Read this before you borrow

Tapehouse is software: a set of smart contracts and this interface to them. It is not a broker or a bank, it holds no licence to provide financial services, and nobody at Tapehouse takes custody of your assets. Nothing on this site is investment, legal or tax advice, and nothing here is an offer of credit. Today it runs on a test network, where assets have no value.

A Stock Token is not a share. It is a debt security of the company that issues it, built to follow the price of a share or a fund. Holding one gives you no vote and no standing as a shareholder, and it can only be redeemed for cash, through the providers the issuer authorises.

That has consequences. You depend on the issuer staying solvent and honouring the token, which you would not if you owned the share. The token can trade away from the share it follows, most of all when the underlying market is shut. Splits and other corporate actions reach you through the token’s own adjustment, not through a broker. And issuers do not offer Stock Tokens to everyone: United States persons, among others, are excluded.

Borrowing against a portfolio can lose you part or all of it. If the value of your holdings falls far enough, some of them will be sold to repay the loan, and that can happen while the underlying market is closed.

A published band is an estimate, and it is sometimes wrong; that is why we publish the record. Price sources can fail, smart contracts can contain errors, and a network can halt.

Tapehouse may not be available where you live. Check before you use it.