Disclaimer & Risk Factors
Grail Index ($GRAIL) is a blockchain-based protocol that provides fractionalized exposure to real-world Pokémon collectibles. It does not constitute an offer, solicitation, or recommendation to buy or sell any security, financial instrument, or investment product. Participation in the $GRAIL ecosystem should be viewed as a high-risk, experimental activity in decentralized finance (DeFi) and real-world asset tokenization.
By interacting with the $GRAIL protocol or acquiring $GRAIL tokens, participants acknowledge that:
$GRAIL does not represent legal ownership or claim over any specific physical Pokémon card or asset.
The Vault operates as an index-backed representation, where token value correlates to the overall Vault performance, not individual redemption rights.
All on-chain activities are governed exclusively by smart contracts deployed on Ethereum.
Grail Index operates without centralized custody; all acquisitions, burns, and fee distributions are performed via code and partner integrations.
The protocol and its contributors do not guarantee profit, price stability, or the long-term success of the token or Vault. $GRAIL should be treated as an experimental, utility-driven digital asset and not as a financial security.
Risk Factors
1. Market Volatility The value of $GRAIL and underlying assets (Pokémon slabs) can fluctuate significantly. Both the crypto market and collectibles market are subject to high volatility, limited liquidity, and speculative cycles.
2. Smart Contract Risk While all smart contracts undergo auditing, no system is entirely free of vulnerabilities. Bugs, exploits, or unforeseen logic errors could result in partial or total loss of funds.
3. Custodial & Verification Risk Although Vault acquisitions are sourced from verified partners, third-party custodians, grading companies, or marketplaces may fail to perform as expected. Authenticity verification and partner reliability are critical dependencies.
4. Regulatory Uncertainty Tokenized assets and decentralized vault systems exist in evolving legal frameworks. Changes in regulation or enforcement could affect access, exchange listings, or operations.
5. Demand-Based Fee (DBF) Mechanism Volatility The adaptive nature of DBF introduces dynamic conditions for traders and investors. Fee levels may fluctuate significantly during periods of high or low market activity, impacting short-term returns and trading costs.
6. Liquidity & Exit Risk $GRAIL tokens may experience low liquidity or high slippage on exchanges. Holders may not be able to sell tokens immediately or at desired prices.
7. Real-World Asset (RWA) Market Dependency The Pokémon card market is niche and sensitive to collector sentiment, media trends, and grading standards. Broader shifts in collector demand could affect long-term Vault valuation.
8. Operational Risk Failure of partners, third-party infrastructure, or off-chain data providers could disrupt operations or create temporary information gaps about Vault holdings.
9. Legal Jurisdictions Users are responsible for ensuring participation complies with their local laws. Grail Index does not engage in restricted jurisdictions or OFAC-sanctioned regions.
Compliance
Participation in $GRAIL involves exposure to both on-chain and real-world market dynamics. By engaging with the protocol, users accept all inherent risks associated with decentralized systems, fluctuating markets, and tokenized assets.
Grail Index is committed to transparency, audits, and responsible innovation, but cannot eliminate market risk or guarantee performance. Always conduct personal due diligence before participation.
Last updated