Risk disclosure

1. Summary in plain language

• You can lose everything you put into a virtual asset.
• The MANTRA coin, then called OM, once fell 92% in about one hour.
• Staked coins cannot be sold for 8 days after you ask for them back.
• A token that stands for a building or a fund is only as sound as its issuer and its legal structure.
• Software fails: MANTRA Chain was exploited on 20 August 2026 and stopped for more than 30 hours.

2. Statements required by regulators

Each statement belongs to one audience. They are shown apart, word for word, and are not combined.

Dubai (VARA)

VARA's Marketing Regulations require a prominent statement that "Virtual Assets may lose their value in full or in part, and are subject to extreme volatility", and that an investor "can lose all the money or other value they invest, and does not benefit from any form of financial protection". The Regulations cover all marketing of virtual assets in or targeting the UAE, whoever publishes it. MANTRA Chain Association is not licensed by VARA. A separate company, Mantra Finance FZE, holds VARA VASP Licence VL/25/02/001.

European Union (MiCA)

MANTRA publishes a white paper for the coin under MiCA Article 6. The offeror's legal name is not confirmed. No MANTRA entity claims authorisation as a crypto-asset service provider.

3. Risks of the MANTRA coin

Price volatility

MANTRA's own statement of events says that on 13 April 2025 the coin fell 92% in about one hour. It attributes the fall to forced liquidations on centralised exchanges and says the team sold nothing during that period. That is MANTRA's account, not an independent finding. A fall of that size can happen again.

Inflation and dilution

New coins are issued to pay staking rewards. Total supply grew from 8.09 billion MANTRA on 23 August 2026 to 8.22 billion on 4 October 2026, under what the weekly report calls a 16.0% inflation regime, against a maximum of 10.00 billion. A holder who does not stake owns a shrinking share.

Exchange and liquidity risk

The coin trades on exchanges that MANTRA does not control. An exchange can halt trading or withdrawals, delist the coin or fail. In a thin market a large order moves the price.

4. Risks of staking

Unbonding period

Staked MANTRA takes 8 days to unbond, as reported on 4 October 2026. During those days the coins cannot be sold or moved, whatever the price does.

Slashing

On a proof-of-stake network, a validator that signs twice or stays offline can be penalised, and the coins delegated to it share the loss. The penalties that apply on MANTRA Chain are not published on the main site.

Variable rewards

Staking rewards are variable and not guaranteed. They are paid in newly issued MANTRA, so their value in money falls when the price falls. The rate, its method and its date appear in one place: MANTRA token supply and staking.

5. Risks of tokenized assets

A token that represents a property, a fund unit or a loan is offered by its issuer, not by MANTRA Chain Association. In Dubai, the issuer of an asset-referenced virtual asset publishes its own ranked risk disclosure statement under the Virtual Asset Issuance Rulebook. Read that statement before this page.

Legal title and issuer risk

The token is a record. What you own depends on the structure behind it: the asset itself, a share of a company that holds it, or a claim on the issuer. If the issuer or that company fails, the token may not deliver the asset.

Custody

Someone holds the asset, its title documents or the reserves. If that custodian fails, or its records differ from the chain, recovery can be slow and partial.

Liquidity

There may be no buyer when you want to sell. Transfer rules can limit who may buy, and an offering can be paused: MANTRA Finance paused subscriptions to the Green Velocity 1 Token by Pyse in March 2026.

No investor protection scheme

Where it is true of an offering, the issuer states that the token "is not covered by any investor protection or deposit guarantee schemes". Assume that no scheme applies unless the issuer's documents name one. The page on real estate tokenization shows who does what in a property offering.

6. Technology and network risk

MANTRA Chain was exploited on 20 August 2026 through an unsigned-integer underflow in the balance-accounting layer of cosmos/evm, an upstream dependency. 720,923,967.99 MANTRA, about US$3.6 million at the time, was moved out of the burn address and a legacy multisig. The chain was halted for 30 hours 13 minutes, and nothing could be sent while it was down. As of 28 August 2026 none of the coins had been recovered. Contracts, bridges and wallets carry the same kind of risk, and an audit does not remove it. The timeline is in the security and incident report.

7. Regulatory risk

Rules for virtual assets differ by country and they change. A product that is lawful in one place may be restricted in another, and a new rule can affect what a token is worth or who may hold it. One MANTRA company holds a licence: Mantra Finance FZE is licensed by VARA under VASP Licence VL/25/02/001, for the activities on its register entry only. The licence does not cover MANTRA Chain Association, the blockchain or the coin. See licences and regulatory disclosures.

For information only. Not investment advice. Use of this site is subject to the terms of use, and the complaints procedure says how to raise a problem.