Risk
Market risk
How price moves affect each participant.
CARRY
Loss begins when the final close is below the barrier; from there the loss is the full drop from S0, softened only by coupons earned.
GUARD
Pays coupons whatever the stock does above the barrier. On a breach the stock leaves at S0, so any later rebound belongs to CARRY.
Backstop depositors
Hold many CARRY positions; a broad sell-off can breach several at once. Caps limit concentration but not correlation.
Stock Token specifics
24/5 trading means gaps between Friday and Monday closes can be large, and only closes count.
Historical context
Single stocks have fallen more than 30% in thirteen weeks many times. Barriers are set per name to reflect this, not to rule it out.