Risk Disclosures

Important information about the risks associated with investing in tokenized assets.

⚠️ Important Notice

Investing in tokenized assets involves substantial risk and may not be suitable for all investors. Please read these risk disclosures carefully before making any investment decisions.

General Investment Risks

Loss of Principal

All investments carry the risk of loss, including the potential for total loss of your investment. The value of tokenized assets may fluctuate significantly, and you may receive back less than your original investment or nothing at all.

Illiquidity Risk

Tokenized assets are generally illiquid investments. There may be no secondary market for your tokens, and even if a secondary market exists, there is no guarantee that you will be able to sell your tokens at any particular time or price. You should be prepared to hold your investment for an extended period.

Speculative Nature

Investments in tokenized assets are speculative and involve a high degree of risk. These investments are suitable only for investors who can afford to lose their entire investment and who have sufficient knowledge and experience to evaluate the risks and merits of the investment.

Technology and Platform Risks

Blockchain Technology Risk

Tokenized assets rely on blockchain technology, which is relatively new and unproven. Blockchain networks may experience technical difficulties, security vulnerabilities, or other issues that could affect the value or functionality of your tokens.

Smart Contract Risk

Tokens are created and managed through smart contracts, which are computer programs that may contain bugs, vulnerabilities, or other defects. Smart contract failures could result in the loss of your investment or the inability to transfer or trade your tokens.

Cybersecurity Risk

Digital assets and platforms are subject to cybersecurity risks, including hacking, theft, and other malicious activities. While we implement security measures, no system is completely secure, and you may lose your investment due to cybersecurity incidents.

Regulatory and Legal Risks

Regulatory Uncertainty

The regulatory environment for tokenized assets is evolving and uncertain. Changes in laws or regulations could adversely affect the value of your investment, restrict your ability to trade tokens, or require costly compliance measures.

Securities Law Compliance

Tokenized assets may be subject to federal and state securities laws. Failure to comply with these laws could result in penalties, restrictions on trading, or other adverse consequences that could affect your investment.

Asset-Specific Risks

Real Estate Risks

Real estate investments are subject to risks including market volatility, property damage, tenant defaults, changes in local market conditions, and regulatory changes affecting property ownership and management.

Credit and Default Risk

Investments in credit-related assets carry the risk that borrowers may default on their obligations, resulting in partial or total loss of your investment. Economic downturns may increase default rates.

Commodity and Mining Risks

Investments in commodities and mining operations are subject to price volatility, operational risks, environmental regulations, and geological uncertainties that could significantly impact returns.

Market and Economic Risks

Market Volatility

The value of underlying assets may be subject to significant volatility due to market conditions, economic factors, and investor sentiment. This volatility may not be reflected in token prices due to illiquidity.

Interest Rate Risk

Changes in interest rates may affect the value of your investment, particularly for income-producing assets or debt-related investments. Rising interest rates may reduce the attractiveness of fixed-income investments.

Inflation Risk

Inflation may erode the purchasing power of your investment returns over time, particularly for fixed-income investments or assets that do not adjust for inflation.

Operational and Management Risks

Management Risk

The performance of your investment may depend on the skills and decisions of asset managers or operators. Poor management decisions could adversely affect the value of your investment.

Counterparty Risk

Your investment may be subject to the creditworthiness and performance of various counterparties, including asset managers, custodians, and service providers. The failure of any counterparty could result in losses.

Tax Considerations

Tax Complexity

The tax treatment of tokenized assets is complex and uncertain. You may be subject to various tax obligations, including income tax on distributions and capital gains tax on sales. Tax laws may change, affecting your investment returns.

International Tax Issues

International investors may be subject to additional tax obligations in their home jurisdictions and may face withholding taxes on U.S. investments. Tax treaties may provide some relief, but tax planning is essential.

Important Disclaimers

No Guarantee of Returns

Past performance does not guarantee future results. Projected returns are estimates only and may not be achieved. All investments involve risk of loss.

Suitability

These investments are suitable only for accredited investors who meet specific income and net worth requirements and who can afford to lose their entire investment.

Professional Advice

Before making any investment decision, you should consult with qualified legal, tax, and financial advisors to understand the risks and determine whether the investment is appropriate for your financial situation and investment objectives.

Securities Disclaimer: Securities are offered through RealPort Securities LLC, member FINRA/SIPC. Investments are speculative, illiquid, and involve risk of loss. Past performance does not guarantee future results. Not available to residents of jurisdictions where prohibited.