1. Purpose of this disclosure
This disclosure summarises important risks associated with digital assets, onchain businesses, liquidity positions, collateral, and business financing. It is not exhaustive and does not replace independent professional advice or transaction documents.
2. Risk of substantial or total loss
Digital assets, token-linked rights, liquidity positions, and project revenue can lose most or all of their value. Historical activity does not predict future results. Financing can increase financial pressure and may lead to enforcement against collateral or other agreed remedies.
3. Market and liquidity risk
Prices can change rapidly. Markets may be thin, fragmented, manipulated, or unavailable. Large transactions can create severe slippage. Liquidity providers may experience impermanent loss, fee volatility, adverse selection, or inability to exit at an expected value.
4. Smart-contract and technology risk
Contracts may contain defects, harmful permissions, upgrade risks, oracle failures, governance attacks, bridge failures, key compromise, or unexpected interactions. Audits reduce some risk but do not guarantee security. Transactions may be irreversible.
5. Stablecoin and settlement risk
A stablecoin may lose its reference value, become illiquid, be frozen, face issuer failure, or be affected by reserve, banking, redemption, legal, or operational problems. Settlement networks may stop, reorganise, congest, or change rules.
6. Project and counterparty risk
Operators, contributors, market makers, exchanges, custodians, vendors, signers, or other counterparties may fail, act dishonestly, become insolvent, lose access, breach agreements, or stop supporting a project.
7. Legal and regulatory risk
Laws and official interpretations can change quickly and differ by jurisdiction. An asset or activity may be restricted, treated as a security or another regulated product, taxed differently, or become unavailable. Compliance duties may affect transactions, users, liquidity, custody, disclosures, or enforceability.
8. Governance and concentration risk
Voting power, token supply, admin permissions, liquidity, or treasury control may be concentrated among a small number of people or wallets. Governance decisions may dilute value, change fees, alter contracts, or disadvantage other participants.
9. Financing-specific risk
Revenue may fall below forecasts. Repayment obligations, fees, reporting requirements, restrictions, collateral calls, defaults, and enforcement can affect operations. Refinancing may not be available. Fixed-fee structures can represent a high effective cost when repaid quickly or when revenue declines.
10. Information and model risk
Public data, blockchain labels, analytics, forecasts, models, and applicant information may be incomplete, delayed, inaccurate, manipulated, or misunderstood. Risk scores and simulations cannot identify every threat.
11. Security and fraud risk
Phishing, impersonation, malware, social engineering, fraudulent websites, compromised devices, and false instructions are common. Verify domains and counterparties. Wentura will never need a seed phrase or private key.
12. Independent assessment
Before entering any transaction, obtain independent legal, financial, tax, accounting, cybersecurity, and technical advice. Assess whether the obligations and risks are appropriate for the organisation. Do not rely solely on Wentura’s review or website information.