Risk Disclosure

Read this before you use Arivion

Crypto assets and tokenized stocks carry high risk. You could lose some or all of the money you put in. This page explains the main risks, but it can't list every one. It's part of our Terms of Use.

1. Prices can move fast

• Crypto and stock prices can rise or fall sharply and quickly. Past performance says nothing about the future.
• Tokenized stocks follow the share price, but they trade onchain around the clock. While US exchanges are closed, on weekends, holidays and overnight, their prices can move on less information and may jump when the market reopens.
• Onchain prices can differ from exchange prices.

2. Tokenized stocks aren't shares in a brokerage account

Each tokenized stock is issued by a third party and is governed by that issuer's terms. Common to all of them:

• If the issuer or the custodian holding the underlying shares fails, becomes insolvent, makes a mistake or acts wrongly, your tokens could lose some or all of their value.
• You usually don't get voting or other shareholder rights. Dividends and corporate actions are handled the way the issuer decides.
• Only holders the issuer accepts can redeem tokens for the underlying asset, usually through an account with the issuer.
• Issuers can change their terms, pause transfers, or freeze tokens, and they decide which countries they serve.
• The tokens aren't issued, sponsored or endorsed by the companies whose shares they track.

Backpack Securities stocks

According to Backpack Securities, each token is backed 1:1 by a real share held in custody. According to the token disclosures published on Sunrise, the tokens are digital trust receipts issued by Trek Nexus Markets Ltd (British Virgin Islands). They aren't securities under British Virgin Islands law, and they don't give you ownership of the company, of Backpack or of the issuer. Redeeming a token for the real share needs a Backpack account, depends on Backpack's terms and your country, and isn't guaranteed. The tokens aren't available to US persons or residents of Canada or mainland China. See Backpack's legal documents.

xStocks

xStocks are issued by Backed Assets (JE) Limited (Jersey). According to the xStocks documentation, each is backed 1:1 by the stock or ETF, held by a regulated custodian, and dividends are added to your token balance. They generally don't include voting rights, and only investors that Backed has approved can redeem with Backed. Backed doesn't serve individuals in some countries, and its restricted-countries list currently includes the Philippines. That means you may not be able to deal with Backed directly, including to redeem. xStocks aren't available to US persons or in the United Kingdom. See Backed's legal documents.

After a stock split or similar event, a token's balance or price can be adjusted, so one token's onchain price may not equal the price of one share.

Tokenized gold (PAXG)

PAXG is issued by Paxos. Paxos says each token is backed by one troy ounce of gold held in vaults. Redeeming it for gold or cash goes through a Paxos account, under Paxos's terms.

3. You may not get the price you expect

• Swaps fill against the liquidity available onchain. In thin markets you can get a worse price (slippage and price impact), or no quote at all.
• Quotes are estimates. You might not be able to sell when you want, or at the price you want.
• Anyone can create a token with a familiar name. Tokens you add by pasting a contract address may be fake, worthless or impossible to sell.

4. Transactions and technology can fail

• Blockchain transactions are final. Sending to the wrong address or network usually means the funds are lost.
• Smart contracts, bridges, swap protocols and token contracts can have bugs or be exploited.
• Networks can be congested or go down, and transactions can fail or be delayed.
• If a swap can't be filled, it may be refunded under the swap protocol's refund rules, sometimes as a different asset.
• Wallet apps can have bugs. Your device can be compromised.

5. Scams and phishing

• Fake websites, fake apps, look-alike tokens and impostors on social media are common.
• Arivion will never ask for your recovery phrase or private keys, and will never ask you to send funds to “verify” or “unlock” your wallet.
• Always check that you're on the real Arivion site before connecting your wallet.

6. Stablecoins

Stablecoins such as USDC and USDT are designed to stay at US$1, but they can lose that value. They depend on their issuers, the reserves behind them and regulation, and issuers can freeze them.

7. Arivion depends on others

Arivion relies on third parties it doesn't control: the swap protocol, wallets, blockchains, token issuers, custodians, node providers, and the exchanges you may use to buy or sell crypto. If any of them fails, changes its service or blocks you, you could lose access to your assets or lose money.

8. Laws can change

Rules for crypto assets and tokenized securities are changing in the Philippines and elsewhere, including the Securities and Exchange Commission's rules for crypto-asset service providers. New laws or enforcement could restrict your access, force Arivion to change or stop its service, or affect a token's value or whether it can be transferred.

9. No safety net

• Nothing on Arivion is a bank deposit. It isn't insured by the Philippine Deposit Insurance Corporation or protected by any investor compensation scheme.
• Disputes with token issuers or protocols fall under their terms, often in other countries.

10. Fees and taxes

Fees reduce what you receive, including network and protocol costs. Your transactions may be taxable in the Philippines or elsewhere, and you're responsible for paying and reporting those taxes.

11. Not advice

Everything on Arivion is general information, not investment, financial, legal or tax advice. Think about your own situation, and talk to a licensed professional if you need advice.