or unproven technology. The infrastructure used was accessed by more than 200.000 users, earned more than 1B€ in yield and meanwhile also serves banks like Societé Générale.

Stablecoin risk

Stablecoin risk relates to the issuer maintaining proper reserves and operations.

Rebind uses only fully backed stablecoins designed to hold a one-to-one value with euros or dollars. These stablecoins are issued by regulated, highly transparent institutions and backed by real reserves.

Still, stablecoins are not the same as insured bank deposits. They depend on the issuer’s ability to manage reserves, operations, and compliance correctly.

This risk is comparable to holding funds with payment institutions or e-money providers rather than traditional banks. Rebind mitigates this risk by selecting only the most established stablecoins with strong oversight and long track records, e.g. like Circle and Monerium.

Software risks

Open money markets are run by automated software (smart contracts). Errors in code, unexpected edge cases, or failures in external components could lead to losses.

Rebind reduces protocol risk by using only the largest and most established markets that have been used for years, audited extensively, and tested across multiple market cycles.

What Rebind deliberately avoids

Some risks are best reduced by not taking them at all.

Rebind does not:

• use leverage

• lock funds for fixed periods

• rely on complex trading strategies

• mix user funds with company funds

This conservative approach limits the types of risks users are exposed to and keeps the product focused on savings, not investment speculation.

Putting risk into perspective

No savings product is risk-free. Bank accounts depend on banks, deposit insurance schemes, and regulators. Money market funds depend on market liquidity and counterparties. Payment apps depend on multiple institutions and technical systems.

Rebind approaches risk conservatively by making it transparent, limiting exposure through proven infrastructure, and keeping users in control of their funds at all times.