RISK
Risk notice
Last updated: May 2026 (DRAFT-v2)
Draft — pending counsel review
This text is preliminary boilerplate and has not yet been reviewed by qualified legal counsel. It is provided for transparency only and is not legally binding. The final version will be published before launch.
Possibility of total loss
Tokenized real-estate investments are not capital-protected. Adverse events — including but not limited to natural disasters (earthquakes, tsunamis, volcanic activity on Lombok or neighbouring islands), regulatory action by Indonesian, EU or other authorities, fraud, operator default or insolvency, or smart-contract exploits — can result in the loss of your entire invested capital. Only invest funds you can afford to lose entirely.
Illiquidity and buyback mechanics
There is no secondary market for the Project NFTs. The buyback facility processes requests strictly first-in-first-out (FIFO) and is fed exclusively by incoming new investor purchases on the same villa; there is no committed liquidity backstop. If the per-villa pool is exhausted, your buyback request stays open and will be re-checked by the matching engine on a rolling basis (the business specification cites a 24-hour retry interval and a 10-day soft wait window). We do not guarantee a payout within any specific timeframe; in adverse market conditions a queued request may not settle for an extended period.
Smart-contract and blockchain risk
The VillaToken (ERC-1155), custodial wallet and treasury contracts on Polygon mainnet may contain bugs or undiscovered vulnerabilities, may behave unexpectedly during chain reorganisations or upgrades, and may be affected by Polygon-level incidents (validator downtime, bridge incidents, fee spikes). Audits and the production redeploy of the token contract in May 2026 to fix interface compatibility do not eliminate this risk.
Custody risk
The platform signer (a Privy-managed server-side wallet) controls all custodial investor wallets and the treasury. Compromise of the signing key, of the Privy account, or of the Issuer's operational infrastructure could result in unauthorised transfers of NFTs or treasury funds. We mitigate this risk with industry-standard controls (least-privilege access, audit logging, separated environments) but cannot eliminate it. You do not control a private key and cannot self-custody your NFTs under the current model.
Regulatory risk
The offering is structured on the basis of a business concept submitted to the Indonesian financial-services authority (OJK / Otoritas Jasa Keuangan); registration with OJK is in progress and not yet complete. The EU/MiCA classification of the Project NFTs is under review and could result in the offering being classified differently from the present silent-partnership framing. Future regulatory determinations may require us to restrict access (e.g. exclude users from certain jurisdictions), change the product structure, suspend buybacks, or wind down the platform — potentially with adverse impact on the timing and amount of payouts you can receive.
Currency risk
Underlying real-estate cash flows are denominated in Indonesian Rupiah (IDR) while you invest, hold balances and receive payouts in Euro. Adverse EUR/IDR movements can materially reduce your effective returns even when the underlying property performs as expected. The Issuer does not hedge this currency exposure on your behalf. If your home currency is not the Euro, an additional FX leg applies on both the inbound SEPA transfer and any outbound payout.
Real-estate and location risk
Lombok-specific risks include high earthquake and tsunami exposure, dependence on international tourism flows (and on the political and visa regime governing those flows), evolving Indonesian property law — in particular the limitations on foreign ownership and the requirement to hold title via Indonesian company structures — and operational risks of villa management (occupancy below projections, unforeseen maintenance, staff turnover at the local management PT). Occupancy, maintenance costs and resale value can deviate substantially from the projections used to derive the displayed IRR and ERYO figures.
No deposit insurance, no investor compensation scheme
Your EUR balance held on the platform pending investment or withdrawal is not protected by any statutory deposit-insurance scheme — neither the German Einlagensicherung (EdB), the EU Deposit Guarantee Schemes Directive (DGSD), nor the Indonesian Lembaga Penjamin Simpanan (LPS) apply. Funds in transit at Wise are subject to Wise's own safeguarding arrangements with its banking partners. Your Project NFTs are not covered by any investor-compensation scheme (no German EdW, no equivalent in Indonesia).
Past performance and projections disclaimer
Any historical figures, IRR or ERYO projections displayed on the platform or in marketing materials are illustrative targets and based on assumptions about occupancy, operating costs, exchange rates and capital appreciation that may not materialise. They are not promises of return. Past performance is not indicative of future results. The Issuer does not guarantee any minimum dividend, any redemption value, any specific resale price, or any specific buyback timing.