> For the complete documentation index, see [llms.txt](https://doc.notliquid.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.notliquid.fun/money-and-risk/safety-and-governance.md).

# Safety & Governance

PNL cannot make NFTs safe, valuable, or polite. It can make its own state transitions explicit and bounded.

## Ordered anti-steering

Acquisitions settle in their original onchain sequence.

* Out-of-order Pyth callbacks only cache randomness.
* Later requests cannot skip an unresolved earlier request.
* Deposits made during an open window enter staging.
* Withdrawals and backing changes wait until unresolved acquisitions are terminal.

These rules stop callback timing or a last-second pool edit from choosing a more convenient selection set.

## Randomness delivery

`PNLPythAdapter` only accepts callbacks from the configured Pyth Entropy contract.

The adapter stores a fulfilled word before forwarding it to PNL. If delivery fails, anyone can retry it through `deliverRandomness` without changing the word.

The adapter also caps the acceptable Entropy fee. A quote above that cap fails closed instead of silently charging an unlimited amount.

## Refund credits

Expired, empty-pool, and out-of-bounds acquisitions credit the escrowed acquisition fee to the acquirer.

Refunds are pulled with `withdrawAcquisitionRefund`. This keeps an unusual receiving address from blocking the FIFO processor for everybody behind it.

The already-paid Pyth Entropy fee is not included in that credit.

## Operating switches

The PNL owner can:

* open or close new acquisitions;
* enable withdraw-only emergency mode;
* enable or disable collection whitelist enforcement;
* update bounded economic and timing parameters;
* manage collection eligibility;
* update the protocol payout address.

Withdraw-only mode stops new listings and acquisitions. Already-issued requests still need to resolve or expire before active positions can exit.

Staged positions cannot be cancelled out of order. Once the request queue is idle, anyone can activate eligible staged positions so their depositors regain the normal active-position exit path.

## Admin boundaries

Configuration authority is not custody authority.

The owner cannot use the PNL core to:

* withdraw a depositor's active NFT and backing;
* redirect a user's recorded fee earnings;
* redirect an acquirer's recorded refund credit;
* skip an earlier acquisition sequence.

The owner can change future-facing settings, including randomness configuration when no request is in flight. That authority is part of the admin risk, so the interface and current onchain configuration remain the source of truth.

## Background processing

The independent PNL keeper calls the same permissionless `processAcquisitions` function available to anyone.

It simulates work, advances ready or expired requests in canonical order, and waits for transaction confirmation. It does not hold user assets or gain a private settlement route.

## External risk remains

{% hint style="danger" %}
PNL uses real NFTs and real HYPE. Smart-contract, Pyth Entropy, HyperEVM, admin-key, collection-contract, metadata, liquidity, and market-price risks remain.
{% endhint %}

Mechanism guarantees are not profit guarantees. A valid random allocation can still be a financially terrible Tuesday.


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