Read this before backing anything

Risk Disclosure

EFFECTIVE · JULY 22, 2026 · DRAFT

This document is a launch draft. Before Pebble accepts real funds it will be reviewed by qualified counsel, and the final version may differ. If anything here is unclear, ask us at @OnPebble before using the service.

The one-sentence version

You are buying a share of a real business's future revenue; if that revenue shrinks or stops, so do your payouts, and you can lose your entire contribution.

1. Business risk

Small software businesses fail, shrink, get out-competed, lose key customers, and shut down. A listing's revenue history — however long and however verified — does not guarantee its future. Growth rates shown on listings are historical facts, not projections.

2. Payout risk

Distributions are a fixed percentage of actual gross revenue. They are not a coupon, an interest rate, or a promise. If revenue falls 40%, your monthly payout falls 40%. Estimated figures such as "time to cap" recalculate constantly and will be wrong in both directions.

3. What the bond does and does not cover

The escrow bond covers missed distributions, not bad outcomes. If a Builder fails to fund a due distribution, the bond pays Backers an expected month and the listing is frozen and flagged. The bond is finite — typically two to three months of expected distributions — and once exhausted it protects nothing further. It does not insure against revenue decline or business failure.

4. Liquidity risk

A position pays out over months or years and cannot be redeemed early. There is currently no secondary market for Pebble positions. Commit only money you will not need before the cap is plausibly reached.

5. Technology risk

Agreements run as smart contracts on a public blockchain. Smart contracts can contain defects; Pebble's contracts are tested but, at this stage, not yet independently audited. Blockchains and payment processors can suffer outages. Transactions, once confirmed, are irreversible, and a compromised wallet means compromised funds — no one can restore them.

6. Verification limits

Revenue is read from the Builder's payment processor and attested cryptographically, which prevents self-reported numbers. It cannot detect every form of sophisticated fraud, such as a Builder cycling their own money through their product. Disclosure grades reflect the completeness of disclosure, not a judgment of quality or safety.

7. Regulatory risk

The legal treatment of revenue-share instruments and blockchain settlement varies by jurisdiction and is evolving. Future regulation could restrict the platform, freeze activity, or change what Backers and Builders are permitted to do. Tax treatment of distributions is your responsibility.

8. Concentration

Backing one listing concentrates your risk in one small company. Nothing about Pebble's verification, bonding, or disclosure changes the mathematics of putting money you cannot afford to lose into any single early-stage business.

If any of this is unacceptable to you, do not back listings on Pebble.