Risks and disclosures

This page states the risks in plain terms. It is not a legal formality bolted on at the end — if any item below is unacceptable to you, do not participate.

Risk in the token itself

Total loss

$SWA may go to zero. Token prices are driven by demand, and demand for a new asset is volatile and can disappear entirely. The existence of a stock pool behind the protocol does not create a price floor, because the pool is not redeemable on demand at a fixed rate.

Liquidity

Liquidity is provided by an automated market maker, not a market maker with an obligation to quote. In thin conditions, exiting a position of meaningful size will move the price against you materially. There may be moments when you cannot exit at any price you would accept.

Tax drag on trading

The 3% buy and 3% sell tax means a round trip costs at least 6% before price movement and before AMM swap fees. Short-horizon trading of $SWA is structurally unprofitable. The token is designed to be held.

Smart contract risk

The contract may contain bugs. Audits reduce but do not eliminate this. A critical defect could result in loss of funds, frozen balances, or an inability to distribute airdrops. Onchain systems are irreversible — there is no chargeback.

Risk in the airdropped positions

They are synthetic

An airdropped position represents exposure to the referenced equity. It is nota registered share held in a brokerage account in your name. You are not on the issuer's share register. You have no voting rights, no proxy, and no direct claim against the company. In an insolvency of the protocol or its counterparties, you are not a secured creditor of anything.

No investor protection scheme

There is no SIPC, FSCS, or equivalent coverage. If assets are lost through fraud, failure, or error, there is no compensation fund.

Counterparty and custody risk

Backing the synthetic exposure requires holding or referencing real assets somewhere. That introduces dependence on custodians, execution venues, and price oracles. Failure at any of those points can break the link between the position you hold and the asset it references.

Market risk on the underlying

Equities fall. Dividends are declared at the discretion of each issuer's board and can be cut or suspended without notice — including by companies with long records of increases. A tier label such as “Dividend Aristocrat” describes past behaviour and guarantees nothing about the future.

Risk in the mechanics

Allocation is probabilistic

Your share of any distribution scales with your balance, but the composition and value of what arrives varies. Receiving less value than you expected in any given period is a normal outcome, not a malfunction.

Parameters are not final

The tax allocation split and the hold-time multiplier design are still being set. When published, they may differ from what you assumed. Do not size a position on the basis of parameters that have not been announced. See Airdrops.

Redemption rate affects everyone

If a large share of holders redeem positions simultaneously, circulating $SWA expands quickly and price pressure follows. Your outcome depends partly on decisions other holders make.

Selling resets your standing

Hold-time accrual is designed to reset when you sell. Rotating in and out will leave you permanently at the bottom of the curve even if your average balance is high.

Regulatory and tax risk

The regulatory treatment of tokenised equity exposure is unsettled and differs by jurisdiction. A future determination by a regulator could restrict access, force changes to the mechanics, or require the protocol to cease operating in certain markets. Availability today does not imply availability tomorrow.

Receiving an airdrop, redeeming a position, and receiving a dividend may each be separate taxable events where you live, potentially at different rates. The protocol does not withhold tax, does not issue tax documents, and cannot advise you. Keep your own records and consult a qualified professional in your jurisdiction.

Operational risk

• Phishing and impersonation. Verify the contract address and every link against this site. Nobody from the project will ever ask for your seed phrase or private key.
• Self-custody. Lose your keys and the assets are gone. There is no recovery process.
• Interface risk. This site displays protocol data. Displayed figures may be stale, cached, or wrong. The chain is the source of truth.

No advice, no offer

Stock World Assets does not provide investment advice, does not make suitability assessments, and does not act as a broker, dealer, adviser, or fiduciary to anyone. Nothing published here constitutes an offer to sell, or the solicitation of an offer to buy, any security in any jurisdiction. Ticker symbols and company names are used descriptively to identify the referenced assets; their appearance implies no relationship with, or endorsement by, the companies named.