Understanding Fan Tokens and Crypto on Socios.com
Welcome to your essential guide for understanding Socios.com, Fan Tokens, and Chiliz ($CHZ) tokens. Whether you’re new to the platform or looking to deepen your knowledge, this guide will walk you through all the key facts, risks, and best practices to help you make informed decisions.
1. Understanding Socios.com and Fan Tokens
🔹 What is Socios.com?
Socios.com is a platform where sports fans can buy, trade, and engage with their favorite teams using Fan Tokens. These tokens allow you to vote on club decisions, access exclusive rewards, and participate in polls.
🔹 What Can You Do on Socios.com?
✔  Buy Chiliz ($CHZ) tokens directly from Socios.com
✔  Exchange or swap Chiliz ($CHZ) for Fan Tokens on a decentralised exchange (Socios.com is solely providing the interface to an independent decentralised exchange, and is not involved with the exchange of any crypto assets)
✔  Stake your Fan Tokens for Reward Points
✔  Participate in exclusive polls and rewards programs
✔  Use a non-custodial wallet to store and manage your tokens securely
âš What Socios.com is NOT:
❌  It is NOT a traditional cryptocurrency exchange (you can’t buy Bitcoin or Ethereum)
❌  Buying Fan Tokens does NOT make you a shareholder in a sports club
❌  Socios.com is not custodian of your tokens and has no access to them
2. Crypto and Investment Risks
🔹 Are Fan Tokens a Safe Investment?
No. Fan Tokens and Chiliz tokens ($CHZ) are considered high-risk investment.
âš Important investment rules:
🔸  Do not invest more than 10% of your net assets in Fan Tokens
🔸  Unlike stocks or bonds, Fan Tokens do NOT guarantee a return
🔸  Their value can fluctuate based on market demand and team performance
🔹 How Are Fan Tokens Different from Traditional Investments?
Unlike stocks, bonds, or ETFs, Fan Tokens:
✔  Do not provide ownership in a company or a sports club
✔  Are not regulated like traditional financial investments
✔  Can be highly volatile—their value can rise and fall unpredictably causing you to lose all the the money you invest
âś…Â Â Best practice: Treat Fan Tokens as a fun way to engage with your team rather than a serious financial investment.
3. Regulation and Consumer Protection
🔹 Is Socios.com Regulated by the FCA?
No. Socios.com is NOT authorized by the UK Financial Conduct Authority (FCA), meaning:
❌  Your Fan Tokens are not covered by investor protection schemes
❌  The Financial Ombudsman Service (FOS) does NOT handle disputes about Fan Tokens
❌  If you lose money due to market fluctuations, you cannot claim compensation
🚨  Socios.com must warn users about investment risks but is not required to offer refunds or price guarantees.
4. Security and Account Protection
🔹 How to Keep Your Fan Tokens and $CHZ Safe?
✔  Use strong passwords and secure storage for your private keys
✔  If you lose access to your private key and recovery kit, your funds will be permanently inaccessible
✔  If someone steals your private key, they can control your funds—transactions cannot be reversed
✔  Socios.com does NOT guarantee refunds for stolen or lost tokens
âš Common mistakes that lead to loss of funds:
❌  Sharing your private key with others
❌  Falling for scams that promise to double your tokens
❌  Buying tokens from unknown individuals
5. Liquidity and Market Risks
🔹 Can You Always Sell Your Fan Tokens?
Not necessarily. Selling may be difficult if:
🔸  Demand is low – fewer buyers mean you may have to sell at a lower price
🔸  Technical issues or outages occur – system failures can prevent transactions
🔸  Market prices drop suddenly – you may lose all your investment
✅  Best practice: Never invest money you can’t afford to lose.
6. Staking Fan Tokens – Risks & Rewards
🔹 What Happens When You Stake Fan Tokens?
When you stake your Fan Tokens, they:
✔  Stay in your non-custodial wallet, meaning you still own them
✔  Are locked in a smart contract for a period, meaning you can’t sell them until the staking and unstaking period ends
✔  May fluctuate in value during staking—you can’t sell them immediately if the price drops
âš Â Â Key risk: If the value drops while your tokens are staked, you cannot sell them until the staking period ends.
7. Using Third-Party dApps on Socios.com
✔  Socios.com does NOT own or control third-party decentralized apps (dApps)
✔  If you use a dApp, you accept their terms & conditions
✔  Socios.com does NOT guarantee security or refunds for third-party dApps
âś…Â Â Best practice: Research any dApp before using it and understand its risks.
Final Tips for Making Smart Decisions
✔  Know the facts – Socios.com is a platform for Fan Tokens, NOT an investment exchange
✔  Understand the risks – Crypto is highly volatile, and Fan Tokens are not protected by the FCA
✔  Protect your funds – Use a secure wallet and never share your private key
✔  Be aware of staking risks – You cannot sell staked tokens until the staking period ends
✔  Avoid scams – Never buy Fan Tokens from unknown sources
🎯  With the right knowledge, you can make informed decisions about Socios.com and Fan Tokens! 🚀
