# Risk Disclosures Dealing in Tokens involves a high degree of risk and may be suitable only if you can evaluate the risks and bear a complete loss of capital. This list is not exhaustive. #### 1) Structural segregation and limited recourse risk Tokens are Series-limited, limited-recourse blockchain-based contractual certificates. Tokenholders have recourse only to the Series Assets of the relevant Series (after Series costs/fees). If Series Assets are insufficient (market losses, counterparty failure, hacks, settlement issues, or other risks), Tokenholders may recover less than principal or nothing. Tokenholders have no recourse to Series Assets of other Series and, to the maximum extent permitted by law, no recourse to Operational Assets. #### 2) No ownership of underlying Tokenholders do not directly own or control any Underlying or Series Assets. Tokenholders hold only contractual rights under the Product Documentation. #### 3) Market, strategy, and performance risk Token value may be linked to strategy/Underlying performance. Losses may occur. Past performance is not indicative of future results. #### 4) Valuation, tracking, and timing differences Valuation may differ from reference prices due to fees, operational timing, market disruptions, illiquidity, execution costs, and settlement constraints. #### 5) Liquidity and transferability risk There may be no secondary market. Tokens may be illiquid and/or subject to transfer restrictions. #### 6) Redemption and settlement risk Redemptions may be delayed by SLAs, compliance checks, Market Disruption Events, illiquidity, and operational constraints. Settlement may involve banking, stablecoin, or blockchain risks. #### 7) Third-party and counterparty risk The Issuer relies on third parties (custodians/MPC providers, exchanges, prime brokers, banks, blockchains, oracle providers, protocol operators, infrastructure vendors). Failures, insolvencies, hacks, or outages may impact a Series. #### 8) Smart contract and cybersecurity risk Bugs, exploits, governance attacks, key compromise, bridge failures, oracle failures, and other incidents can cause partial or total loss. #### 9) Blockchain and network risks Congestion, high fees, forks, re-org, consensus failures, validator/miner attacks, and emerging technology risks may disrupt operations. #### 10) Regulatory and enforcement risk Laws and interpretations may change rapidly. The Issuer may restrict jurisdictions, suspend features, or cease operations in some markets. #### 11) Tax risk Tax treatment may be uncertain and may change. Withholding may apply. You are responsible for your tax compliance. #### 12) Operational and key-person risk The Issuer may face execution, staffing, vendor, and business continuity risks. #### 13) Unanticipated risks New risks may emerge that are not presently foreseeable. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.yield.fi/legal-documents/terms-and-conditions/risk-disclosures.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.