This risk disclosure is important. Please read it carefully before investing. All investments carry risk and you may lose some or all of your invested capital.
Risk Disclosure
Last updated: July 2026
1. No Guaranteed Returns
The annual return rates of 4.5%, 2.5%, 5%, and 3.9% stated on the Safaricoin platform (for the Beginner, The Daily Guardian, The Treasury Accelerator, and The Sovereign Max tiers respectively) are target rates based on current market conditions and our fund allocation strategy. These rates are not guaranteed. Actual returns may be higher or lower and are subject to change without notice based on DeFi protocol performance, government securities yields, and overall market conditions.
2. DeFi Smart Contract Risk
A portion of your investment is deployed into decentralised finance (DeFi) lending protocols. While we use only established and audited protocols, smart contracts are software and may contain undiscovered vulnerabilities. An exploit of these protocols could result in partial or total loss of funds deployed to them.
3. Stablecoin Risk
USDT (Tether) is a stablecoin pegged to the US Dollar. While USDT has maintained its peg historically, stablecoins are not risk-free. A de-pegging event, regulatory action against the stablecoin issuer, or reserve insolvency could affect the value of your USDT holdings.
4. Government Securities Risk
While government bonds and Treasury Bills are considered very low-risk instruments, they are not risk-free. Sovereign default, although extremely rare, is possible. Currency devaluation in countries where T-bills are held could affect returns when converted back to USDT.
5. Liquidity Risk
During periods of unusually high withdrawal requests, the platform may require additional time to process withdrawals beyond the standard 24-hour window. We maintain a 10% liquidity reserve to manage this risk, but this reserve may not be sufficient during extreme market events.
6. Regulatory Risk
The regulatory environment for cryptocurrency-linked investment products is evolving rapidly across Africa and globally. Future regulatory changes could affect our ability to operate, force changes to our fee structure, or require us to terminate services in certain jurisdictions without notice.
7. Platform Risk
Safaricoin Ltd. is a private company. While we are committed to long-term operation, there is inherent risk in any private company including the possibility of operational failure, key personnel loss, or business cessation. We strongly recommend not investing more than you can afford to lose.
8. Network and Technical Risk
Blockchain networks can experience congestion, forks, or technical issues that may delay or complicate transactions. Sending funds to incorrect wallet addresses or on incorrect networks (non-BEP-20) results in permanent loss of those funds with no recovery possible.
Our Commitment
Safaricoin is committed to honest, sustainable operations. We publish our fund allocation strategy, we do not promise impossible returns, and we maintain operational reserves. If you have any questions about these risks, please contact us at support@safaricoin.co.ke before investing.