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 lease 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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