Risk warning
To help you understand the risks involved in investing in stocks, please read the following risk summary.
Risk of Capital Loss
Most startups fail or do not grow as expected, meaning investing in such companies carries significant risk. You may lose all or part of your investment, and you should only invest an amount you are prepared to lose. If a company you invest in goes bankrupt, neither the company nor Blast will reimburse you.
Lack of Liquidity
Liquidity refers to how easily you can sell your shares after purchasing them. Shares of companies launched through Blast Club are not easily sellable, and are unlikely to be listed on secondary markets. Even successful companies rarely list their shares in such markets.
Scarcity of Dividends
Dividends are payments made by a company to its shareholders from its profits. Most companies raising funds on Blast are startups or young businesses, which rarely pay dividends. This means you're unlikely to see returns before selling your shares, as profits are typically reinvested for growth.
Dilution
Any equity investment through Blast may be subject to dilution. This occurs when a company issues more shares, reducing an existing shareholder's proportional stake in the company, which impacts voting rights, dividends, and value.
The Need for Investment Diversification
To limit risks and improve potential returns, we recommend diversifying your investments. This means spreading your money across different investment types with varying risks. Investors should allocate only part of their available capital via Blast and balance it with safer, more liquid investments.