11. Principal Risks
Regulatory, execution, market, cyber, operational and commercial risks.
11. Principal Risks
Regulatory risk: exemptive relief is temporary, conditional, narrow and subject to change. Execution risk: licensing, partnerships and production technology may be delayed or unavailable. Market risk: tokenized securities may lack issuers, investors or sustainable liquidity. Smart-contract and cyber risk: code flaws, wallet compromises, key management failures and chain outages. Operational risk: custody, settlement, records, trading halts, sanctions and market surveillance. Commercial risk: revenue assumptions, customer acquisition, liquidity-provider economics and capital requirements may not be achieved.