Risks and Due Diligence

RWA investing combines crypto risks with TradFi risks — smart contracts plus credit, custody, legal, and regulatory failure modes. Due diligence spans on-chain code and off-chain documents; neither alone is sufficient.

Issuer default and custodian failure sit at the top of off-chain risk. Smart contract bugs matter mainly in permissionless wrapper layers — the underlying fund may be sound while a secondary protocol integrating it is not.

Build a checklist: custodian audits, oracle source, securities exemption, redemption gates, secondary liquidity depth, and who bears loss on default. RWA due diligence is closer to fund analysis than memecoin trading.