Risk Disclosure

The value of any investment can fall as well as rise. Past performance is not a reliable indicator of future results. You may lose some or all of the capital you invest. kokabu does not guarantee returns, distributions, or capital preservation under any circumstance.

Projected yields, internal rates of return, and any forward-looking figures shown on the platform are estimates based on current assumptions. Actual returns may differ materially.

Tokens issued on kokabu represent fractional ownership in real estate held via Special Purpose Vehicles (SPVs). Real estate is an inherently illiquid asset class. There is no guarantee that you will be able to sell your tokens before the underlying property is sold or refinanced.

At launch, secondary transfers are handled via a manual exit-request process. We match willing buyers with willing sellers. There is no guarantee that a counterparty will be available at the price or time you wish to exit. You should be prepared to hold your investment for the full stated term of the deal.

Each property on the platform carries risks specific to its market, condition, tenancy, and management. These include but are not limited to vacancy, tenant default, unexpected maintenance costs, fire, flood, structural defects, environmental contamination, changes in zoning, and changes in local market conditions.

Property valuations are estimates provided by independent valuers and may not reflect the price achievable on sale. Valuations are updated periodically and may move down as well as up.

kokabu operates under the framework of Section 275 of the Singapore Securities and Futures Act (SFA), with an application to the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox in progress. We are not currently licensed as a Capital Markets Services holder.

Regulatory frameworks for tokenized securities, digital assets, and cross-border investment continue to evolve in Singapore, Japan, and the other jurisdictions in which our investors reside. Changes in law or regulation may affect the legality, taxation, or operability of the platform and your investment.

kokabu is not available to United States persons. It is your responsibility to ensure you are eligible to use the platform under the laws of your jurisdiction.

Tokens are issued and transferred using smart contracts deployed on the Polygon blockchain, based on the ERC-3643 (T-REX) open-source standard. Smart contracts may contain bugs, vulnerabilities, or design flaws that could result in loss of tokens, incorrect distribution of funds, or unauthorized transfers. We mitigate this through audits and a bug bounty program but cannot eliminate the risk entirely.

Blockchain networks may experience downtime, congestion, or forks. Such events could temporarily prevent the execution of transactions including investments, transfers, and distributions.

Custody of your wallet and tokens is provided by a third-party custodian (Privy) with institutional-grade key management. Compromise of the custodian or the platform could result in loss of access to your tokens. We maintain insurance, security controls, and incident response procedures to mitigate this risk.

kokabu depends on a number of third-party service providers including Clerk (authentication), Privy (custody), Didit (identity verification), Stripe (payments), Resend (communications), and chain infrastructure providers. Failure or disruption of any of these providers may affect your ability to use the platform.

If kokabu itself were to cease operations, your token ownership is recorded on-chain and legally backed by the underlying SPV. You would retain ownership of your fraction of the asset and the corresponding share in the SPV. Orderly wind-down procedures and investor communications would be coordinated where possible.

Distributions you receive are paid gross at v1. You are responsible for assessing, declaring, and paying any tax due in your jurisdiction of residence and any other applicable jurisdiction. An annual tax statement summarizing distributions received is provided through the platform.

Tax treatment of tokenized real estate is jurisdiction-specific and may change. We recommend consulting a qualified tax adviser before investing.

kokabu earns fees from sponsors (asset owners) including setup fees, success fees, and annual management fees. These create incentives to publish deals on the platform. We mitigate this through independent valuation requirements, transparent fee disclosure, and our obligation to act in good faith toward investors.

Investment opportunities on kokabu are available only to accredited investors as defined under MAS rules. You confirm at sign-up and at each investment that you meet the applicable accreditation thresholds. kokabu does not provide investment advice and does not assess whether any investment is suitable for your personal circumstances.

You should consider your investment objectives, risk tolerance, time horizon, and overall portfolio before investing. Do not invest capital you cannot afford to lose or capital you may need in the short term.

Questions about this disclosure can be sent to legal@kokabu.co.