Legal

    Risk Disclosures

    All investments involve risk. Participation in digital real estate securities through the Node platform is intended only for sophisticated investors who can afford the loss of their entire investment.

    Transparency is the foundation of institutional trust. Please review these disclosures carefully.

    Market and Economic Factors

    Real estate investments are subject to various risks, many of which are beyond the control of Node or the asset developer.

    Loss of Capital: There is no guarantee that any investment will achieve its objectives. You may lose all or part of your principal.
    Market Volatility: Property values are influenced by local and global economic conditions, interest rates, and inflation.
    Illiquidity: Real estate securities are generally illiquid. Unlike public stocks, there is currently no active secondary market for most digital real estate interests.

    Infrastructure and Blockchain Considerations

    Node utilizes a compliance-native infrastructure stack to manage ownership. This introduces specific technical risks:

    Protocol Risk: The platform relies on blockchain-based smart contracts for compliance and distribution. While audited, software is subject to potential bugs or vulnerabilities.
    Cybersecurity: Despite institutional-grade security, digital platforms are targets for unauthorized access, hacking, and data breaches.
    Access Loss: Loss of access to your verified digital identity or platform credentials may result in delays in accessing your ownership records or distributions.

    SPV-Based Ownership Disclosures

    Node structures assets within Special Purpose Vehicles (SPVs). It is important to distinguish between the physical asset and the digital interest:

    No Direct Deed Ownership: Investors hold membership interests in a legal entity (the SPV), not a direct deed to the physical property.
    Asset Isolation: While SPVs isolate risk, they also mean that your investment is solely dependent on the performance of that specific asset.
    Regulatory Change: The regulatory environment for digital securities is evolving. Changes in SEC or international laws could impact the structure or transferability of your interests.

    Dependence on Asset Performance

    Node provides the infrastructure, but the performance of the investment relies on third parties:

    Developer/Sponsor Risk: The success of a project depends on the developer's ability to execute construction, leasing, and management.
    Property Management: Asset performance is linked to the property manager's ability to maintain occupancy and control operating expenses.
    Distribution Fluctuations: Automated distributions are not guaranteed. They depend entirely on the net cash flow generated by the physical asset after expenses and debt service.

    Eligibility and Verification

    Node enforces strict compliance standards.

    Accreditation: Most offerings are limited to Accredited Investors under Regulation D. Failure to maintain eligibility may impact your ability to participate in future rounds or transfer existing interests.
    Transfer Restrictions: Digital real estate securities often come with holding periods (e.g., one year under Rule 144) and may only be sold to other verified, eligible participants.

    Consult Independent Advisors

    Node Proptech Inc., a Delaware corporation headquartered in Oklahoma City, is a technology provider and does not provide investment, legal, or tax advice. Contact us at hello@nodeproptech.com for any questions.