PropBlock AI
  • PropBlock AI
    • What is PropBlock AI
    • Problem & Solution
    • Key Features
    • Vision and Mission
  • RWA Protocol Overview
    • AI Agent Operational Architecture
    • Technical Architecture
    • Tokenization Process
    • Risk Management & Trading Framework
    • Tokenomics
  • FAQ
  • Risk Disclosure
  • Disclaimer
  • Brand Kit
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On this page
  • Protocol Risks
  • Operational Risks
  • Market Risks
  • No Regulatory Safeguards
  • User Responsibilities
  • Risk Mitigation Tools

Risk Disclosure

PropBlock AI operates at the intersection of blockchain technology, AI, and real-world assets. While we implement robust safeguards, users must acknowledge these inherent risks:

Protocol Risks

  1. Smart Contract Exposure

    • PropBlock’s smart contracts are audited but remain experimental. Vulnerabilities could lead to fund loss.

    • 95% of protocol fees fund a $50M Insurance Vault (Chainlink-proofed reserves).

  2. AI Model Limitations

    • Predictive valuations may fail to account for black swan events (e.g., pandemics, regulatory shocks).

    • Models retrain weekly using federated learning across 10,000+ properties.

  3. Liquidity Risks

    • Secondary markets depend on participant activity. Illiquid assets may trade below intrinsic value.

    • Base Chain’s DEX Liquidity: Minimum $250k per property pool backed by Uniswap v3.

Operational Risks

Risk
Mitigation

Service interruptions

Geographically distributed node operators

Regulatory changes

Legal wrappers for 15+ jurisdictions (MiCA, SEC Reg D)

Data breaches

Zero-knowledge KYC (zkPass integration)

Market Risks

  • Real Estate Volatility: AI rebalancing triggers auto-sell if property values drop >15% in 7 days.

  • Crypto Correlation: 30-day trailing beta of PROP vs. ETH: 0.62 (as of Q2 2024).

No Regulatory Safeguards

PropBlock AI is not a registered securities platform, broker, or financial advisor. Key implications:

  • No Investor Protection: Funds aren’t FDIC/SIPC insured.

  • Unsupervised AI: Models aren’t audited by financial authorities.

  • Jurisdictional Bans: Restricted in China, Russia, and sanctioned territories.

User Responsibilities

By using PropBlock AI, you agree to:

  1. Self-Custody Risks:

    • You alone control wallet keys. PropBlock cannot recover lost credentials.

  2. Tax Compliance:

    • Token trades/rentals may trigger capital gains liabilities.

  3. Due Diligence:

    • Verify property SPV details via on-chain metadata (IPFS audits).

Risk Mitigation Tools

  1. Portfolio Stress Tester: Simulate 2008-level crashes or 20% rate hikes via AI dashboard.

  2. Circuit Breakers:

    Trading halts if AI detects >25% abnormal volume spikes.

  3. Transparency Portal: Live audit of property cash flows, insurance reserves, and DAO votes.

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Last updated 23 days ago