Risk Warning
Last updated: January 1, 2024
High Risk Investment
General Investment Risks
All investments carry risk. Before investing through Pedex, you should carefully consider the following risks:
1. Loss of Capital
The value of tokenized assets can go down as well as up. You may lose some or all of your invested capital. Past performance is not an indicator of future results.
2. Market Risk
Asset values are subject to market fluctuations based on:
- Economic conditions
- Market sentiment
- Industry-specific factors
- Regulatory changes
- Geopolitical events
3. Liquidity Risk
Tokenized assets may have limited liquidity. You may not be able to sell your tokens quickly or at the desired price. Market liquidity can vary significantly between different asset types and market conditions.
4. Technology Risk
Blockchain and distributed ledger technology involve various risks:
- Smart contract vulnerabilities
- Network congestion or failures
- Loss of private keys
- Cybersecurity threats
- Technical errors or bugs
5. Regulatory Risk
The regulatory framework for tokenized assets is evolving. Changes in regulations may affect:
- Platform operations
- Asset tradability
- Tax treatment
- Legal rights and obligations
6. Counterparty Risk
Investment through Pedex involves reliance on:
- Platform solvency and operations
- Asset issuers' financial health
- Service providers' performance
- Custodians' security
7. Concentration Risk
Investing heavily in a single asset or asset class increases risk exposure. Proper diversification is important for risk management.
8. Currency Risk
If you invest in assets denominated in foreign currencies, exchange rate fluctuations may affect your returns.
9. Information Risk
Investment decisions depend on the accuracy and completeness of information provided by asset issuers. There is a risk of incomplete or inaccurate information.
10. Early-Stage Investment Risk
Some assets on our platform may be early-stage ventures with higher risk profiles:
- Limited operating history
- Unproven business models
- Higher failure rates
- Difficulty in valuation
Important Disclaimers
- No Guarantee: We do not guarantee returns or principal protection.
- Not Insured: Investments are not protected by deposit insurance schemes.
- Professional Advice: This is not investment advice. Consult financial advisors before investing.
- Suitability: Ensure investments align with your financial situation and goals.
Before You Invest
You should:
- Read all offering documents carefully
- Understand the specific risks of each investment
- Only invest money you can afford to lose
- Diversify your investments appropriately
- Consider seeking independent financial advice
Contact Us
For questions about investment risks, contact [email protected]