Risk Management

Risk Management

Effective risk management is a cornerstone of Oases' strategy to ensure the stability and security of our investors' assets. We employ a comprehensive approach to identify, assess, and mitigate potential risks associated with real estate investments and blockchain technology.

Identification of Potential Risks & Mitigation Strategies

Financial Risks:

• Volatility of Property Values: Real estate markets can be unpredictable, and property values may fluctuate due to economic conditions, market demand, and other factors.

• Liquidity Risks: Although our platform enhances liquidity through tokenization, there may still be times when selling tokens quickly could be challenging.

• Currency Exchange Risks: For properties located in different countries, exchange rate fluctuations can impact the value of investments and returns.

Financial Risk Mitigation:

• Diversification: By offering a variety of properties across different geographic locations and market segments, we reduce the impact of localized economic downturns.

• Reserve Fund: Allocating the surplus rental income distributions to a reserve fund ensures that there are funds available to cover maintenance and other unexpected costs.

Operational Risks:

• Property Management Issues: Problems related to property management, such as maintenance delays, tenant disputes, and operational inefficiencies, can affect rental income and property value.

• Technological Risks: Issues related to the blockchain platform, such as smart contract vulnerabilities or cyber-attacks, can pose significant risks.

Operational Risk Mitigation:

• Professional Management: Partnering with experienced property management companies to handle day-to-day operations, maintenance, and tenant relations ensures professional oversight and minimizes operational risks.

• Robust Technology: Utilizing Arweave blockchain technology, known for its security and transparency, to safeguard transactions and ownership records. Regular audits and updates ensure the platform remains secure and efficient.

Bankruptcy Risks:

• Entity Insolvency: The special purpose vehicle (SPV) holding the property could face financial difficulties, impacting the asset's value and the investors' returns.

• Oases Platform Risks: Although unlikely, the insolvency of Oases itself could pose risks to the management and continuity of services provided to investors.

Bankruptcy Risk Mitigation:

• Independent SPV Structure: Establishing an independent SPV for each property, which isolates financial risks and protects the property assets from any financial issues faced by Oases.

• Automated Ownership Documentation: Maintaining an automated, immutable record of ownership on the blockchain ensures that, in the unlikely event of Oases' insolvency, the property can be sold and investors can receive their returns.

Market Risks:

• Economic Downturns: Broader economic conditions, such as recessions or market crashes, can negatively impact property values and rental incomes.

• Regulatory Changes: Changes in real estate regulations, property taxes, or blockchain regulations could affect the operations and profitability of investments.

Market Risk Mitigation:

• Economic Analysis: Conducting thorough economic and market analyses before acquiring properties to select assets with strong potential for appreciation and stable rental income.

• Regulatory Compliance: Staying updated with regulatory changes and ensuring that all properties and transactions comply with local and international laws.

Insurance and Safeguards

To further protect investors, Oases implements comprehensive insurance and safeguard measures:

• Property Insurance: All properties are covered by comprehensive insurance policies that protect against damages, natural disasters, and other unforeseen events.

• Liability Insurance: Property management companies are required to hold liability insurance to cover any legal claims or liabilities arising from property management activities.

• Blockchain Security: Employing state-of-the-art encryption and security protocols to protect the blockchain infrastructure from cyber threats. Regular security audits and updates ensure ongoing protection.

• Legal Safeguards: Ensuring that all legal documentation and contracts are clear, enforceable, and compliant with relevant laws. This includes the administration agreement, which grants Oases the authority to manage the properties effectively.

Oases is committed to maintaining the highest standards of risk management to safeguard our investors' assets. By identifying potential risks, implementing robust mitigation strategies, and ensuring comprehensive insurance and safeguards, we create a secure and resilient investment environment. Our proactive approach to risk management ensures that investors can confidently participate in the Oases platform, knowing their investments are protected.