> For the complete documentation index, see [llms.txt](https://docs.gpu-fi.uk/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gpu-fi.uk/risks/hardware-risk.md).

# Hardware Risk

Explains how physical GPU infrastructure depends on treasury accumulation and deployment.

{% hint style="warning" %}
GPUFi does not have physical GPUs in Phase 1.
{% endhint %}

Initial mining yield comes from trading activity. Physical GPU infrastructure depends on future treasury accumulation and deployment.

### Treasury dependency

```
Trading Activity
       ↓
Creator Tax
       ↓
30% Treasury Allocation
       ↓
Treasury Accumulation
       ↓
Future GPU Acquisition
```

Thirty percent of the 3% creator tax goes to the treasury:

$$
3% \times 30% = 0.90%
$$

The treasury allocation equals 0.90% of every trade. GPU acquisition therefore depends indirectly on trading activity.

### Phase 2 dependency

Phase 2 targets approximately one to two months after launch. The roadmap targets two NVIDIA RTX 3090 units at approximately $1,500 per unit.

These are targets, not guaranteed purchases.

* If treasury accumulation is insufficient, purchases and deployment can be delayed.
* If activity is very low, Phase 2 may be delayed significantly or may not happen.

### Physical infrastructure

Once physical GPUs exist, operation depends on hosting location, uptime, and utilization.

The project intends to publish serial numbers, photos, hosting location, monthly uptime, and utilization information. This provides transparency. It does not guarantee performance.

### Future revenue dependency

Future GPU rental revenue depends on GPUs being acquired, deployed, and used for actual rental activity. It is not current revenue.

External GPU operators are planned for Phase 3. An inference API is planned for Phase 4.

### Current-state language

| State                                                       | Project language      |
| ----------------------------------------------------------- | --------------------- |
| Before physical GPUs are live and generating rental revenue | GPU-powered ecosystem |
| After physical GPUs are live and generating rental revenue  | GPU-backed            |

This distinction separates the current state from future infrastructure.

Next, [Regulatory Risk](/risks/regulatory-risk.md) covers the unresolved treatment of mining rewards.


---

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