Primcast
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Risk disclosures

Tokenised energy assets are investments and can lose value, including all of it. This list is not exhaustive. Read each asset's own documents (linked from its page) before investing.

Asset and issuer risk

  • Performance. Revenue depends on production, prices, offtake agreements, equipment, weather, grid access and regulation. Dividends can be lower than expected or stop.
  • Issuer conduct. The issuer operates the asset, decides when to distribute and funds redemptions. The chain cannot force any of these.
  • Issuer powers. The issuer can mint more units (dilution), change the redemption price and maturity, pause the token, freeze holders, force transfers and burn units. See RWA token.
  • Legal link. Your rights over the physical asset depend on the issuer's legal structure and on the law that governs it, not on the token contract.
  • Redemption. Redemptions pay only from a pool the issuer funds. An underfunded pool means execution waits.

Platform and governance risk

  • Upgrades without a timelock. The governance Safe can change any application contract immediately. See Trust & security.
  • Smart-contract risk. Bugs may exist. See the audit status in Trust & security.
  • Operator risk. Primcast runs the single sequencer and, at launch, the validator allow-list.
  • Registrar risk. A registrar's error or misconduct can wrongly freeze you or wrongly admit others.

Liquidity and market risk

  • Thin markets. Secondary liquidity may be small or absent. Prices on the DEX can move sharply and differ from any redemption value.
  • Transfer restrictions. You can only sell to eligible buyers, and a paused or matured token cannot be traded normally.
  • Withdrawal delay. Moving funds to Ethereum takes about a week.

Settlement and technology risk

  • Stablecoins. USDC and USDT are issued by third parties, which can blacklist addresses. A stablecoin can lose its peg.
  • Bridge. Funds that move between Ethereum and Primcast rely on the canonical Arbitrum bridge.
  • Wallet security. Lost keys cannot be recovered by Primcast. An issuer's forced transfer is a legal remedy, not a support service.
  • Data. AssetHub readings are reported by operators, generally the issuer. See AssetHub.

Compliance risk

  • Eligibility can change. If your KYC expires, your accreditation lapses or your jurisdiction is no longer allowed, you may be unable to buy more, claim dividends or complete redemptions until it is restored. On KYC-gated tokens an expired KYC also blocks selling.
  • Sanctions. Sanctioned addresses are blocked at every layer.
  • Public data. Your balances and transactions are public on-chain, although your identity is not.