Risk Disclosure

Important information about investing in intellectual property through IPX

Last Updated: October 11, 2025

IMPORTANT NOTICE

Investing in intellectual property tokens involves substantial risk and may result in the complete loss of your investment. Please read this entire disclosure carefully before making any investment decisions.

General Investment Risks

Loss of Investment

You may lose some or all of your investment. There is no guarantee that any project will generate revenue or returns. Entertainment and creative projects are inherently risky and unpredictable.

Illiquidity

IP tokens may be difficult or impossible to sell. There is no guarantee of a liquid secondary market for any tokens you purchase. You should be prepared to hold your investment indefinitely.

Volatility

The value of IP tokens may be subject to significant price volatility due to market conditions, project performance, and other factors beyond our control.

Project-Specific Risks

Production and Completion Risk

Projects may not be completed as planned or may be abandoned entirely. Budget overruns, creative disagreements, or other factors may prevent completion.

Market Reception Risk

Even completed projects may not achieve commercial success. Audience tastes are unpredictable and competition in entertainment is fierce.

Revenue Distribution Risk

Revenue distributions, if any, may be less than expected or delayed. Revenue accounting can be complex and disputed. Many entertainment projects never achieve profitability despite generating revenue.

Platform and Technology Risks

Platform Risk

IPX is a technology platform and startup company. We may fail as a business, which could affect your ability to access your investments or receive distributions.

Smart Contract and Blockchain Risk

IP tokens are managed by smart contracts on blockchain networks. Bugs, vulnerabilities, network failures, or other technical issues could result in loss of funds or functionality.

Cybersecurity Risk

Despite our security measures, cybersecurity breaches could result in unauthorized access to your account or theft of your tokens.

Regulatory and Legal Risks

Regulatory Uncertainty

The regulatory treatment of tokenized securities is evolving. Future regulations could affect the value, transferability, or legality of your investments.

Tax Considerations

The tax treatment of IP tokens is uncertain and may change. You should consult with a tax advisor about your specific situation.

Limited Rights

IP token holders have limited rights compared to traditional equity investors. You may have limited ability to influence project decisions or enforce your rights.

Suitability

Investing in IP tokens is suitable only for investors who:

  • Can afford to lose their entire investment
  • Have sufficient knowledge and experience to evaluate the risks
  • Understand that investments may be illiquid for extended periods
  • Do not need immediate access to invested funds
  • Have adequate financial resources to bear investment losses

No Investment Advice

IPX does not provide investment advice. The information on our platform is for informational purposes only. You should consult with qualified financial, legal, and tax advisors before making any investment decisions.

Forward-Looking Statements

Project descriptions may contain forward-looking statements about expected outcomes, revenues, or other matters. These are predictions only and actual results may differ materially. Do not rely on forward-looking statements when making investment decisions.

Questions?

If you have questions about these risks or need clarification, please contact our investor relations team.

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