> For the complete documentation index, see [llms.txt](https://t-blocks.gitbook.io/t-blocks-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://t-blocks.gitbook.io/t-blocks-documentation/for-investors/risk-factors.md).

# Risk Factors

Investing in T-Blocks instruments involves risks. Investors should carefully consider the following risk factors before subscribing. This is a summary; detailed risk disclosures are provided in each SubFund's prospectus or PPM.

**Issuer and project failure risk.** Investors in a SubFund are exposed to the performance of the underlying asset and the operational capacity of the issuer or asset manager responsible for that asset. In the event that an issuer or asset manager fails — whether through insolvency, operational failure, loss of key personnel, or project-specific deterioration — the SubFund's returns and capital repayment may be materially impaired. Security packages, pledge arrangements, and bondholder representative appointments are structured at the SubFund level to provide downside protection, but these mechanisms cannot guarantee recovery of principal in all scenarios. Investors should conduct independent due diligence on the issuer, asset manager, and underlying asset before subscribing to any instrument.

**Illiquidity risk.** T-Blocks instruments are typically illiquid. There may be no secondary market for the instruments. Investors should be prepared to hold instruments until maturity.

**Credit risk.** The obligor under the underlying asset may default on its obligations, affecting returns to investors.

**Currency risk.** If the SubFund's Reference Currency differs from the investor's base currency, foreign exchange fluctuations may affect returns.

**Regulatory risk.** Changes in applicable laws or regulations (in Luxembourg, the asset's jurisdiction, or the investor's jurisdiction) may affect the instrument's structure, returns, or tax treatment.

**Technology risk.** For the digital rail, risks related to blockchain technology, smart contract vulnerabilities, digital wallet security, and digital infrastructure availability apply. These risks are mitigated by the use of a mature, production-grade blockchain (XRP Ledger), MPC wallet architecture, and independent smart contract security audits, but cannot be fully eliminated. Critically, however, the underlying legal instrument is issued off-chain as a Luxembourg note within a ring-fenced SubFund of T-Blocks Trio Fund. In the event of a wallet compromise, token theft, or smart contract exploit, the authoritative record of investor ownership is the Fund's official register maintained by the Management Company and its administrator — not the on-chain token state. This means that token-level security incidents do not constitute loss of the underlying legal instrument. Ownership can be verified, re-issued, and restored through the Fund's legal and administrative infrastructure independently of the blockchain layer.

**Emerging market risk.** Underlying assets in emerging markets may be subject to political, economic, legal, and operational risks that are greater than those in developed markets.

**Management risk.** The Fund's performance depends in part on the Management Company's ability to manage SubFunds effectively.

**No guarantee of returns.** Past performance is not indicative of future results. Returns are not guaranteed.