Home General Help ⚠️ SecondaryDAO Risk Disclosure Summary

⚠️ SecondaryDAO Risk Disclosure Summary

Last updated on Jul 11, 2025

⚠️ SecondaryDAO Risk Disclosure Summary

Last updated: April 21, 2025
This summary is for informational purposes only and does not constitute financial advice.

📌 Why Risk Disclosure Matters

Investing in tokenized real estate on SecondaryDAO carries both opportunity and risk. While our platform is designed for transparency, security, and ease of use, it’s important you understand the risks involved before buying property tokens.

🏠 Real Estate Investment Risks

Even tokenized real estate is subject to traditional real estate risks, including:

  • Property Damage: Fires, floods, or disasters can temporarily halt income and reduce property value.
    Mitigation: We carry insurance and maintain repair reserves.

  • Market Fluctuations: Real estate values can drop due to local conditions or broader economic changes.
    Mitigation: We update property valuations regularly and encourage diversification.

  • Economic Shocks: Rising interest rates or inflation can reduce demand and increase costs.
    Mitigation: We use stablecoins (USDC/USDT) and maintain flexible minimum investment thresholds.

💸 Token-Specific Risks

Tokenizing real estate introduces additional considerations:

  • Liquidity Risk
    You may not be able to sell your tokens quickly or at your desired price—especially in thin markets.
    We operate a secondary market to help match buyers and sellers.

  • Governance Risk
    Some decisions (e.g., major repairs) require DAO token holder votes. Low participation can delay action.
    We enforce voting thresholds and educate users on participation.

  • Platform Downtime
    Technology failures can impact token trading or rental income distribution.
    We use redundant infrastructure and perform regular failover tests.

🛡️ Cyber & Security Risks

  • Smart Contract Bugs: Undiscovered code vulnerabilities may allow unauthorized access.
    We conduct external audits and monitor all contracts post-launch.

  • Asset Theft: While most user funds are kept in cold wallets, a portion remains in hot wallets to support real-time transactions.
    We cap hot wallet exposure and use multi-signature access.

  • Data Breach: Unauthorized access to your personal data (e.g., KYC details).
    We use AES-256 encryption, multi-factor authentication (MFA), and role-based access controls.

  • Compliance Failures: If we or our partners fail to comply with El Salvador’s digital asset laws, it could impact your access to tokens or funds.
    We undergo regular audits and report any suspicious activity to regulators.

  • Jurisdictional Limitations: Some users may not be able to invest or trade due to local laws.
    We screen users during onboarding and restrict access where required.

🔄 What We’re Doing to Protect You

  • Real-time AML/KYC checks and transaction monitoring

  • Insurance and reserves for physical damage

  • Regular property valuations and smart contract audits

  • Detailed logging and quarterly risk reviews

  • Transparent governance through DAO voting

🚨 Final Notes

All investments carry risk. Never invest more than you’re prepared to lose.

We encourage you to:

  • Diversify your holdings across multiple properties

  • Review each property's Data Quality Score and Historical Performance

  • Ask questions before investing—our team is here to help

📞 Questions or Concerns?

  • General Support: Chat with us anytime by going to app.secondarydao.com and clicking on the chatbot on the bottom right.

  • Legal or Risk Questions: support@secondarydao.com

  • Need Help Making a Decision? Consult a licensed financial advisor

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