Risk Summary

1. You could lose all the money you invest

• The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
• The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

2. You should not expect to be protected if something goes wrong

• The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime – in other words, this type of investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here.
• The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here

3. You may not be able to sell your investment when you want to

• There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
• Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.

4. Specific Fan Token risks

• Supply and demand (Up and Down Risk): The value of Fan Tokens might be subject to change based on supply and demand conditions which might be influenced by different crypto market factors.
• Heart Over Head (Feelings Risk): Emotional responses to a team’s performance could lead fans to make decisions that aren’t the best for their money.
• Hard to Sell (Liquidity Risk): Fan Tokens might not be easy to sell or swap for other things, which can be a problem when you want to get rid of them.

5. Locker Room Feature risks

• Users who use the Locked Locker Room Feature will have their Fan Tokens tied up for the duration of the Locking Period. This means they won’t be able to sell or transfer their Fan Tokens during this time, even if they want to do so, but they can still continue using them on the App to access the different App Features.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about cryptoassets, visit the FCA’s website here.