# Potential Risks Market.Cards is built around rare player cards, the markets backed by those cards, and Tokenized Interest. Participation involves risk. Before entering, trading, or participating in any card market, please understand the risks below. **Please note in particular: this page is not a complete list of all potential risks; each card market may also have its own applicable listing terms, rules, and risk disclosures.** **No guaranteed returns.** Participation in Market.Cards does not constitute or guarantee any profit, return, appreciation, liquidity, or resale value. The market price of Tokenized Interest may rise, fall, or become illiquid, and you may lose all or part of the amount you invest or pay. Market.Cards does not provide investment, financial, legal, tax, or trading advice. Participants should independently make all decisions to enter, trade, hold, vote, or participate, and bear all resulting risks, losses, and legal consequences. **Tokenized Interest is not physical possession.** Holding Tokenized Interest does not necessarily mean you actually possess the physical card, can redeem it for the physical card yourself, or have unrestricted ownership of the card. Your rights are governed by the applicable listing rules, platform terms, and related legal documents. **Market price risk.** The player-card market may be volatile. Prices may be affected by card rarity, set, player performance and attention, condition, grading, collector demand, market liquidity, and broader sports or cultural events. Past prices, transactions, valuations, grading status, or attention do not guarantee future performance. **Liquidity risk.** A market backed by a card may not always have enough buyers, sellers, or trading activity. You may not be able to enter, exit, or adjust your position at the price or time you expect. **Trading and execution risk.** Orders may not be filled immediately, completely, or at the expected price. Platform maintenance, technical issues, wallet issues, force majeure, and other operational factors may affect your access or trading. Market.Cards may also suspend, halt, or restrict trading in a market for reasons such as settlement, risk controls, technical maintenance, legal compliance, or orderly-market protection. **Voting risk.** Voting does not guarantee that the outcome preferred by any individual holder will occur. A proposal may fail because of insufficient participation, insufficient approval, platform review, legal issues, payment failure, or other rule-based reasons. **Sale proposal risk.** Sale proposals for underlying cards may involve proposer eligibility, bidding, holder voting, platform review, buyer payment, settlement, and proceeds distribution, and may fail, be delayed, or be terminated. **Platform veto / suspension risk.** Market.Cards reserves a limited right to reject, pause, or terminate a proposal or transaction. This right may be exercised only when reasonably necessary, including to protect orderly market conditions, satisfy legal or regulatory compliance requirements, or protect holder interests. Market.Cards will not override a valid holder decision for ordinary commercial reasons. **Custody and platform-insolvency risk.** Physical cards are held in custody by Market.Cards. Custody may still involve risks such as loss, theft, damage, or shipping issues. In addition, if Market.Cards becomes insolvent or winds down, whether holders' priority / beneficial interest in the underlying physical cards is ultimately enforceable depends on the legal structures in place at that time (such as trusts or SPVs) and on the applicable bankruptcy law. Until a formal legal structure is in place, the platform's statement that "physical cards belong to the beneficial assets of holders" should be understood as the platform's stated intent rather than an enforceable legal commitment (see "Custody"). **Grading risk.** Grading may involve cost, delay, shipping, third-party service providers, and uncertainty of outcome. A grading result may be lower than expected and may not increase market value. **Information and valuation risk.** Card information, valuations, reference prices, VWAP, comparable transactions, grading data, and other market information may be incomplete, delayed, inaccurate, or open to interpretation. Any valuation, reference price, or displayed market data should not be treated as fair value or a guarantee of future price. **Draw data-source risk.** The Draw Factor for MintBox depends on the public Binance BTC/USDC spot price at a specific moment. If the data at that moment is delayed, unavailable, or abnormal, it may affect the draw result and verifiability; the platform will handle such cases under the applicable rules. **Regulatory and regional risk.** Market.Cards respects the laws of each country. By using this platform, you confirm that you are not located in any country or jurisdiction that imposes restrictions on Web3, blockchain, or cryptocurrency-related activities, including but not limited to Mainland China, Algeria, Bangladesh, Egypt, Iraq, Nepal, North Macedonia, Bolivia, Qatar, and any country or region subject to comprehensive OFAC sanctions (the list of such countries and regions is subject to the list published by OFAC in real time). **Tax risk.** Participating in these markets may have tax consequences. You are responsible for determining and fulfilling your own tax obligations. Market.Cards does not provide tax advice. **Technology and wallet risk.** Market.Cards involves wallets, Tokenized Interest, smart contracts, transaction signing, and other blockchain infrastructure. You are responsible for protecting your account, wallet, keys, and devices. Any loss caused by improper safekeeping of the foregoing is your responsibility. **Specific listing rules.** Each market backed by a card may have its own terms, parameters, and disclosures, including Tokenized Interest supply, voting thresholds, sale-proposal rules, grading rules, custody information, fees, and settlement processes. Before participating in any market, please read the applicable listing rules. **Business-model and category-evolution risk.** Market.Cards is at an early stage. The platform's evolution from the Phase One "platform-sourced" model toward an open issuance platform (including third-party authorized consignment and community-initiated listing proposals) may involve changes in listing rules, custody arrangements, pricing mechanisms, and revenue distribution. Card categories may also gradually expand from sports cards into anime / manga, TCG, and other Character categories, where valuation anchors, liquidity characteristics, and market dynamics may differ significantly. Any such changes will be governed by official platform announcements and the latest listing rules. **Secondary-market liquidity and value anchoring.** In the short term, the price and liquidity of Tokenized Interest in the secondary market are affected by platform-side buy support, the pace of MintBox fundraising, and market sentiment. Over a longer horizon, the underlying assets (rare player cards today, and other Character-based cards in the future) trade in a real-world market that is relatively active and has a reference price — this external market provides a long-term value anchor for Tokenized Interest. Short-term prices may, however, deviate significantly from that anchor; participants should understand both the possibility of such deviation and the short-term dependency on platform support and overall market participation. **On-chain infrastructure dependency risk.** Market.Cards is currently deployed entirely on Base (the Ethereum Layer 2 incubated by Coinbase), and depends on it as a single point. Disruption to the Base sequencer, technical failures, or company-level events at Coinbase may, in the short term, affect platform operation, Tokenized Interest transfers, or secondary-market matching. We have not yet established cross-chain redundancy; any future expansion to other chains will be announced separately. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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