Risk Disclosure

REALDEED PROPTECH (DIFC) LTD

RISK DISCLOSURE STATEMENT FOR PROPERTY OWNERS & CLIENTS

Last Updated: 2025

This Risk Disclosure Statement (“Disclosure”) is provided by RealDeed PropTech (DIFC) Ltd (“RealDeed”, “we”, “us”, or “our”) to all property owners, clients, and stakeholders who choose to digitize or tokenize property documentation using our Distributed Ledger Technology (DLT) platform.

RealDeed operates under a DIFC Innovation Licence and provides Asset tokenization, and blockchain infrastructure services. RealDeed does not provide financial services or investment activities.

Tokenization through RealDeed involves converting property title and metadata into a digital utility token. Before proceeding, clients must carefully read, understand, and acknowledge the following risks.

1. No Legal Transfer of Ownership

Tokenization through RealDeed:

• Does NOT transfer legal ownership of the property

• Does NOT replace title deeds issued by Land Departments

• Does NOT create a financial security or beneficial interest in Possession of an Asset

All legal property transactions must still occur through relevant land authorities (e.g., DLD, RERA, Land Registry UK, Sub-Registrar Offices in India).

2. Tokens Are NOT Financial Instruments

Utility tokens created by RealDeed:

• Do not carry financial value or Ownership in Property

• Do not create investment rights

• Are not regulated by DFSA, VARA, or any financial regulator

3. Accuracy of Submitted Documents

RealDeed relies on documents submitted by the property owner and data fetched from Land Department Record and AI.

Risks include:

• Errors, inaccuracies, or outdated information in submitted paperwork

• Fraudulent or forged documents supplied by clients

• Incorrect property boundaries or encumbrance status

  
  

RealDeed does not guarantee the legal authenticity of documents beyond verification supported by external sources.

4. Jurisdictional and Regulatory Risks

Real estate laws vary across countries.

Risks include:

• Regulatory changes in UAE, India, or the UK affecting tokenization rules

• Delays or inability to verify title in certain jurisdictions

• Variations in land department systems or legal interpretation

• Restrictions in countries where digital property records are not recognised

Tokenization does not override local property law.

5. Technology & DLT Risks

Although RealDeed uses industry grade blockchain infrastructures, technology-related risks may occur:

• Smart contract bugs or vulnerabilities

• Server downtime or system outages

• Cybersecurity threats, hacking, or unauthorized access

• Blockchain congestion or delays

• Loss of access to wallets or keys used for utility tokens

RealDeed employs robust security, but no system is fully immune to operational risks.

6. No Financial Returns or Market Value

Clients must understand:

• Tokenization does not give investment opportunities

• Token value does not increase with market conditions

• RealDeed tokens cannot be used to trade real estate

Any misuse for investment purposes is strictly prohibited.

7. Dependence on Third-Party Platforms

Tokenization workflows may interact with:

• Land departments

• Cloud hosting services

• Blockchain networks

• Verification APIs

• External KYC/KYB systems

RealDeed is not liable for service interruptions, delays, or failures of external systems.

8. Data & Privacy Risks

Despite best-in-class protections, risks may include:

• Unauthorized data access

• Accidental exposure of personal or property information

• Third-party breaches

• Loss of data due to system failures

RealDeed follows DIFC Data Protection Law; however, clients must acknowledge inherent digital risks.

9. Revocation, Amendments, or Updates

RealDeed reserves the right to:

• Revoke or suspend a token if fraudulent documents are discovered

• Update or modify token metadata if property information changes

• Disable access to services in case of regulatory directives

• Alter tokenization methods to comply with DIFC Innovation Licence requirements

Such actions may occur without prior notice where legally required.

10. Client Responsibilities

By tokenizing property, the client acknowledges that:

• All submitted documents are truthful and legally valid

• They understand tokenization is a digital asset tokenization only

• They will not use RealDeed tokens for money laundering or financial purposes

• They remain fully responsible for legal compliance in their jurisdiction

• Property disputes must be handled through courts or land authorities, not through RealDeed.

• They understand RealDeed cannot intervene in ownership conflicts.

  
  

11. Limitation of Liability

RealDeed is not liable for:

• Legal disputes concerning ownership

• Errors in government land records

• Incorrect or fraudulent client submissions

• Market losses or financial misuse of tokens

• Delays caused by regulators, courts, or land authorities

• Loss of access to blockchain records

• Consequences of force majeure events

  
  

RealDeed provides technology services only, without legal guarantees of property title use.

12. Acknowledgment of Risks

By proceeding with tokenization, the property owner/client confirms:

• They have reviewed and understood all risks

• They are aware that tokenization does not replace legal documentation

• They acknowledge that RealDeed operates solely as a DIFC-licensed PropTech firm

• They accept full personal responsibility for all legal, regulatory, and property related consequences