Risks & Disclaimers
Investing in Wagon Network involves certain risks. While we prioritize transparency and on-chain accountability, it is important for every user to understand the potential risks involved before participating in any lending pool or investment opportunity.
1. Default Risk from Borrowers (MSME)
Risk: Borrowers may fail to pay rental obligations or cease operations entirely.
Mitigation:
Strict eligibility screening and credit scoring.
Legal right to repossess leased assets.
Collateral recovery and asset liquidation mechanisms.
2. Asset Operational Risk
Risk: Logistics assets (e.g., trucks) may be unproductive or suffer damage.
Mitigation:
All financed assets are comprehensively insured.
Routine maintenance and operational inspections.
3. Asset Depreciation Risk
Risk: The value of physical assets may decline due to wear or market conditions.
Mitigation:
Each project is time-limited to preserve asset value at the end.
Insurance coverage protects against physical damage or loss.
A portion of rental income is set aside regularly to ensure principal repayment at maturity, reducing dependency on final asset value.
4. Smart Contract or Technical Risk
Risk: Bugs or vulnerabilities in smart contracts may affect fund distribution or security.
Mitigation:
All contracts undergo third-party audit and are open-sourced.
Emergency stop and upgrade features are built into the protocol.
5. Liquidity Risk in Secondary Market
Risk: Tokens representing fractional ownership of assets may not be easily sold on the secondary market.
Mitigation:
Wagon provides an internal marketplace.
6. Regulatory Disclaimer
Wagon Network operates in alignment with current regulatory frameworks.
Users are responsible for understanding applicable tax and legal obligations in their jurisdiction.
🛡 Disclaimer
This platform does not provide investment advice. Participation in asset-backed DeFi pools involves risks, and past performance does not guarantee future returns. Users are encouraged to do their own research and assess their risk tolerance before participating.
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