Risk Disclosure
Last updated: February 1, 2026
CRITICAL RISK WARNING – READ BEFORE USING THIS SITE
Tokenized real-world assets (RWAs) are highly speculative, complex, and involve **extreme risk of total loss of capital**. This site provides **informational data only** — no warranties, no guarantees, and **no liability** for any losses.
By accessing RWA Indices you acknowledge that you understand these risks and accept full responsibility for your own decisions. We strongly advise against investing unless you are prepared to lose 100% of your capital.
1. Nature of Tokenized RWAs
Tokenized RWAs represent traditional assets (Treasuries, loans, real estate, carbon credits, invoices, art, etc.) on blockchains. While they offer potential benefits (fractional ownership, transparency, 24/7 access), they also introduce entirely new categories of risk not present in traditional finance.
2. Principal Risk – Total Loss of Capital
You may lose your entire investment.
Many tokenized products are speculative. Historical examples include:
- De-pegging events (stablecoins, yield-bearing tokens)
- Protocol insolvency or exploits
- Redemption failures / permanent lock-ups
- Regulatory bans or forced liquidations
Never invest more than you can afford to lose completely.
3. Smart Contract & Protocol Risks
- Code vulnerabilities / bugs (even audited contracts can be exploited)
- Governance attacks or malicious upgrades
- Oracle manipulation or failure (wrong pricing → under/over-collateralization)
- Rug pulls, exit scams, or developer abandonment
- Flash loan attacks or economic exploits
4. Custodial & Counterparty Risks
- Even regulated custodians can fail, be hacked, or become insolvent
- Issuer / borrower default (especially in private credit / invoice finance)
- Redemption queues / gating during stress events
- Off-chain collateral mismanagement or fraud
5. Regulatory & Legal Risks
- Tokens may be reclassified as securities → enforcement actions
- Jurisdictional bans or restrictions (e.g., US, EU, Asia)
- Changes in tax treatment (capital gains, ordinary income, wash sales)
- KYC/AML freezes or forced liquidations
- International sanctions or compliance issues
6. Market & Liquidity Risks
- Extreme volatility (far higher than traditional assets)
- Low or no secondary market liquidity
- Wide bid-ask spreads or slippage
- Flash crashes or manipulation on low-liquidity pools
7. Operational & Technology Risks
- Wallet hacks, phishing, or seed phrase loss
- Network congestion (high gas fees, failed transactions)
- Bridge exploits or cross-chain failures
- Dependency on centralized components (oracles, custodians)
8. No Warranties or Liability
RWA Indices provides data and tools “AS IS” with **no warranties** of accuracy, completeness, timeliness, or fitness for any purpose.
We are **not liable** for any losses — direct, indirect, incidental, consequential, or punitive — arising from use of this site or reliance on any information displayed.
Always verify data independently and consult licensed professionals before making financial decisions.
9. Final Warning
Tokenized RWAs are not suitable for most people.
They combine the risks of traditional finance (credit, market, counterparty) with entirely new blockchain-specific risks (smart contracts, decentralization failures, regulatory uncertainty). Many experienced investors have lost everything in similar products.
If you are not prepared to lose 100% of your capital — **do not participate**.