AVALT involves physical luxury watches, lending arrangements, custody processes and, where enabled, blockchain-based settlement. These activities involve risks that may result in loss of money, loss of access to assets or delays in recovering assets.

A borrower remains responsible for the obligations established by the applicable facility agreement. Failure to satisfy those obligations may result in enforcement, disposal or other contractual remedies. A borrower may also remain responsible for amounts outstanding after collateral realization where the applicable agreement provides for such an obligation.

A lender may be exposed to borrower default and to the practical risks associated with realizing physical collateral. Recovery of principal or other amounts is not guaranteed merely because a watch has been accepted as collateral.

Luxury-watch valuations are estimates based on available information and comparable market evidence. Actual sale prices may differ from an assessed value. Market conditions, watch condition, reference, provenance, buyer demand and timing may affect the value and realization of physical collateral.

A luxury watch may not be sold immediately at an expected price. Market depth, buyer demand, condition, reference, provenance and timing can affect the disposal process. A reserve price or other disposal mechanism does not guarantee that a buyer will be available at that price.

Physical assets may be exposed to risks including authenticity disputes, damage, loss, theft, substitution, seal compromise or custody-provider failure. AVALT may use authentication, physical controls, sealing, imaging, instrumentation, audit records and insurance arrangements to manage these risks, but no control system eliminates risk entirely.

Where blockchain settlement is enabled, digital assets may be affected by price volatility, network congestion, smart-contract defects, transaction errors, compromised credentials, lost access credentials and other technical or market risks. Blockchain transactions may be irreversible, and sending assets to an incorrect address or unsupported network may result in permanent loss.

The platform depends on software, APIs, databases, custody instrumentation, communications infrastructure and potentially blockchain networks. Outages, bugs, attacks, data corruption or third-party failures may affect availability or transaction processing.

The legal and regulatory treatment of digital assets, physical collateral, lending, custody, payments, taxation and cross-border activity may vary between jurisdictions and may change over time. Public product materials do not by themselves establish that AVALT holds a particular financial, lending, custody or other regulatory licence.

AVALT does not guarantee investment returns, lending returns, liquidity, appreciation in watch prices, repayment, successful disposal or uninterrupted availability of the platform.

You should obtain independent legal, tax, financial and other professional advice where appropriate before entering into a transaction involving AVALT or any related facility.