Investing in digital securities issued through STOKR carries risk, as with any investment in early-stage or growth-stage issuers. This guide summarises the key categories of risk and confirms STOKR's role and regulatory basis. Always read the full risk disclosures and offering documents for a specific offering before investing.
Key risk categories
- Loss of capital – early-stage and growth-stage issuers carry a high risk of business failure. Only invest an amount you can afford to lose in full.
- Liquidity risk – peer-to-peer transfers are possible, but there is currently no established liquid secondary market, and no assurance one will develop.
- Information risk – it may be difficult to obtain complete information about an issuer's business model, which can change over time.
- Limited voting rights – instruments on STOKR typically carry profit- or revenue-participation rights rather than general voting rights, and any limited voting rights may be subject to dilution.
- Dilution risk – an issuer may raise additional financing in future rounds, which may dilute your existing holding if you do not participate.
- Private-key and custody risk – digital securities are held in wallets secured by a private key or seed phrase. If this is lost without a backup, you may lose access, and recovery may not be possible without a fee.
- Fraud risk – STOKR conducts due diligence on issuers before admission to the platform but cannot control an issuer's actions once an offering has closed.
- Diversification – spreading capital across multiple offerings and asset classes can help mitigate risk.
STOKR does not provide investment advice
STOKR provides the platform, infrastructure, and information necessary for you to evaluate an offering, but the decision to invest rests entirely with you. Conduct independent research and seek independent legal, accounting, or financial advice before investing.
Institutional and professional investors
STOKR serves institutional investors as well as qualified and professional investors. STOKR is registered with the Luxembourg CSSF as both a Crypto-Asset Service Provider (CASP) and a Payment Institution (PI), and applies AML/KYC controls consistent with this registered status to all investors, including institutional investors.