Risk factors

Risks of investing

These are some of the main risks. Each offering's documents describe them in full. Don't invest money you can't afford to lose.

You could lose your entire investment.
A diamond pays no rent or dividends. Your return depends on share prices and any majority sale.
There may be few buyers when you want to sell. Prices can swing, and shares may trade below the stone's appraised value.
Trading fees reduce what you receive when you sell and add to what you pay when you buy.
$BDE staking rewards are guaranteed only as a number of tokens, and only for the first five years. If $BDE's price falls, so does the value of your rewards, and rewards paid from the reserve dilute holders who don't stake.
$BDE distributions, and staking rewards after the first five years, depend on company revenue, which depends on trading volume. They may be reduced, suspended or never paid.

Prices can fall, and past price rises may not continue.
Appraisals are opinions. A sale may fetch less, and even top stones can fail to find a buyer at auction.
Each token represents one stone, so the value of your shares rests on a single diamond.
Lab-grown stones could weigh on demand or prices.
A stone could be lost, stolen or damaged beyond what insurance covers.

Smart contracts, wallets and the Hedera network could fail or be attacked.
If you lose access to your wallet, you may lose your shares.
If another holder acquires more than 50% of a stone's shares, you can be required to sell yours at their price, even if you'd rather keep them.
The DAO holds the stones for token holders. If the DAO faced legal claims or insolvency, your ownership of a stone could be challenged.

Laws on tokenized securities are changing and could force changes to our model.
Our trading venue must stay registered. If it can't operate, shares may be hard to sell.
We're an early-stage company with no operating history, and we rely on a small team to find stones.
Our team and partners may have conflicts of interest, which offering documents will disclose.