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Frequently Asked Questions (FAQ)

Here are the most frequently asked questions from users. If you don't find your answer, feel free to ask in our [Telegram group].

🔍 Basic Concepts​

What are tokenized stocks?​

Tokenized stocks are digital representations of traditional stocks on the blockchain. They are pegged 1:1 to real stocks through smart contracts, allowing you to trade traditional stocks on the blockchain.

Key Features:

  • 24/7 trading, not limited by stock market hours
  • Support for small investments and fractional trading
  • Can participate in DeFi protocols (lending, liquidity mining, etc.)
  • Global access without geographical restrictions

What's the difference between tokenized stocks and traditional stocks?​

FeatureTraditional StocksTokenized Stocks
Trading HoursWeekdays 9:30-16:0024/7 around the clock
Minimum Investment1 shareAny amount
Settlement TimeT+2Instant
Global AccessGeographic restrictionsGlobal access
DeFi IntegrationNot supportedFully supported
Shareholder RightsFull rightsUsually no voting rights
RegulationTraditional financial regulationCryptocurrency regulation

Are tokenized stocks compliant?​

Yes, the tokenized stocks we feature are all from regulated issuers:

  • Backed Finance: Regulated by Swiss FINMA

However, please note that laws and regulations may differ in different regions. Please ensure legal trading within your jurisdiction.

💰 Trading Related​

How to start trading tokenized stocks?​

Step Overview:

  1. Choose a trading platform (View platform comparison)
  2. Set up wallet or register account
  3. Deposit funds (USDC, ETH, SOL, etc.)
  4. Select tokenized stocks to purchase
  5. Execute trades

Beginner Recommendation: Start with Kraken as it's regulated and user-friendly.

What are the trading fees?​

PlatformTrading FeeGas FeeOther Fees
KrakenFree (USDG/USD)NoneWithdrawal fees
Bybit0.1% (spot trading)NoneWithdrawal fees
Jupiter0.04% + Solana fees~$0.001None

What is the minimum trading amount?​

  • Kraken: $1 (xStocks)

  • Bybit: No limit

  • Jupiter: No limit

Can you short tokenized stocks?​

Some platforms support it:

  • Bybit: Supports perpetual contracts for some tokenized stocks
  • Kraken: Does not support shorting
  • Most DEXs: Do not directly support shorting

🔐 Security Related​

Is trading tokenized stocks safe?​

Security depends on multiple factors:

Platform Security:

  • CEX (like Kraken): Regulated with insurance protection
  • DEX: Decentralized but requires self-custody of private keys

Smart Contract Risks:

  • Code audit status
  • Runtime and historical records
  • Community trust level

User Operation Security:

  • Use hardware wallets
  • Verify contract addresses
  • Set reasonable slippage

How to protect my assets?​

Basic Security Measures:

  1. Use hardware wallets to store large amounts
  2. Enable 2FA (two-factor authentication)
  3. Verify website URLs to avoid phishing sites
  4. Test with small amounts before large transactions
  5. Regularly backup wallet seed phrases
  6. Diversify storage, don't put all funds in one place

What to do if the platform has issues?​

Centralized Exchanges:

  • Contact customer service
  • Check platform announcements
  • Follow official social media
  • Apply for compensation if insured

Decentralized Exchanges:

  • Check smart contract status
  • Review community discussions
  • Contact protocol team
  • Consider using other DEXs

📊 Price and Liquidity​

How do tokenized stock prices stay synchronized with traditional stocks?​

Arbitrage Mechanism:

  • When prices deviate, arbitrageurs conduct arbitrage trades
  • Authorized participants can create/redeem tokens
  • Oracles provide real-time price data

Typical Deviation:

  • Under normal conditions, deviation <1%
  • May deviate more under extreme market conditions
  • Higher liquidity leads to smaller deviations

Why do prices sometimes deviate from traditional stocks?​

Common Reasons:

  1. Insufficient Liquidity: Imbalanced buy/sell orders
  2. Market Sentiment: Unique sentiment effects in crypto markets
  3. Technical Issues: Oracle delays or failures
  4. Arbitrage Delays: Arbitrage mechanisms need time to take effect
  5. Extreme Markets: Major news when traditional stock markets are closed

How is the liquidity?​

Main Platform Liquidity:

  • Kraken: High liquidity, deep order books, 24/5 trading
  • Bybit: High liquidity, 24/7 trading, trade xStocks in Spot→USDT→Innovation Zone
  • Jupiter: Aggregates multiple DEXs, good liquidity

🌍 Geography and Legal​

Can my country/region trade tokenized stocks?​

Prohibited Regions (due to international sanctions):

