Like all real projects, there are certain economic factors that can become a
Price of oil could drop significantly in the future, which would make the
SOPX rewards less
valuable. The odds of this occurring are extremely low, but it is certainly
a possibility. You
can use the on-site calculator to estimate the Impact of this risk.
The cost of certain Items In the project (such as solar panels or the
could rise over time with Inflation or shortages. To mitigate this risk, SOP
partnerships with the actual equipment manufacturers with long term pricing
Oil output from certain wells or well locations could drop. We have backups
in these cases
where we can make up the production required with other sites or by
requesting the oil well
operator to move the pumps and equipment to a different location.
Price of oil may also fluctuate causing the net value of tokens to no longer
match. To ensure
liquidity protection, partnered operator companies are required to maintain
a balance of
futures and derivative contracts to offset this risk.
Finally, there exists the risk of hacks and damage to the SOP platform. To
prevent long term
harm from this, all tokens are held in separate wallets with no keys or
on any server. Further, all user data is kept off-site and since SOP does
not provide any fiat
conversion options, there is no personally identifying information that is
collected or kept on
the SOP servers.