Risks & Disclaimers

Like any financial system, SBF Tokens involve multiple risks. These include:

Market Risk

Asset values can fluctuate — especially for longer-duration bonds or equities — impacting the NAV of the token.

Custodian Risk

Despite using licensed custodians, there’s inherent counterparty risk in off-chain asset management.

Oracle Risk

The system relies on external data feeds to verify reserves and NAV. Oracle manipulation or downtime could affect price accuracy.

Regulatory Risk

Tokenizing securities may trigger local securities laws, requiring ongoing compliance review and possible whitelisting or geofencing.

Liquidity Risk

In low-liquidity environments, redemption windows may widen, or the protocol may impose dynamic withdrawal limits to prevent imbalance.

Smart Contract Risk

While all contracts will be audited, exploits remain a systemic risk in DeFi. Bug bounties and continuous monitoring will be implemented.

Disclaimer: This protocol does not offer investment advice. Users should perform their own due diligence and comply with local regulations.

Last updated

Was this helpful?