Holding a PARK Token is not an Investment in securities (ie shares or debt of a company). PARK Token is the payment mean for participating as a driver or parking owner in the PARKRES Reservation Platform.
The overall demand and supply of PARK Tokens in the market will determine the underlying value against FIAT or other Currencies. Nevertheless this will not influence the actual price in FIAT that someone will pay for the parking.
Some of you may buy PARK Tokens with a view of investing towards a future appreciation of the PARK Token exchange values. Although this is not the primary scope of the PARK Token you are free to do it, if you wish.
To build wealth over time, investors need to accept certain levels of risk. The main general risks associated with investing are as follows:
- Investments risks
Market value of investments may go down as well as up, even if the quality of your investment remains the same. Past performance is not an indicator of future performance.
- Political risks
Factors such as monetary restrictions, war conflicts, coups and racial and national tensions create political instability in countries. Political instability can significantly influence a project’s ability to generate earnings.
Government economic policies of any country may lead to challenging macroeconomic environment for projects.
- Legal risk
Many countries don’t have the legal systems necessary for the proper and efficient regulation of digital assets. This may include the non-existence or limited functioning of Market Regulators, incomplete legislation and regulations pertaining to the crypto currency capital markets and no or limited investor compensation schemes. There is therefore a high degree of legal uncertainty as to the nature and extent of investor’s rights and the ability to enforce those rights.
- Taxation
Tax law and practice is not clearly established for crypto currency market and there is significant uncertainty as to the position of investors (local or international) in many Countries. It is possible therefore that a current interpretation of Tax law or practice may change or, indeed, that a specific Tax law may be changed with retrospective effect. An investor could become subject to taxation that is not anticipated when Investments are made and this could impact the overall investment performance.
- Liquidity risk
Market liquidity risk – is inability of financial instrument to be converted into cash in the shortest possible time without significant change in value or increasing bid/ask spread. This type of risk is interdependent to holding concentration risk.