Risks
Risks to consider when engaging in web3 projects
Saltwater Games strives to mitigate all risks for both the business operations of Saltwater Games and the community members holding Saltwater Games' digital products. Below are the Systemic and Idiosyncratic risks that all web3 adopters should be mindful of when engaging with any project that uses tokens.
As always do your own research and be sure you are clear on how these risks may impact you.
Systematic
Economic Risk: Macro-economic influences impacting Celeros digital assets
Market Design risks include competitors, recognition and execution.
Mechanism Design risks include market manipulation and financial crime
Token Design risks include inflation, minting/burning and velocity of capital
Liquidity Risk: Risk of ability to cash out of Celeros native assets
Market Design risks include those associated with the marketplaces and exchanges
Token Design risks include scarcity and third-party exchange interoperability and adoption
Financial Risk: Risk of losing money through trading digital assets and engaging in business activities with Celeros.
Market Design risks include usability/utility and treasury liquidity
Mechanism Design risks include taxation across regions and jurisdictions
Token Design risks include token flow and leverage on third-party platforms
Idiosyncratic
Protocol Risk: Risk arising from holding tokens associated with Celeros
Market Design risks include asset classification and foreign asset regulations
Mechanism Design risks include the quality of the smart contracts
Token Design risks include valuation, price and scarcity
Governance Risk: Risk from uncertainties that arise from the parameters that Celeros citizens can change via governance mechanisms
Market Design risks include functional coverage of potential outcomes and cascading impacts
Mechanism Design risks include voting function failures, concentration and enforcement
Token Design risks include misallocation of governance control
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