16. Risk Assessment and Mitigation

Market Risk

• Risk: The luxury watch market is subject to volatility, with potential fluctuations in demand and pricing.

• Mitigation: Diversification of watches listed on the platform and building a robust community to stabilize demand.

Regulatory Risk

• Risk: Changes in regulatory frameworks for crypto and luxury trading can affect platform operations.

• Mitigation: Ongoing legal review, KYC/AML compliance, and maintaining flexibility to adapt to regulatory changes.

Security Risk

• Risk: Potential security vulnerabilities in smart contracts and platform architecture.

• Mitigation: Regular security audits, bug bounty programs, and best practices for secure coding.