Liquidity Risk

The acquisition of Tokens has liquidity concerns that could result in a Token holder losing money: Our Tokens have no existing trading market, and we cannot promise that they will be traded on any exchange or secondary market. The Tokens are a fresh issuance of digital assets for which no public market has been established.

Finally, due to poor or non-existent demand or negotiability, it may be difficult to sell real estate assets at times. In such situations, we may have difficulty negotiating or disposing of such assets at a reasonable price or within a reasonable time frame. As a result, we rely on the income from our assets to provide Token holder dividends.

In order to address the liquidity concerns above, the Reitcircles platform has taken an integrated approach as shown in the image below. This will enable cycling of liquidity between the real estate market and the platform Liquidity pool, by using treasury system. In addition passive income generation will be enabled using staking pools in the Cardano ecosystem.