This Risk Disclosure was last updated on 23 November 2023.
The introduction and growth of AfriVest’s tokenized assets, particularly in the African commodities and real estate sectors, are subject to various risk factors, many of which may be beyond the control of AfriVest. As such, the value of AfriVest’s tokens may fluctuate, potentially leading to financial losses for token holders.
Considerations For Prospective Token Holders
Prospective token holders should carefully evaluate if investing in AfriVest tokens aligns with their personal objectives, financial status, and specific needs. The decision to invest should take into consideration individual risk tolerance levels, expected returns, and the nature of such investments. Given the complexities involved, prospective investors are advised to seek professional legal and tax guidance to inform their investment strategies.
Key Risks In Token Investment
- Market Risks: The valuation of AfriVest tokens is subject to various economic and market factors. These can include market volatility, changes in commodity prices, global economic conditions, political events, natural disasters, and shifts in government policies, monetary strategies, taxation, and regulations.
- Operational Risks: Risks related to operational aspects, such as system failures, regulatory requirements, fraud, legal risks, and other unforeseen circumstances, may also impact the value of AfriVest tokens.
- Tax Risks: Modifications in tax laws or policies, particularly concerning the taxation of crypto assets, might negatively impact the token’s value. Tax obligations are the responsibility of each token holder, and individual advice on taxation should be sought.
Afrivest’s Specific Risks
- Illiquidity Risk: There might be risks associated with the liquidity of AfriVest tokens, including possible restrictions on trading to comply with legal requirements. While AfriVest endeavors to facilitate trading through secondary markets, this is subject to legal and regulatory approvals.
- Value Fluctuations: The market value of AfriVest tokens can rise and fall, reflecting the market value of the underlying assets and economic conditions. There is no guarantee of future valuation.
- Cybersecurity Risks: Risks of hacking and security weaknesses are inherent in digital platforms. AfriVest is committed to maintaining robust security systems to mitigate such risks.
- Regulatory Risks: The regulatory environment for crypto assets and blockchain technology is evolving. Changes in regulations and policies could impact AfriVest’s operations and the value of its tokens. AfriVest is committed to complying with regulatory changes and ensuring legal operations.
While AfriVest takes steps to minimize risks, it is crucial for potential investors to understand that all risks cannot be completely eliminated. Investing in AfriVest tokens should be a well-considered decision, factoring in the various market, operational, and regulatory risks involved. Prospective investors are encouraged to seek professional advice to ensure that investing in AfriVest tokens is aligned with their individual investment goals and circumstances.