Contents
1. In short
- You can lose all the money you invest. Returns and yields are not guaranteed.
- You may not be able to sell when you want, or at all.
- NuVora does not give advice. Decide for yourself, and get independent financial, legal and tax advice if you are unsure.
This page does not list every risk. Each listing's documents describe the risks of that investment. Read them too.
2. Issuer risk
Each token is issued by a company, not by NuVora. The value of your investment depends on that company and the assets it manages. It can fail, be badly managed or act dishonestly. Our approval of a listing is not a guarantee of the issuer or the investment.
3. Liquidity risk
- There may be no buyer for your tokens on the secondary market, or only at a much lower price.
- Funds may let you redeem only on set dealing dates, with notice periods, limits or gates.
- Transfers only work between verified investors who meet the token's rules, which limits who can buy from you.
- An issuer may pause dealing or trading.
4. Value and price risk
Prices and net asset values are published by the issuer and may be delayed, estimated or wrong. The value of the underlying assets can go down as well as up. Past performance and target returns do not predict future results. Risk levels from 1 to 7 on a listing are set by the issuer and are only a guide.
5. Compliance controls on your tokens
Security tokens (ERC-3643) have rules built in. The issuer and its agents can freeze tokens, force a transfer or recover tokens when the law or a court requires it. If your identity verification expires or is withdrawn, you may not be able to transfer or receive tokens until you are verified again.
6. Technology and smart-contract risk
- Smart contracts can have bugs or be attacked, even after audits.
- Blockchain networks can be slow, congested, changed or stop working, and network fees can rise.
- Gas sponsorship by a company's paymaster can stop, so you may have to pay network fees yourself.
- Our website or services can be unavailable at times.
7. Wallet and key risk
You control your wallet. If you lose your recovery phrase or private keys, or someone steals them, you can lose your tokens and no one can reverse it. Beware of phishing: NuVora will never ask for your recovery phrase.
8. Payment token and currency risk
You pay with digital payment tokens such as stablecoins. A stablecoin can lose its link to its currency, or be frozen by its issuer. If an investment is priced in a currency other than yours, exchange rates can reduce its value to you.
9. Legal, regulatory and tax risk
Laws on tokenized securities are new and can change. A change could limit who may hold or trade a token, or force an offering to close. You are responsible for your own taxes on any investment or gain.
10. No deposit protection
Investments on NuVora are not bank deposits. They are usually not covered by any deposit guarantee or investor compensation scheme.