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Risk disclosures

Read these before buying any asset through Equivance. They are not legal, tax, or investment advice.

Tokenized equities are not shares

A tokenized equity tracks the price of a stock or fund, but it is a separate instrument. Depending on the issuer it may be a debt instrument, a tracker certificate, a structured note, a certificate on an SPV, or a claim with no legal rights at all. Holding one does not make you a shareholder of the underlying company unless the issuer explicitly says so.

Rights differ by issuer

Backing, redemption, dividend treatment, voting, and insolvency protection vary between issuers, and two tokens for the same stock can carry very different rights. Equivance summarises each issuer’s own statements and marks anything it could not verify as “Not confirmed”. Do not treat a missing statement as a right.

  • Backpack Securities: Self-custodied tokenized claims on an SPV holding the underlying assets, anchored 1:1 to the underlying through a mint and redemption mechanism.
  • xStocks: Each xStock is a bearer debt instrument classified as a tracker certificate — a structured financial instrument, not direct equity ownership.
  • Robinhood Stock Tokens: Tokenised debt securities issued by Robinhood Assets (Jersey) Limited. They provide economic exposure to underlying securities but no legal or beneficial rights in, or against the issuer of, those securities.
  • bStocks: Certificates representing certain financial instruments (ADGM FSMR). They represent an interest in underlying securities held by the issuer and are not direct ownership of the underlying shares.
  • Ondo Global Markets: A structured note: a debt instrument issued by Ondo Global Markets (BVI) Limited, a bankruptcy-remote SPV in the British Virgin Islands. Tokenholder rights are governed by Swiss law under the issuer’s Sales Terms.
  • PreStocks: Tokens that track the price of individual private companies, backed by holding entities that are directly or indirectly invested in the underlying company. The price represents the gross price per share of the referenced company.

Price and liquidity risk

  • On-chain prices can differ from the underlying security’s exchange price, particularly when traditional markets are closed.
  • Pools with little liquidity can move sharply on modest orders. You may receive less than quoted, down to the minimum received shown before you sign.
  • Liquidity can disappear quickly, making it hard to sell at a fair price.
  • Pre-IPO tokens track private companies whose valuations are infrequent and opaque, and some expire worthless if not converted after an IPO.
  • Past price movements shown in charts do not predict future movements.

Issuer, custody, and counterparty risk

You depend on the issuer, its custodians, brokers, and security agents. Insolvency, custody failure, fraud, trading halts, or regulatory action against any of them can cause partial or total loss. Issuers can pause trading, freeze tokens, or restrict addresses at the contract level.

Technology risk

  • Smart contracts, bridges, and decentralised exchanges can contain flaws or be exploited.
  • Network congestion can delay or fail transactions; fees can change between quote and execution.
  • Swap routes come from third-party solvers (via CrossFund Protocol) that Equivance does not control.

Eligibility and jurisdiction

Every listed issuer restricts who may hold its tokens. Statements below are from issuer documentation:

  • Backpack Securities: Not offered in certain jurisdictions, including the United States, the United Kingdom, the United Arab Emirates, and Japan, and not offered on Backpack EU.
  • xStocks: Not marketed, offered, or solicited in the United States, to U.S. Persons, or in any other prohibited jurisdiction.
  • Robinhood Stock Tokens: Not registered under U.S. securities laws; may not be offered or sold in the United States or to U.S. persons.
  • Robinhood Stock Tokens: Prohibited in listed jurisdictions (including Cuba, Belarus, Iran, North Korea, Russia, Syria, Ukraine, South Sudan, Sudan, Myanmar, and Venezuela) and restricted in others, including Canada, the United Kingdom, Switzerland, and the UAE.
  • bStocks: Must not be made available to Restricted Persons, including U.S. Persons (Regulation S).
  • bStocks: The issuer may restrict wallet addresses at the smart-contract level for legal or sanctions reasons.
  • bStocks: A full list of eligible jurisdictions was not found in the published documentation.
  • Ondo Global Markets: Offered only to persons outside the United States who are not U.S. persons under Regulation S.
  • Ondo Global Markets: Prohibited in a published list of jurisdictions (including the United States and Canada); restricted to professional or qualified investors in others, including the EEA, Switzerland, and the United Kingdom.
  • PreStocks: Unavailable in the United States, to U.S. persons, in countries subject to U.S., UK, or EU sanctions, and where prohibited by law.
  • PreStocks: The operator states it is not a broker-dealer, investment adviser, exchange, custodian, or similar regulated entity. Its legal entity name was not found in public documentation.

You are responsible for complying with the laws of your jurisdiction. Before every purchase, Equivance asks you to confirm your eligibility.

Self-custody

Equivance never holds your funds or keys. Transactions you sign are final and cannot be reversed by Equivance. Keep your seed phrase private — Equivance will never ask for it.

Data accuracy

Market data comes from third-party providers and may be delayed, incomplete, or wrong. Equivance labels sources and timestamps and shows missing data as unavailable, but cannot guarantee accuracy. See Data & methodology.