Tokenization can make real assets easier to own, finance and trade. It does not make them safe. Before you list an asset or invest, read these risks carefully and consider getting independent professional advice.
Important notices
- Not an offer. Nothing on this website is an offer to sell, or a solicitation of an offer to buy, any security or other financial product. Offerings are made only by licensed issuers, through their own offering documents, to eligible investors in places where the offering is permitted.
- No advice. Arrabon does not provide investment, financial, legal, tax or insurance advice, and nothing on this site is a recommendation. Consider your own circumstances and consult qualified professionals.
- Illustrative content. Dashboards, case studies and figures on this site are illustrative and use sample data unless clearly stated otherwise. They are not projections, forecasts or guarantees of returns.
- Pledged assets. The $6B figure on our homepage reflects real-world assets pledged for processing on the platform. It is not assets under management, and processing begins at launch.
- Private beta. The platform is in private beta. Features, timelines and availability may change, be delayed or not launch as described.
- Forward-looking statements. Statements about future plans, products or performance are forward-looking and may not happen as described.
Investment risks
- You can lose money. The value of a tokenized asset can fall, and you could lose some or all of what you invest. Past performance does not guarantee future results.
- Valuations are estimates. Appraisals and valuation marks are professional estimates made at a point in time. A sale could happen at a lower price, or not at all.
- Selling is not guaranteed. Secondary trading depends on someone wanting to buy. You may not be able to sell when you want or at the price you want, and some offerings restrict transfers or require minimum holding periods.
- Income can stop. Rent, royalties and other distributions depend on tenants, operators and licensees paying. They can be reduced, delayed or suspended.
- Not insured, not a deposit. Tokens are not bank deposits, are not insured by the FDIC or SIPC, and are not insured against market loss.
- Concentration. An offering is usually a stake in a single asset, so its outcome depends on that one asset.
- Eligibility. Many offerings are open only to accredited or otherwise qualified investors, and availability depends on where you live.
Asset risks
- Physical risk. Physical assets can be stolen, damaged, destroyed or deteriorate. Arrabon does not provide custody, storage or physical security: assets are held by their owner or a licensed custodian, and insurance terms and availability vary.
- Authenticity and provenance. Arrabon does not determine whether an asset is authentic or what it is worth. It records the reports of independent experts, and those reports reduce, but do not remove, the risk that an attribution is challenged or that an ownership claim emerges later. You decide how much weight to give them.
- Title and legal structure. Title defects or undisclosed liens can affect an asset. A digital deed supplements, and does not replace, the legal title and registration that the law requires, and how enforceable it is varies by jurisdiction.
- Risks of each asset class. Every asset carries risks of its own kind: vacancy and tenant default for property, operator and gaming-license risk for casino real estate, output and weather for energy, legal challenge and expiry for patents, and price swings for commodities.
Technology and settlement risks
- Software and networks. Smart contracts can contain errors, and blockchain networks can suffer outages, congestion or forks that delay or disrupt transactions.
- Security. Despite encryption, access controls and multi-step transfer authorization, systems can be attacked, and no technology prevents every form of compromise.
- Access to your account. If you lose access to your account or credentials, recovering your holdings may be slow, costly or impossible.
- Stablecoins. Settlement uses stablecoins, which can lose their peg, face problems with their issuer or reserves, or have redemptions paused.
Legal, regulatory and tax risks
- Changing rules. The regulation of tokenized assets is evolving. New laws or interpretations could change, restrict or end the availability of the platform or of particular offerings.
- Many jurisdictions. Rules differ by country and state. You are responsible for complying with the laws and tax obligations that apply to you.
- Tax. The tax treatment of tokenized assets is uncertain in many places and may change. Get tax advice before you invest or list an asset.
- Compliance checks. Identity, accreditation and sanctions checks may delay, limit or stop your access, or freeze an account where the law requires.
Partners and counterparties
- Licensed partners. Issuance, lending, custody, insurance and stablecoin services are provided by third parties under their own terms. Arrabon does not control, and is not responsible for, their performance, availability or compliance.
- Insurance. Insurance is provided by third-party insurers under their own policies. Arrabon does not guarantee coverage, terms or claims.
Fees and conflicts of interest
- Fees. Arrabon earns fees from asset owners for processing, certification and ongoing monitoring, and partners may charge their own fees. Fees reduce what owners receive and may affect investor returns.
- Incentives. Because Arrabon is paid when assets are processed, it has an incentive to bring assets to market. Certification relies on independent experts and documented standards to keep that incentive in check.
- Affiliated assets. Assets owned or pledged by companies affiliated with Arrabon may be offered on the platform. Where they are, the relationship will be disclosed in that offering's documents.
Where to read more
These disclosures do not cover every risk. Our Terms of Service govern your use of Arrabon, including limits on our liability and how disputes are resolved, and each offering's documents set out the specific risks of that offering. See also our Privacy Policy, Security and Compliance page and FAQ.
Questions about these disclosures? Email legal@arrabon.xyz.