Vault tokens can lose value, including all of it. This page lists the main risks so you can decide whether the vaults suit you. It is not a complete list, and it should be read with the offering documents, which describe the risks in more detail.
Market risk
Each vault holds Bitcoin, gold and, for xBGT, the Nasdaq 100. All of them move, sometimes sharply. Bitcoin has fallen by more than half within months in the past. The Nasdaq 100 is concentrated in a small number of large U.S. technology companies. Holding assets together can reduce swings but does not remove them, and the assets can fall at the same time.
Backtested figures
The performance shown on this site is a backtest using historical prices. The vaults did not trade over that period. Real results will differ because of trading costs, timing, fees and market conditions, and past movements do not predict future ones.
Rebalancing
Weights are reset to target by rule. Resetting sells what has risen and buys what has fallen, which can lag a strong trend. Trades have costs, and in fast markets they may be filled at worse prices than expected.
Tokenised and third-party holdings
Gold is held through gold-backed tokens issued by other companies, and equity exposure depends on brokers and custodians. If any of these firms fails, is hacked, freezes assets or stops redemptions, the vault can lose value or be unable to act for a time.
Smart contract and blockchain risk
The tokens and the vault logic run on smart contracts and public blockchains. Code can contain bugs, networks can be congested or halted, and price feeds can be wrong or late. Transactions cannot be reversed once confirmed.
Liquidity and price differences
Redeeming at NAV is open only to onboarded investors and may be paused in some situations. On exchanges, there may be few buyers or sellers, and the token price can sit above or below NAV for long periods.
Wallet and key risk
If you lose your keys or your wallet is compromised, your tokens can be lost for good. We cannot restore them.
Legal and regulatory risk
Rules for digital assets and tokenised securities are changing and differ from country to country. New rules may limit who can hold or trade the tokens, change how they are taxed, or require us to change, pause or close a vault. You are responsible for your own tax and reporting.
Operational risk
The vaults rely on people, systems and service providers. Errors, outages or failures at any of them can cause losses or delays.
Before you invest
Invest only money you can afford to lose, and only after reading the offering documents. If you are unsure whether the vaults suit you, ask an independent adviser. Nothing on this site is a recommendation to invest.