Tokenised, asset-backed securities involve significant risks. This Risk Disclosure summarises some of the key risks that may apply.
Last updated: 2025
Investments in tokenised, asset-backed securities or similar instruments are speculative and involve a high degree of risk. You should not invest unless you are able to bear the risk of losing some or all of the capital invested and can tolerate illiquidity and volatility.
There is no guarantee that any investment will achieve its objectives, appreciate in value, or generate any income. Past performance, appraisals, or valuations are not reliable indicators of future performance.
The value of tokenised interests in artworks or other assets may fluctuate significantly. Valuations of art and cultural assets are inherently subjective, may be affected by market conditions and sentiment, and may be revised over time.
Tokenised interests in SPVs or similar structures may be illiquid. There may be no active secondary market, and there is no assurance that you will be able to sell your holdings at a desired time or at a favourable price, or at all.
The regulatory treatment of tokenised assets and related structures is evolving and may change over time. Changes in law, regulation, or regulatory interpretation could adversely affect the operation of the platform, the ability to trade tokens, or the rights attached to them. In some jurisdictions, access to tokenised products may be restricted or prohibited.
The operation of a tokenisation platform involves complex technical systems, including distributed ledgers, smart contracts, and security controls. Failures, vulnerabilities, cyber-attacks, or operational errors could result in loss, delays, or disruption. While security measures are implemented, no system is completely immune from failure or compromise.
Underlying artworks or assets may be held in museum or third-party custody and may be insured; however, custody and insurance arrangements are subject to contractual terms, coverage limitations, and exclusions. Physical damage, loss, or disputes relating to custody or title may adversely affect the value of the investment.
Investments concentrated in a small number of artworks, artists, collections, or asset classes may be more volatile than diversified portfolios and may be affected by specific developments or events.
Investors are exposed to the credit and performance risk of SPVs, custodians, insurers, service providers, and other counterparties involved in the structure. A failure or default by one or more counterparties may have a material adverse effect on investments.
Tokenised, asset-backed securities are not suitable for all investors. You should carefully assess your financial position, investment objectives, risk tolerance, and regulatory status, and seek independent professional advice before making any investment decision.
This Risk Disclosure is a high-level summary and does not describe all risks associated with investments in tokenised or structured products. The specific risks of any offering will be set out in the relevant prospectus, offering memorandum, or equivalent documentation. You must carefully review those documents before investing.
This document is a draft summary for website disclosure. It does not replace formal risk factors in any prospectus or offering document and should be reviewed and approved by qualified legal and regulatory counsel.