Markets fluctuate and real estate is not immune from these risks. Historically, real estate tends to be less volatile than other forms of investments and it can also provide a hedge against inflation. However, to hedge against possible calamitous events, such as COVID shutting down travel in 2020, RealEx DAO’s investment guidelines require that the DAO hold at least two years of operating capital reserves on our balance sheet to support the assets in the portfolio, meaning that the DAO can continue to hold the property, even if they lose all rental income, for two years. The DAO can also take additional measures, such as refinancing buildings, to help navigate downward cycles.