Risk Disclosure & Sensitivities
All investments carry risk. At Karpous, we believe the difference between responsible finance and speculative finance lies in clarity, not avoidance. Every product, asset, and process within the Karpous ecosystem is built around one principle:
Market risk arises from fluctuations in macroeconomic conditions, asset prices, and demand for specific industries. For real-world assets (infrastructure, energy, logistics), returns may be affected by commodity prices, inflation, or shifts in supply chains.
Mitigation:
Diversification
Exposure spread across sectors and jurisdictions.
Yield Structure
Floor-plus-variable models reduce volatility by securing a base return.
Continuous Monitoring
Real-time data on yield performance allows proactive rebalancing or asset replacement.
Karpous focuses on assets with stable, predictable cash flows and long-term contracts sectors resilient to short-term market swings.
Liquidity Risk
Liquidity risk refers to the potential inability to exit an investment quickly or at a fair price. In traditional finance, liquidity depends on institutional reserves a structural weakness that can lead to redemption delays or insolvency during crises.
Mitigation:
Market-Based Liquidity
Each Karpous investment includes a tradeable digital certificate that can be sold on the platform at any time.
Fair Value Adjustment Model
Ensures fair pricing between sellers and buyers, avoiding systemic pressure.
Continuous Secondary Market
24/7 trading ensures exits are always possible, though prices may adjust to reflect market demand.
Liquidity on Karpous is transparent, algorithmic, and independent of institutional balance sheets.
Regulatory & Legal Risk
Changes in regulations or jurisdictional interpretations may impact how digital investment products are classified or distributed.
Mitigation:
Jurisdictional Structuring
Each asset operates within an SPV or trust in a compliant jurisdiction (e.g., Singapore, UAE, Luxembourg).
Partner Licensing
Custodians and payment partners are licensed under relevant financial authorities.
Adaptive Framework
Karpous maintains a modular legal structure that can evolve with regulatory guidance without disrupting investor holdings.
Legal Audit Trail
All contracts are enforceable under traditional law, supported by third-party audits.
Regulatory transparency and proactive alignment are embedded in Karpous's design, not retrofitted later.
Counterparty Risk
Regulatory transparency and proactive alignment are embedded in Karpous’s design, not retrofitted later.
Mitigation:
Operator Due Diligence
Karpous works only with pre-vetted, audited operators.
Custodial Segregation
Investor assets are held separately from platform or operator funds.
Performance Bonds & Insurance
Certain projects include performance guarantees or insurance coverage for operational disruptions.
Continuous Review
Operator performance is re-evaluated periodically; underperforming partners can be replaced.
Karpous maintains operational redundancy and oversight to minimize dependency on any single counterparty.
Operational & Process Risk
Errors in processes, data handling, or system operations may cause financial or reputational loss.
Mitigation:
Standardized Workflows
Institutional-grade compliance and review processes.
Automation
Minimizes manual handling errors in settlements and yield distribution.
Independent Oversight
Internal audits and control reviews quarterly.
Incident Protocols
Clearly defined escalation and correction procedures.
Karpous combines automation with human oversight the reliability of code with the judgment of compliance professionals.
Technology & Platform Risk
Technology risk includes potential vulnerabilities in digital infrastructure, data security, or third-party integrations.
Mitigation:
Coinbase CDP Security
All user wallets are institutionally managed with advanced custody standards.
Infrastructure Redundancy
Multi-layered backups and failover systems ensure continuous platform uptime.
Independent Audits
Regular security audits by third-party cybersecurity firms.
Encryption & Privacy
End-to-end encryption and GDPR-compliant data handling.
Smart Automation Reviews
Periodic review of all automated contracts to prevent execution errors.
The system is FinTech in interface, decentralized in structure, and digitally verifiable underneath making it both familiar and secure.
Currency & FX Risk
While Karpous standardizes returns in USD-equivalent stable assets, investors whose home currency depreciates against the USD may experience conversion effects when withdrawing or reinvesting.
Mitigation:
USD-Based Earnings
Yield and principal denominated in USD equivalents protect against local currency depreciation.
Optional Local Conversion
Users may convert earnings into local currency through partnered financial channels at competitive FX rates.
Global Diversification
Access to global yield helps offset domestic inflation and currency erosion.
Reputational & Platform Risk
As a global platform operating across jurisdictions, reputation and governance risk can affect trust and participation.
Mitigation:
Independent Verification
All major statistics verified by external partners.
Continuous Internal Audit
All processes in the platform will undergo an ongoing internal audit every quarter to ensure good governance and integrity.
Karpous's brand is built on verifiable trust every statistic and claim can be independently confirmed.