What are some of the risks involved in investing on STOKR?

Note: Please always read these risk disclosure before investing.

Investments into companies are risky and speculative. You should do your own research and scrutinise all disclosed risk factors before making an investment decision.

LOSS OF MONEY
Startups, small and medium sized companies have a high risk that their business model may fail or that they run out of financing before being profitable. You should only invest an amount you can afford to lose entirely without changing your lifestyle. You should be prepared to lose your entire investment at any moment.

LIQUIDITY
Although peer-to-peer transfers are possible for Security Tokens issued by ventures, there is currently no established liquid secondary market available. No assurance can be given that such a liquid market will be established in the future. You may need to hold your investment for an indefinite period of time. Unlike investing in companies listed on a stock exchange, where you can quickly and easily trade securities, you may have to locate an interested private buyer to resell your Security Tokens.

INFORMATION
It may be difficult to obtain all information needed to fully understand the business models of ventures as may keep on changing all the time. The ventures will report only periodically, and the information provided may be very technical in nature.

LIMITED VOTING RIGHTS
Investment instruments hosted on the STOKR marketplace typically give profit participation or revenue participation rights. These rights do not provide general voting rights to investors. Investors may receive limited voting rights which may be subject to dilution. Please check the respective Offering Documents for specific rights connected to each Security Tokens.

RESEARCH
Do your own research. Read the documents provided by each venture and the terms of offering. Get independent legal, accounting and financial advice. If you have any questions or need more information, ask the venture in the comments section on STOKR.

DILUTION
Any venture seeking funding might seek additional funds in the future. You may in general participate in future funding rounds. However, your rights in such case may be diluted.

PRIVATE KEY RISKS
If a private key is lost, destroyed or otherwise compromised and no backup of the private key is accessible, you may only be able to access the Security Tokens issued by the ventures by paying a Fee to STOKR. Please read our blogs carefully and do your own research on how to store your private key(s) safely.

DIVERSIFICATION
Investment risks can be mitigated by splitting your available money over various investment opportunities. This means not only to invest in different ventures but also investing in other asset classes depending on your personal risk profile. Learn more about diversification in our blogs.

POSSIBILITY OF FRAUD
There is a risk that a ventures raising on STOKR engages in fraud. STOKR vets the ventures, but there is no way to control the actions of a venture once a campaign ends and STOKR cannot verify everything.