14.2 Market Volatility

The ARX token, like other digital assets, is subject to price volatility driven by market demand, liquidity, and macroeconomic conditions.

Risk factors

  • Token price fluctuation: External market forces can influence the ARX token price, independent of project fundamentals.

  • Liquidity risk: Low trading volume on exchanges may impact the ability to buy or sell tokens efficiently.

  • Macroeconomic conditions: Market downturns in the broader crypto or financial sectors may reduce token utility and adoption.

Mitigation

The ARX economic model emphasizes long-term utility and network-generated revenue rather than speculative trading. The DAO maintains liquidity reserves and treasury management policies to stabilize the token’s ecosystem value.

Last updated