The Five Risks
Read this page before deciding how much to commit. None of these are theoretical — every one has happened.
1. Issuer counterparty risk
You hold the issuer's claim. Whether the underlying shares are fully custodied, whether custody is bankruptcy-remote, and where you stand in a failure determine the floor value of your token.
Check: Does the issuer publish proof of reserves? Who is the custodian? Which jurisdiction? (Links live on each asset's issuer card.)
2. Liquidity risk
On-chain depth is orders of magnitude below Nasdaq. Extreme case: AMZNX was once pushed ~100× off fair value by a modest buy order. Getting in is not the same as getting out at a similar price.
Check: pool depth and the $10k impact tier on the asset page; split orders that exceed a few percent of pool depth.
3. Rights differences (no voting, etc.)
- No voting rights, no shareholder meetings;
- Dividend mechanics vary by issuer (balance increase / value accrual) — no cash hits your account;
- Redemption is usually restricted to eligible investors; everyone else exits via the secondary market.
4. Closed-market gap risk
Chains trade 24/7; stocks trade 32.5 hours a week. Big news during closed hours lands as a gap at the open — your on-chain fill during closed hours may sit far from the next real open. That's why closed-hours premiums here are grayed "reference" values that never alert by default.
5. Stablecoin and infrastructure risk
- If the USDT/USDC leg depegs, your "dollar value" distorts with it;
- Smart-contract bugs, hijacked front-ends, malicious approvals;
- The ultimate self-custody risk: a lost or leaked seed phrase is unrecoverable — no support desk can help.
One-page summary: commit only what you can lose; size below what the pool absorbs comfortably; treat closed-hours spreads as information, not opportunity; keep the seed phrase offline; enter only via the official links page.
FAQ
- If the issuer collapses, does my token go to zero?
- Not necessarily, but recovery depends on the legal structure: shares held in bankruptcy-remote custody are claimable under the certificate's terms. This is precisely why legal wrapper and custody arrangements matter when choosing an issuer.
- Why does this site sometimes hide an asset's numbers?
- When sources conflict, prices jump abnormally, or deviations turn extreme, the asset is degraded or quarantined — better to show nothing than a possibly wrong number. Recovery requires several consecutive clean checks.
- Is LPing tokenized stocks safe?
- LP positions carry impermanent loss, and price discovery distorts during closed market hours, making stock-token LPs riskier than typical pairs. Not recommended for beginners.