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Investment risks

You can lose everything you invest.

Krows makes the rules public and releases money by milestone. It does not make startup investing safe. Read this calmly before you start.

The essentials, with examples.

01

You can lose everything

Very high

Most startups fail. If the project closes, your tokens may be worth nothing.

For exampleYou invest €1,000 and the project closes after spending two milestones: you only get your share of what is left, or nothing.

What to doOnly invest what you can lose entirely.

02

You may not be able to sell

Very high

The investor marketplace does not exist yet. Your money may be locked up for years.

For exampleYou need the money in six months and there is no one to sell your tokens to.

What to doDo not invest money you will need.

03

The founder may fail or lie

High

Milestones and the referendum limit the damage, but do not remove it.

For exampleA milestone’s proof looks good, it is approved and then turns out to be false.

What to doReview proof, ask in the chat and vote.

04

Contracts may have bugs

High

All software can have errors or vulnerabilities that get exploited.

For exampleSomeone discovers a bug in a contract and exploits it before it is fixed.

What to doCheck audits and diversify.

05

Stablecoins can fail

Moderate

USDC could lose its peg to the dollar, even temporarily.

For exampleThe treasury holds 100,000 USDC and for a few days they are worth $95,000.

What to doUse stablecoins regulated under MiCA.

06

You look after your wallet

Very high

If you lose your phrase or it is stolen, no one can give your funds back.

For exampleYou store the phrase in a photo, your phone is stolen and your wallet is emptied.

What to doPhrase on paper, in two places.

07

Solana can fail

High

The network can get congested or halt temporarily.

For exampleA vote closes while the network is down and you cannot vote in time.

What to doDo not wait until the last day to vote.

08

The law can change

High

Changes in crypto-asset regulation can affect projects or Krows.

For exampleA new rule forces a project to stop offering its tokens in your country.

What to doFollow reports and news.

09

Taxes

Moderate

Gains are taxed and crypto tax rules are complex.

For exampleYou receive a refund after a referendum and do not know how to declare it.

What to doKeep your history and consult an adviser.

Why spreading matters more than picking.

In startups, a few investments make up for many losses. Move the control and see what happens to €1,000 spread across more or fewer projects.

€1,000 spread across startups
5
LostFlat×3×12
—Final value
—Projects lost
—Projects that win
Random, illustrative simulation with made-up probabilities. It does not predict real results.

Before investing, check this.

If you cannot tick everything, better wait.

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Formal risk disclosure

This disclosure is part of the terms of use. By investing through projects published on Krows, the user acknowledges having read and understood it.

  1. Risk of total loss. Investing in early-stage companies is high risk. Most such companies do not reach their goals or fail. Investors may lose all the capital invested. Tokens are not covered by any deposit guarantee, investor compensation or other protection scheme.
  2. Liquidity risk. There is currently no secondary market on Krows. It may not be possible to sell the tokens at any time or price. Investors must be prepared to hold their investment indefinitely.
  3. Nature of the tokens. Tokens are issued by each founder and their rights are defined in their white paper. They are not shares: they do not grant ownership rights in the company, dividends or corporate voting rights. Investors must read the white paper before investing.
  4. Issuer risk. The founder may fail to deliver milestones, mismanage released funds, provide inaccurate information or act fraudulently. The milestone, reporting, trust score and referendum mechanisms reduce but do not remove this risk. Krows does not verify or guarantee the information published by founders.
  5. Technology risk. Smart contracts and the Solana network may contain bugs, suffer attacks, congestion or outages. Blockchain operations are irreversible. A technical failure may cause the loss or freezing of funds.
  6. Self-custody risk. Investors hold their own crypto-assets. Loss, theft or exposure of the recovery phrase or private key may mean irreversible loss of funds. Krows cannot recover wallets or reverse operations.
  7. Stablecoin risk. Stablecoins may lose their peg or be affected by issuer problems or regulatory measures. The euro value of the investment may vary with the euro-dollar exchange rate.
  8. Regulatory and tax risk. Crypto-asset regulation and taxation are evolving and may change, affecting the validity, marketing or tax treatment of tokens. Investors are responsible for their tax obligations.
  9. No advice. Krows does not assess whether any investment is appropriate or suitable for the user. Platform information is not advice. Each investor decides at their own risk.
  10. Concentration and diversification. Concentrating the investment in one or a few projects increases risk. It is advisable to commit only a small part of your wealth to this type of investment and to diversify.

Warning. Krows is a technology provider, not an entity authorized to provide investment or crypto-asset services. The offers published have not been reviewed or approved by Krows or, unless the founder states otherwise, by any authority.