Tokenized Asset Risks
The risks specific to holding equities as tokens.
| Risk | Description |
|---|---|
| Issuer | The token is a claim on an issuer. Issuer failure is a total loss on that leg. |
| Custody | The underlying is held off-chain by a custodian the protocol does not control. |
| Redeemability | The issuer may restrict or suspend redemption of the tokenized asset. |
| Market hours | Pricing is stale while the underlying market is closed. |
| Regulatory | Tokenized equity regimes are unsettled and can change abruptly. |
| Corporate actions | Splits, dividends and delistings are handled by the issuer, not the protocol. |