Know before you trade

Real securities carry real risk.

Tokenized funds can lose value, liquidity can dry up, and on-chain settlement is final. Here are the risks in plain language — the full legal version lives in our Disclosures.

The big six

What can go wrong.

Market risk

Tokens track real funds — equities, real estate, money markets. When the underlying falls, so does your token. Loss of principal is possible.

Liquidity risk

FUDEX is peer-to-peer — no market maker, no order book. If no member is offering, you may not be able to sell promptly, or only below NAV.

NAV & pricing risk

P2P prices can drift above or below NAV, and the oracle can lag the official figure — especially outside market hours or in volatility.

Technology risk

Settlement is irreversible; smart contracts can have defects; networks can congest; oracles can fail. Lost credentials delay access until identity-verified recovery completes.

Regulatory risk

Rules for tokenized securities are still evolving and differ by jurisdiction. Future changes could affect transferability, listings, or availability where you live.

Card & spending risk

FUDEX Card payments redeem your fund balance at NAV — spending reduces your invested position and may be a taxable event.

Your assets are not bank deposits. They are not FDIC-insured and not covered by SIPC or similar schemes unless expressly stated. Past performance does not predict future results. Nothing on FUDEX.IO is investment, legal or tax advice.
What protects you

Risk we engineered out.

Some risks common to crypto platforms don't apply here, by design.

No synthetic exposure — every token is backed 1:1 by custodied fund shares on a master registry.
No anonymous counterparties — every member is KYC-verified and whitelisted before they can trade.
No lost-key wipeout — ownership survives wallet loss and is recoverable through the registrar.
No unbacked supply — mint and burn require the transfer-agent wallet and a matching registry record.

Informed is the only way to trade.

Read the full Disclosures, then decide if tokenized funds fit your circumstances.