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TULPEA PROTOCOL

Risk Disclosure Statement

Effective March 10th, 2026

This Risk Disclosure Statement ("Disclosure") describes certain material risks associated with participation in transactions conducted through the Tulpea Protocol.

By interacting with the Protocol, you acknowledge that you have read, understood, and accepted the risks described below.

This Disclosure does not purport to identify all possible risks. Participation may involve additional risks not expressly described herein.

1.

General Risk Warning

Participation in blockchain-based financial transactions, including lending, borrowing, or structured financing referencing real-world assets, is highly speculative and involves substantial risk of loss.

You may lose all funds committed.

There is no guarantee of principal preservation or return.

2.

Smart Contract Risk

The Protocol operates through smart contracts deployed on public blockchains.

Smart contracts may contain:

  • Coding errors
  • Vulnerabilities
  • Exploitable logic flaws
  • Undiscovered security issues

Even audited smart contracts may fail.

Exploits, hacks, or technical failures may result in partial or total loss of digital assets.

Tulpea Protocol does not guarantee the security of smart contracts.

3.

Blockchain and Network Risk

Transactions depend on third-party blockchain networks.

Risks include:

  • Network congestion
  • Validator failure
  • Chain reorganization
  • Forks
  • Censorship
  • Permanent chain disruption

The underlying blockchain may fail, cease operation, or become economically compromised.

4.

Digital Asset Volatility Risk

Digital assets are highly volatile.

Market prices may fluctuate rapidly and unpredictably.

Stablecoins may lose their peg.

Liquidity may disappear suddenly.

Adverse market movements may result in:

  • Mark-to-market losses
  • Liquidation
  • Impaired exit
5.

Counterparty Risk

Certain transactions facilitated through the Protocol may involve offchain legal entities, including but not limited to:

  • Special purpose vehicles
  • Real estate holding companies
  • Borrowing entities

Such entities may:

  • Default on obligations
  • Become insolvent
  • Mismanage assets
  • Breach contractual agreements

Enforcement of offchain obligations may be complex, delayed, or impossible.

Tulpea Protocol does not guarantee counterparty performance.

6.

Real-World Asset Risk

Transactions referencing real-world assets (RWA) involve additional risks, including:

  • Property damage
  • Construction delay
  • Zoning or licensing issues
  • Title defects
  • Lease termination
  • Tenant default
  • Operational underperformance
  • Insurance disputes
  • Natural disasters
  • Political instability

Real-world assets may be illiquid and difficult to dispose of in distressed conditions.

8.

Jurisdictional and Enforcement Risk

Where transactions involve foreign entities or assets:

  • Legal enforcement may require litigation in foreign courts
  • Judgments may be difficult to enforce
  • Political or legal changes may impair rights

Cross-border disputes may result in significant delay and cost.

9.

Liquidity Risk

Digital asset positions may be illiquid.

There may be:

  • No secondary market
  • Limited buyers
  • Exit restrictions
  • Lock-up periods

You may be unable to exit a position at desired timing or price.

10.

Yield and Performance Risk

Any indicated yield, fixed rate reference, projected return, or illustrative scenario:

  • Is not guaranteed
  • May depend on assumptions
  • May be impacted by borrower performance
  • May be reduced by fees
  • May be suspended in default scenarios

Past performance is not indicative of future results.

11.

Master Lease and Revenue Risk

Where a financing structure references rental guarantees or master lease arrangements:

  • Such guarantees are contractual obligations of specific entities
  • They may be terminated, renegotiated, or breached
  • Counterparties may become insolvent
  • Payment delays may occur

There is no assurance that rental income will be sufficient to service debt obligations.

12.

Force Majeure Risk

Events outside the control of any party may impair performance, including:

  • Natural disasters
  • Pandemics
  • War
  • Civil unrest
  • Government intervention
  • Infrastructure collapse

Such events may materially affect asset value and revenue generation.

13.

Technology Interface Risk

The web interface may experience:

  • Downtime
  • Cyberattack
  • Data corruption
  • Access restriction

Smart contracts may remain accessible independently of the interface.

Users are responsible for interacting directly with blockchain contracts if necessary.

14.

No Recourse Against Protocol Contributors

Tulpea Protocol contributors, developers, and affiliated entities:

  • Do not guarantee outcomes
  • Do not insure user funds
  • Do not assume liability for third-party failure

Users bear sole responsibility for participation decisions.

15.

Tax Risk

Participation may have tax consequences.

Tax treatment may vary by jurisdiction.

Users are solely responsible for determining and complying with tax obligations.

16.

Acknowledgment

By interacting with the Protocol, you acknowledge that:

  • You understand the speculative nature of the transactions
  • You are capable of bearing a total loss
  • You have conducted independent analysis
  • You are not relying on Tulpea Protocol for financial advice
  • You assume full responsibility for your decisions