  • Iran, North Korea, Syria
  • United States (xStocks not registered in the US)

Regions Where Services Are Not Provided:

  • Afghanistan, Belarus, Central African Republic, Democratic Republic of Congo
  • Cuba, Ethiopia, Haiti, Iraq, Lebanon, Libya
  • Mali, Mozambique, Myanmar, Nicaragua, Nigeria
  • Occupied territories of Ukraine, Philippines, Russia, Somalia
  • South Sudan, Sudan, Venezuela, Yemen, Zimbabwe

xStocks Special Restrictions:

  • Not available to residents of US, Canada, UK, EU, Australia
  • Limited to selected regions in Asia

Recommendations:

  • Check specific platform terms of service
  • Consult local legal experts
  • Understand tax reporting requirements

Do I need to pay taxes?​

Most regions require it:

  • United States: Treated as capital gains tax
  • Germany: Tax-free if held for more than 1 year
  • Singapore: Personal trading usually tax-free
  • United Kingdom: Treated as capital gains tax

Recommendations:

  • Record all transactions
  • Consult tax experts
  • Use tax software
  • Understand local specific regulations

🔧 Technical Issues​

What to do if a transaction fails?​

Common Causes and Solutions:

  1. Insufficient Gas Fee

    • Increase gas fee
    • Wait for network congestion to ease

  2. Excessive Slippage

    • Increase slippage tolerance
    • Trade in batches
    • Choose times with better liquidity

  3. Insufficient Balance

    • Check wallet balance
    • Ensure sufficient gas fees

  4. Network Issues

    • Refresh page
    • Switch network nodes
    • Wait for network recovery

How to choose appropriate slippage settings?​

Recommended Settings:

  • Small Transactions: 0.5-1%
  • Medium Transactions: 1-2%
  • Large Transactions: 2-5%
  • Extreme Markets: 5-10%

Note: Setting slippage too low may cause transaction failures, too high may result in price losses.

How to solve wallet connection issues?​

Common Solutions:

  1. Refresh page
  2. Reconnect wallet
  3. Clear browser cache
  4. Update wallet plugin
  5. Switch browsers
  6. Check network connection

💡 Advanced Features​

What is liquidity mining?​

Definition: Provide funds to liquidity pools to earn trading fee shares and token rewards.

Risks:

  • Impermanent Loss: Losses due to price changes
  • Smart Contract Risk: Code vulnerability risks
  • Token Price Risk: Price volatility of reward tokens

Suitable for: Users with DeFi experience

Can tokenized stocks be used for collateralized lending?​

Important Notes:

  • Currently, major platforms have limited support for tokenized stock collateralized lending
  • Recommend directly consulting specific platforms for latest policies
  • Collateralized lending involves liquidation risks, operate with caution

How to conduct arbitrage trading?​

Basic Strategy:

  1. Monitor price differences across platforms
  2. Buy on low-price platforms
  3. Sell on high-price platforms
  4. Consider trading fees and slippage

Risks:

  • Rapid price changes
  • Trade execution delays
  • Insufficient liquidity
  • Technical failures

🆘 Emergency Situations​

What to do if I forget wallet password/seed phrase?​

If completely lost:

  • Funds cannot be recovered
  • This is a blockchain characteristic
  • No "forgot password" function

Prevention Measures:

  • Backup seed phrases in multiple places
  • Use password managers
  • Consider multi-signature wallets

What to do if suspicious transactions are discovered?​

Immediate Actions:

  1. Stop using the affected wallet
  2. Transfer funds to a new wallet
  3. Check authorizations, revoke suspicious ones
  4. Report incident to relevant platforms
  5. Change passwords and security settings

What to do if platform is inaccessible?​

Response Measures:

  1. Check network connection
  2. Try VPN (if regional restrictions)
  3. Check official announcements
  4. Contact customer service
  5. Use alternative platforms

📞 Getting Help​

Where can I get more help?​

Official Channels:

  • 📱 [Telegram Group]
  • 💬 [Discord Server]
  • 💻 [GitHub Discussions]
  • 📧 [Email Support]

Learning Resources:

Community Resources:

  • Reddit communities
  • YouTube tutorials
  • Blog articles
  • Podcast shows

⚠️ Important Reminders​

  • Investment involves risks: May lose entire investment
  • DYOR: Do Your Own Research
  • Start small: Begin learning with small transactions
  • Keep learning: Markets and technology are constantly changing
  • Seek advice: Consult professionals when necessary

Last Updated: 2024-01-15 If your question is not answered here, feel free to ask in our community!