What Is the Primary Risk for Investors Who Purchase a SAFT?

The primary risk for investors who purchase a SAFT is that the underlying network may never be fully developed or become functional, leaving them with a worthless contract for a token that does not exist or has no utility. Furthermore, there is the regulatory risk that the delivered utility token, even upon network launch, may still be classified as a security by the SEC, subjecting it to transfer restrictions and limited liquidity.

Essentially, the investor risks capital in a project that may fail both technically and legally.