All lessons

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.

Educational content, not investment advice. Data definitions and features follow what the live pages display.

五大风险清单 | The Five Risks | Chaconne