Effective Date: July 21, 2025
This Risk Disclosure Statement (“Statement”) is provided by Rukhex Technology (BVI) Limited (the “Company,” “we,” “us,” or “our”) in connection with your access to and use of RWA Lab (the “Platform”). The Platform serves as a neutral, informational resource hub for Real World Assets (“RWA”) issuance and investment, offering educational materials, curated project lists, and connections to intermediary services. It is not an investment platform, financial advisor, broker, or exchange.
By accessing or using the Platform, you acknowledge that you have read, understood, and accept the risks described herein. This Statement is intended to inform you of the potential risks associated with RWA-related activities, including issuance and investment. However, it is not exhaustive, and you are solely responsible for evaluating all risks before engaging in any RWA-related decisions or transactions. We strongly recommend consulting independent financial, legal, tax, and regulatory advisors tailored to your specific circumstances.
RWA investments and issuances involve a high degree of risk and are not suitable for all individuals or entities. You could lose some or all of your investment capital. Past performance of any RWA project or asset is not indicative of future results.
1. General Risks of RWA Activities
RWAs represent tokenized versions of real-world assets (such as real estate, commodities, securities, or stablecoins) on blockchain networks. While they may offer benefits like increased accessibility and liquidity, they are subject to significant uncertainties and volatilities inherent in both traditional financial markets and emerging blockchain technologies.
- Market Risk: The value of RWAs can fluctuate widely due to factors such as economic conditions, interest rate changes, supply and demand dynamics, geopolitical events, and market sentiment. Prices may rise or fall sharply, leading to substantial losses.
- Liquidity Risk: RWAs may not be easily convertible to cash or other assets without significant price concessions. Secondary markets for tokenized assets can be illiquid, fragmented, or non-existent, potentially preventing you from selling or transferring your holdings when desired.
- Volatility Risk: Blockchain-based assets, including RWAs, are known for high price volatility. External events, such as market crashes, hacks, or regulatory announcements, can cause rapid and unpredictable price swings.
- Loss of Capital: There is no guarantee of returns on any RWA investment. You may lose your entire principal amount, and in some cases, you could incur liabilities exceeding your initial investment (e.g., due to leverage or margin requirements in related products).
2. Regulatory and Compliance Risks
The regulatory landscape for RWAs is evolving and varies by jurisdiction. The Platform emphasizes compliance, but we do not guarantee that any listed projects or resources meet all applicable laws.
- Regulatory Uncertainty: Governments and regulatory bodies may impose new restrictions, bans, or requirements on RWAs, tokenized assets, or blockchain activities. Changes in laws related to securities, anti-money laundering (AML), know-your-customer (KYC), taxation, or sanctions could adversely affect the legality, value, or accessibility of RWAs.
- Non-Compliance Risk: Issuers or projects listed on the Platform may fail to comply with relevant regulations, leading to enforcement actions, asset freezes, or invalidation of tokens. As a user, you are responsible for ensuring your activities comply with the laws of your jurisdiction.
- Jurisdictional Restrictions: Certain countries or regions prohibit or restrict RWA activities. Accessing the Platform from restricted jurisdictions may expose you to legal risks, including fines or penalties.
3. Technological and Operational Risks
Blockchain and smart contract technologies underpin RWAs, introducing unique vulnerabilities.
- Smart Contract Risk: RWAs often rely on smart contracts, which may contain bugs, vulnerabilities, or design flaws. Exploits could result in loss of funds, unauthorized transfers, or asset devaluation. Audits do not eliminate all risks.
- Cybersecurity Risk: Hacking, phishing, malware, or distributed denial-of-service (DDoS) attacks on blockchain networks, wallets, or third-party services could compromise your assets or personal information.
- Operational Failures: Errors in issuance processes, platform downtimes, or failures in intermediary services (e.g., legal advisors, auditors) could disrupt transactions or lead to losses. The Platform does not control or endorse third-party services.
- Custody and Wallet Risks: Storing RWAs requires secure digital wallets. Loss of private keys, wallet hacks, or custodian insolvency could result in irreversible asset loss.
4. Credit and Counterparty Risks
- Issuer Default Risk: RWA issuers may default on obligations, such as redemption or yield payments, due to insolvency, fraud, or mismanagement. Underlying real-world assets (e.g., property or debt instruments) may underperform or become worthless.
- Counterparty Risk: Transactions involving third parties, such as exchanges or intermediaries, carry the risk of their failure to perform, including bankruptcy or fraud.
5. Economic and External Risks
- Inflation and Interest Rate Risk: Changes in inflation rates or monetary policies could diminish the real value of RWAs, particularly those tied to fixed-income assets.
- Geopolitical and Macroeconomic Risks: Global events, such as wars, pandemics, trade disputes, or economic recessions, can impact asset values and market stability.
- Environmental and Sustainability Risks: For RWAs linked to physical assets (e.g., commodities or real estate), factors like climate change, natural disasters, or environmental regulations may affect performance.
6. Platform-Specific Considerations
- Informational Nature Only: The Platform provides general resources and does not offer personalized advice. All content, including project lists, guides, and insights, is for educational purposes and may contain inaccuracies or become outdated. We do not verify third-party information.
- No Guarantees: Listings on the Platform do not imply endorsement, safety, or profitability. Success stories are historical and not predictive.
- User Responsibility: You must conduct independent due diligence. Reliance on Platform content is at your own risk.
7. Additional Warnings
- Speculative Nature: RWAs are speculative and may be influenced by hype, misinformation, or market manipulation.
- Tax Implications: RWA activities may trigger tax liabilities, including capital gains taxes. Tax laws vary and can change; consult a tax advisor.
- Not Insured: Unlike traditional bank deposits, RWAs are not insured by government schemes (e.g., FDIC) against loss.
- Suitability: RWAs are high-risk and may not be appropriate for risk-averse individuals, those with limited financial knowledge, or those unable to afford potential losses.
8. Acknowledgment and Agreement
By using the Platform, you confirm that:
- You understand and accept all risks outlined in this Statement.
- You will not hold the Company liable for any losses arising from RWA-related activities.
- You agree to indemnify the Company against claims related to your use of the Platform or RWA engagements.
This Statement may be updated periodically. Continued use of the Platform constitutes acceptance of revisions. For questions, contact us via “Contact Us”.
If you are unsure about any risks or the suitability of RWAs for your situation, do not proceed and seek professional guidance.
