Key Risks Notice

1. Market Risk

Market conditions and macroeconomic factors can affect the value of assets. Volatility in real estate, luxury assets, or financial markets can lead to rapid fluctuations in investment values. Inflation, interest rates, and geopolitical events may also influence returns.

2. Liquidity Risk

Fractional assets may not be readily tradable or sellable in secondary markets. This could prevent investors from exiting their positions quickly or at expected prices. Market depth and demand may vary widely.

3. Counterparty Risk

Risk of default or non-performance by other co-owners, property managers, token holders, or service providers can result in delays, disruptions, or losses.

4. Regulatory and Legal Risk

Regulatory environments differ across jurisdictions and may change over time. Legal interpretations of tokenized assets, fractional ownership, or smart contracts may shift, potentially impacting investor rights, tax obligations, or operational viability.

5. Technology and Cybersecurity Risk

The platform relies on digital infrastructure, blockchain smart contracts, and cloud systems. Vulnerabilities may lead to security breaches, data leaks, or hacking. Smart contract flaws may cause asset loss or manipulation.

6 Operational Risk

Unexpected business disruptions such as technical outages, supplier failures, fraud, or internal mismanagement can affect platform performance. Errors in data entry or transaction processing may result in discrepancies or financial consequences.

7. Jurisdictional and Currency Risk

Cross-border ownership involves risks related to foreign exchange fluctuations, repatriation restrictions, or political instability. Some regions may impose capital controls or introduce regulations that limit access to certain assets.

8. Reputational Risk

Association with disputed assets, fraudulent actors, or unverified asset listings may harm investor confidence. Mismanagement of public communications or regulatory investigations may impact platform credibility.

9. Valuation and Pricing Risk

AI-powered or third-party valuations may differ from actual market value. Discrepancies between perceived value and sale price may occur due to market sentiment or lack of buyers.

10. Taxation Risk

Tax liabilities may vary depending on asset type, jurisdiction, and investor residence. Tokenized assets may trigger reporting obligations or tax audits, and classification disputes may arise.

11. Force Majeure Risk

Unpredictable global events—natural disasters, pandemics, wars, or systemic financial crises—can impair operations, disrupt markets, or render contracts unfulfillable. Disclaimer: This Key Risks Notice is not exhaustive and does not replace personalized financial or legal advice. Investors are urged to consult professional advisors before participating in any offering or transaction on the Walter platform.