Service Risk Warning
Before you invest in the security token offerings (STOs) on the TokenizEU platform, you have to remember that it involves a considerable risk. To help you understand the risks involved with this kind of investing, please read the present Risk Warning carefully. If you do not have a lot of experience in investing, TokenizEU recommends to consult with an expert.
DIVERSIFY YOUR INVESTMENTS
Diversification involves spreading your money across different and multiple investments to reduce overall risk of losing your assets. However, diversification will not lessen all types of risks. Investments into security token offerings on the TokenizEU platform should not form all your investments. Investments into STOs on the TokenizEU platform should only form a
portion of you investments. TokenizEU recommends balancing investments via TokenizEU with safer investments.
RISKS RELATED TO INVESTING IN EQUITY OR FUNDS
Investing in STOs on TokenizEU platform may not involve a regular return on your investment unlike any other investment that may offer interest paid regularly. Investing in a fund may help to diversify your investments but general risks while investing in STOs continue to apply. While investing into STOs please note the following specific risks related to this field of investing:
1. LOSS OF INVESTMENT
The majority of businesses/projects do not succeed, do not reach their goal or fail and therefore investing in these projects via TokenizEU may involve considerable risk. There is always a possibility that you may lose all or some part of your investment. If you invest, then you should only invest an amount that you are willing to lose. If the project that you invest in fails, there will be no refunds and you will not get your investment back.
Dividends are payments made by a business to its shareholder from the company’s profit. A shareholder shall be paid a share of profit (dividend) in proportion to the nominal value of the shareholder’s share (tokens). It’s likely that some or even many of the businesses searching for investments on TokenizEU do not pay dividends to token holders, at least not in the first
year, as these companies are usually in the growth or a start-up phase. Because of that, the possibility to obtain dividends is unlikely. Early stage companies usually re-invest profits to grow.
3. LONG TERM INVESTMENT
Investing via TokenizEU may be a long term investment and earning profit from the investment depends mostly on the success of the company. Some of the companies seeking financing via TokenizEU are starting companies and reaching to the phase where it is profitable may take time and in some cases the company will never be profitable. Therefore, you should always consider an investment made via TokenizEU a long term investment.
4. DUE DILIGENCE
TokenizEU has conducted due diligence procedures to the project looking for funding on TokenizEU Website, but this does not substitute the need for each investor to conduct their own due diligence. TokenizEU does not guarantee that information provided by the companies is accurate and true. Information brought out by companies may not mention all risks related to the project. Before making the investment, TokenizEu recommends you to make thorough research, to make sure that given information is up to date and accurate.
5. DRAG-ALONG OBLIGATION
Drag-along obligation is right of majority shareholders to force minority shareholder to join in the sale of the company. There might be shareholders agreement in place that you have to agree to when investing via TokenizEU that involves drag-along obligation.
6. LACK OF LIQUIDITY
Tokens purchased via TokenizEU are unlikely to be sold easily afterwards in a short period of time. At the time of the offering or shortly after the offering, the tokens are not usually listed on trading markets where you could sell them.