Understand the risks before investing
Private market investments can be complex, illiquid, and risky. This page highlights common risks and limitations in plain English. It does not replace issuer documentation, fund offering materials, or independent advice.
- You may lose some or all of your capital.
- Private assets are often illiquid and hard to value.
- Past performance is not a guarantee of future results.
- Secondary liquidity is not guaranteed, even if a secondary feature exists.
- Only invest if you understand the risks and have reviewed the relevant materials.
Nothing on this site is investment advice. Any materials are provided for information only and may not be accurate, complete, or up to date.
Summary
Private markets involve risks that are different from public markets: limited liquidity, information asymmetry, complex legal structures, and higher operational friction. You should carefully review issuer materials, offering documents, and any relevant contracts before making an investment decision.
No advice / no offer
- Nothing on this website constitutes investment, legal, tax, or accounting advice.
- Nothing on this website is an offer to sell, or solicitation to buy, any security or financial instrument.
- Any investment decision should be made based on official issuer documentation and independent professional advice.
- Information may be incomplete, contain errors, or become outdated.
Suitability
Investments accessible through Monolith are intended for eligible/qualified participants as defined by applicable rules and/or the issuer’s eligibility criteria. You should consider your financial situation, experience, and risk tolerance.
This is a risk highlight, not an exhaustive list. Read the official documents for the specific opportunity.
Illiquidity & lockups
Private assets are often illiquid. You may not be able to sell your position when you want, at all, or at a price you consider fair.
- Lock-up periods, transfer restrictions, and eligibility rules can limit exit options.
- Secondary liquidity may be episodic (e.g., during defined windows) and depends on demand and eligibility.
- Even if interest exists, settlement or approvals may delay completion.
Loss of capital
You may lose some or all of your investment. Private market performance can be volatile, and downside can occur due to company performance, macro conditions, or structural factors.
This is a risk highlight, not an exhaustive list. Read the official documents for the specific opportunity.
Valuation & pricing
Valuation of private assets is inherently uncertain. Prices may rely on models, estimates, and limited comparable data. Reported valuations may not reflect realizable sale prices.
- Valuations can be stale due to infrequent reporting.
- Different methodologies may produce different outcomes.
- Fees and costs can materially affect net returns.
Secondary liquidity risk
If secondary trading features exist, they do not guarantee liquidity. Matches depend on counterparty availability, eligibility, pricing agreement, and successful completion of required checks.
“Liquidity windows” may help structure orderly transfers, but outcomes depend on market conditions and compliance constraints.
Issuer / asset risks
Underlying issuers and assets may face operational, financial, governance, and market risks. Terms may include complex waterfalls, covenants, and restrictions.
Operational & platform risk
Monolith provides software and operational workflows. Despite controls, risks include outages, cyber incidents, third-party failures, and human error.
Legal & tax
Investments may have legal and tax implications that vary by jurisdiction and individual circumstances. You should seek independent professional advice.
- Tax treatment can change and may differ for individuals and entities.
- Cross-border rules may apply, including reporting obligations.
- Regulatory and legal outcomes can impact liquidity and valuation.
Conflicts of interest
Conflicts can arise where multiple parties have different incentives (issuers, investors, service providers). We provide a separate conflicts policy for transparency.
Read Conflict of InterestQuestions
Contact
Ask a question
If you’re unsure how a specific risk applies to a particular opportunity, contact the team.
Email contact@monolith.xyzAlways review the official issuer documents and disclosures before making an investment decision. If anything is unclear, ask questions before committing capital.