Risks
A token carries many implicit risks, some of which we will mention below, but this does not mean that there are no others.
These risks may result in the complete loss of tokens, or their value. The token holder assumes and fully understands all the risks involving tokens.
In the event that the token loses value or anything else occurs, the token issuer may not, under any circumstances, compensate the token holder in any way.
Offering and Trading Risks
Illiquidity Risk
It is possible that the token in question may not be listed on any secondary market or that there may be a lack of liquidity in OTC (Over-The-Counter) markets.
The company is not responsible for any fluctuations that the token in question may suffer in any type of market, or for the fact that such markets may allow the token to be listed, which may entail illiquidity risks. Even if the token were to be listed on a third-party platform, such platforms may not have sufficient liquidity or even face risks of regulatory or compliance changes, thus being susceptible to failure, fall or manipulation.
In addition, to the extent that a third-party platform lists the token in question, granting an exchange value to the token (either in cryptocurrencies or fiat money), such value may suffer volatilities. As a buyer of this type of asset, the user assumes all risks associated with the aforementioned speculation and risks.
Risks Associated With the Execution of the Project and/or the Issuer
Forward-Looking Information Risk
Certain information contained herein is forward-looking, including financial projections and business growth projections. Such forward-looking information is based on what the Company's management believes to be reasonable assumptions, and there can be no assurance as to the actual results. Future events could differ substantially from those anticipated.
Unanticipated Risks
Cryptographic tokens are a newly created technology that is still in the testing phase. In addition to the risks mentioned above, there are other risks associated with their acquisition, storage, transmission and use, including some that can hardly be anticipated. Such risks may further materialize with unforeseen variations or arising from combinations of the above-mentioned risks.
Regulatory Risk
Blockchain technology allows for new forms of interaction and certain jurisdictions may apply existing regulations or introduce new regulations that address applications based on blockchain technology, which may be contrary to the current configuration of smart contracts and may, among other things, result in substantial modifications to smart contracts, including their termination and the loss of tokens to the buyer.
Risk of Project Failure or Abandonment
The development of the project proposed by the Issuer herein may be impeded and stopped for different reasons, including lack of interest from the market, lack of funding, lack of commercial success or prospects (e.g., caused by competing projects). This token issuance does not guarantee that the objectives set forth herein will be fully or partially developed or that it will bring benefits to the holder of tokens offered by the Issuer.
Competitive Risk
It is possible that other companies may provide services similar to that of the company. The company could compete with these other businesses, which could have a negative impact on the services provided by the company.
Risks Associated With Tokens and the Technology Used
High-Risk Product
This type of product has high implicit risk. The value of tokens may fluctuate up and down and a buyer may not recover the capital initially used.
There may also be changes in taxation and/or possible tax deductions. The aforementioned taxes and tax deductions always refer to those in force and their value will depend on the circumstances of each buyer. Participation in such projects must always be made taking into account all the information provided by the issuer.
Software Risk
The smart contract by which the referred tokens are traded are based on the BnB Blockchain. Any malfunction, crash or abandonment of the BnB Blockchain may cause adverse effects on the operation of the tokens in question.
On the other hand, technological advances in general and in cryptography in particular, such as the development of quantum computing, may bring risks that result in the malfunction of the tokens in question.
Smart Contracts and the software on which they are based are at an early stage of development. There is no guarantee or way to ensure that the issuance of tokens and their subsequent marketing may be interrupted or subject to any other type of error, remaining an inherent risk of defects, failures and vulnerabilities that may result in the loss of the funds contributed or the tokens obtained.
There is a risk of hacker attacks on the technological infrastructure used by the Issuer and on essential networks and technologies. As a result, the Issuer may be partially, temporarily or even permanently prevented from carrying out its business activities.
Other computer attacks on the BnB Blockchain, software and/or hardware used by the Issuer could also occur. In addition to hacker attacks, there is a risk that Issuer's employees or third parties may sabotage technological systems, which may result in the failure of the Issuer's hardware and/or software systems. This could also have a negative impact on the Issuer's business activities.
Risk of Custody / Loss of Private Keys
The Issuer's token buyer acknowledges, understands and agrees that in case of loss or theft of the private key or password, the buyer may lose access to the tokens permanently. In addition, any third party with access to the aforementioned private key could misappropriate the tokens contained in the digital wallet in question. Any error or malfunction caused by or related in any way to the digital wallet or token storage system in which the buyer wishes to receive its tokens may also result in a loss of tokens.
Risk of Theft
The concept of Smart Contracts and the software platform on which they operate may be exposed to cyber-attacks or hacks by third parties, whether through malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Any of these attacks could result in the theft or loss of invested capital or acquired tokens which, in turn, could lead to the non-achievement of the objectives set forth by the Issuer herein.
Risk of Incompatible Wallet Services
The digital wallet service provider or the digital wallet used to receive tokens must comply with the BEP20 token standard to be technically compatible with such tokens. Failure to ensure such compliance may result in the investor not gaining access to their tokens.
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