> For the complete documentation index, see [llms.txt](https://fantium-1.gitbook.io/fantium-faq/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fantium-1.gitbook.io/fantium-faq/fantium-explained/associated-risks.md).

# Associated risks

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### What are the risks when investing in athletes?

As it is the case with any volatile asset, investing in athlete tokens does entail a number of risks. Such risks include, but are not limited to:&#x20;

* **Underperformance of the underlying assets:** Athletes performance can be lower than expected. This could be the case for a multitude of reasons such as injuries. In these cases the FANs stand the risk of not receiving any payouts and losing their initial investment.&#x20;
* **Highly speculative investment risk:** As outlined, athlete investments are blockchain based, meaning investors are exposed to crypto-assets. Such assets are highly speculative and present the risk of total loss of the invested capital. Moreover, the fact that there exists a certain opacity in the crypto-asset market, as well as the fact that regulation to date is very limited, means that there exist certain risks of manipulation with insider trading.&#x20;
* **Volatility risk:** Crypto-assets are subject to large prize fluctuations in both directions. The amplitude of such fluctuations is difficult to predict.&#x20;
* **Liquidity risk:** At any moment in time, there is the risk that a token-holder cannot sell or buy certain crypto-assets due to a limitation in liquidity. Indeed, some assets may not be available during a shorter or longer period. Similarly, there is no guarantee that a market for a crypto-asset be maintained at all times. It is even possible that certain crypto assets can no longer be sold or can only be sold at a significant discount.&#x20;
* **Risks related to the private keys and cyber security:** Theft, loss or hacking of private keys means the permanent loss of crypto-assets. Therefore, the NFT holder is well advised to keep their private keys in a safe location.&#x20;
* **Regulatory risks:** Any future regulation, whether Swiss or foreign, in the crypto-asset market can lead to a limitation of the possibility to hold and/or exchange crypto-assets which can have a significant impact on the prize and liquidity of crypto-assets. The extent and type of the future changes in the regulatory environment as well as the impact of additional regulations are unknown and difficult to predict.