How Does the Lock-up Period Affect the Liquidity Risk of a SAFT Investment?

The lock-up period significantly increases the liquidity risk of a SAFT investment. A lock-up is a contractual restriction that prevents the investor from selling or transferring the tokens for a specified period after they are delivered.

This means the investor cannot access or liquidate their investment even after the network is functional. The lock-up period is often required for regulatory compliance (e.g.

Regulation D resale restrictions) and to prevent a massive sell-off that could destabilize the token's price immediately after launch.