The $CLOAK Token

$CLOAK is a utility token tied to how protection fees work on Cloak. It is not required to use the app — the standard protection fee described in Fee Policy always applies without it.

What it's for

• Discounting the protection fee for swaps routed through the protected path
• Funding a buyback mechanic from a share of collected protection fees (see below)

Fee discount tiers

Holding (not necessarily staking) $CLOAK reduces the protection fee at swap time:

Discounts apply only to the protection fee itself — the base swap fee stays at 0% either way, and holding $CLOAK never creates a fee where one wouldn't otherwise apply.

Buyback mechanic

A draft share of collected protection fees — 30%, pending confirmation — is used to buy $CLOAK from the open market and burn it. This ties token supply to actual protected swap volume rather than to speculation alone.

What $CLOAK is not

• Not required to swap on Cloak — it only affects the protection fee discount
• Not a governance token at this stage
• Not an investment product — holding $CLOAK is a fee-discount utility, not a claim on profit from the efforts of others, and carries no promise of value or buyback schedule

Token contract is unaudited at this stage — see Validation & Limitations. Not financial advice.