11.1 Real Estate Investment Risks

Real estate, while historically one of the most stable asset classes, is not without its risks. Properties can lose value due to macroeconomic downturns, changes in local demand, unexpected maintenance issues, or geopolitical instability.

Mitigation Strategy:

• Diversification: Asset Avenue offers users the ability to diversify across geography, property types, and risk levels. Investors are encouraged to spread their capital across multiple projects.

• Due Diligence & Auditing: Every listed property is subject to rigorous due diligence by the Asset Avenue internal team and third-party experts. This includes legal, structural, financial, and environmental audits.

• Insurance: Properties are insured with reputable providers for damage, liability, and loss of income.

• DAO Oversight: The SPV DAO structure ensures that every investor is actively involved in risk mitigation decisions, including setting aside reserves for unexpected expenses.