Legal & Regulatory

Key Risks & Disclosures

Important risk disclosures you should read and understand before investing on the Tribe platform.

Regulatory Disclosure

Tribe Tokenisation FZE (DWTC), "Tribe" is pending regulatory license by the Virtual Assets Regulatory Authority (VARA).

Disclaimer

Please be aware that all information provided by Tribe is intended to assist you in making informed decisions, but you must conduct your own due diligence and analysis before making any investment decisions, and that information provided by Tribe should not be construed as investment advice. It is important that you understand that investing involves risks, and there is no guarantee of profit or protection against loss. Therefore, if you are uncertain about any investment, we recommend seeking the advice of an independent financial advisor before proceeding.

Client Money Account

Please be advised that client funds are kept in a separate account with Zand Bank P.J.S.C and are managed by Tribe. While Tribe has conducted due diligence on Zand Bank P.J.S.C custodial systems and controls and deemed them suitable for holding client funds, please be aware that Zand Bank P.J.S.C does not have a direct relationship with Tribe clients. Therefore, it is essential to note that Tribe is solely responsible for maintaining proper segregation of customer funds deposited in the client money account. In the unlikely event of an insolvency, liquidation, or other distribution related to Tribe, which is a VARA regulated firm, client funds will be handled in accordance with the Client Money Rules set out in Part IV of the VARA Compliance and Risk Management Rulebook.

Please take into consideration that investing always comes with risks, and you should carefully evaluate the risks associated with any investment before making a decision. We recommend that you seek independent financial advice if you have any questions or concerns about investing in this opportunity.

Risk Warnings

Material Risks Associated with Virtual Assets

Investing in or transacting with Virtual Assets involves significant risks. Before engaging with any Virtual Asset services, you must understand and accept the following:

a) Loss of Value

Virtual Assets may lose their value in part or in full and are subject to extreme volatility at times. Price fluctuations can be sudden and significant, and there is no guarantee of maintaining or recovering value.

b) Transfer Limitations

Virtual Assets may not always be transferable, and some transfers may be irreversible. Once a transaction is executed, it may be impossible to reverse or recover funds sent in error.

c) Liquidity Risk

Virtual Assets may not be liquid. There is no guarantee that you will be able to sell or exchange your Virtual Assets when desired or at a price you consider acceptable.

d) Privacy and Transparency

Some Virtual Asset transactions are not private and may be recorded on public distributed ledger technologies (DLTs). Transaction details, including wallet addresses and amounts, may be permanently visible to the public.

e) Security and Fraud Risk

Virtual Assets may be subject to fraud, manipulation, theft (including through hacks and other targeted schemes), and may not benefit from legal protections. Cybersecurity breaches, scams, and unauthorised access to wallets or accounts can result in total loss of assets.

f) No Deposit Protection

Virtual Assets held with Tribe do not benefit from a government-backed deposit protection or insurance scheme. In the event of loss or theft, you may not be able to recover your Virtual Assets. Note: client funds (money) are held separately at Zand Bank in a segregated client money account — please refer to the Client Money Account section above for details.

g) Regulatory Risk

The regulatory treatment of Virtual Assets continues to evolve. Changes in laws, regulations, or government policies may adversely affect the value, use, transfer, or taxation of Virtual Assets.

Real Estate Investment Risks

Investing in real estate via Tribe entails a level of risk and may result in an inability to achieve expected returns. Utilising credit or borrowed funds to invest in Tribe further elevates the level of risk. Fractional ownership introduces additional risks, and the timing of your exit may also impact your investment. To mitigate against potential risks, we strongly advise diversifying your Tribe investments across multiple properties to reduce exposure to any one property that could be affected by issues such as tenant default or specific problems that may impact its value. It is strongly recommended that investors meticulously assess their financial situation and investment objectives prior to making any investment decisions.

Income

While Tribe provides rental income estimates, they are not guaranteed and may turn out to be lower than anticipated, or may stop altogether for certain periods. Investors may also experience a decrease in cash receipts and available distribution if tenants do not fulfil their obligations or if vacancies arise. In addition, the value of the investment in real estate is speculative, and rental income is not assured. Past performance and forecasts are not reliable indicators of future performance, and the real estate market can experience a downturn that can affect the property's value. There may also be government restrictions on the sale of a property to foreign owners, which may limit the range of potential buyers. In case the operator ceases to carry on its business, investors may lose their capital, incur costs, or experience delays in the investment being wound up. Therefore, investors are advised to individually assess and establish their comfort level with the risks involved before investing in Tribe.

Tradability

Investors in this type of investment will directly own the underlying property and the Tribe Platform offers a secondary market to buy and sell ownership. Regardless, investors must understand that they may not be able to easily liquidate their investment before the end of the investment period.

Although the secondary market may provide an opportunity to advertise your investment for sale to other Tribe investors, there is no guarantee that there will be potential investors available to buy your investment at a price that you consider reasonable. This may require you to wait until the end of the investment term for an exit. Additionally, even at the end of the term, exiting the investment will depend on the completion of a transaction to sell the underlying property, which could take several months. Please carefully consider your investment goals, risk tolerance, and financial situation before investing in this often illiquid asset class.

Legal Disclaimer

This disclosure does not constitute financial, legal, or investment advice. All individuals engaging in virtual asset activities should seek independent professional advice and ensure compliance with all applicable laws and regulations. By proceeding with virtual asset transactions, users accept full responsibility for the associated risks and any resulting financial losses.