Please consider the following risk factors (many of which are specific and inherent to cryptographic tokens) before using any part of our Wallet/website/platform and before purchasing and/or trading EXO Token cryptographic tokens or any other cryptographic token which we (or any third-party service provider accessed through our platform) may offer through our Wallet/website/platform from time to time (“ tokens”). The value of the tokens and your ability to access and transfer the tokens could be materially and adversely affected if any of these risk factors materialize. As a result, you expose yourself to considerable risk and potential financial losses when you purchase tokens.
Please also note that this Risk Statement is not exhaustive. It would help if you carried out further research (and sought professional advice) to carefully determine whether purchasing and trading tokens suit your particular financial situation and risk tolerance.
WE SHALL NOT BE LIABLE FOR ANY LOSS INCURRED BY YOU RESULTING FROM YOUR ACCESS TO OUR PLATFORM OR YOUR PURCHASE, TRANSFER, OR USE OF TOKENS.
TOKENS ARE HIGH-RISK ASSETS, AND YOU SHOULD NEVER USE FUNDS THAT YOU CANNOT AFFORD TO LOSE TO PURCHASE TOKENS.
1. PRICE VOLATILITY
The price of tokens can be subject to dramatic fluctuations and high volatility due to the rapid shifts in offer and demand resulting from events such as but not limited to:
AS A RESULT OF PRICE VOLATILITY, YOUR TOKENS MAY LOSE ALL VALUE AND BECOME WORTHLESS. WE SHALL NOT BE RESPONSIBLE FOR ANY LOSS INCURRED BY YOU AS A RESULT OF THE INHERENT PRICE VOLATILITY OF TOKENS.
2. CRYPTOGRAPHIC WALLETS
The tokens stored on cryptographic wallets ("Wallets"). A private key (for example, a passphrase) is usually necessary to access, control, and dispose of tokens stored in your Wallet. Losing access to the private key(s) associated with your Wallet may result in the permanent loss of your ability to access and dispose of your tokens.
You are solely responsible for implementing all reasonable and appropriate measures for securing access to your private key(s) and Wallet.
The tokens are recorded on distributed ledgers (typically shared across users) governed by, subject to, and distinguished based on a specific set of rules known as protocols.
3.1 Malfunction, breakdown and/or abandonment of protocols
Any malfunction, breakdown, and abandonment of the protocols (and of any consensus mechanism, where applicable) on which the tokens are based could severely affect the price of the tokens as well as your ability to dispose of the tokens (particularly where the protocol relies on substantial participation and broad networks to operate correctly).
3.2 Mining attacks
Some protocols integrate consensus-based mechanisms for validating transfers (“Consensus Protocols”). Therefore, consensus protocols are susceptible to attacks at the stage of validation, where the network approves the token transactions. This may affect the accuracy of transactions occurring on the protocol and your tokens being misappropriated (for example, through what is typically referred to as double-spending attacks).
3.3 Hacking and security weaknesses
Tokens may be subject to expropriation and theft. Bad actors (including hackers, groups, and organizations) may attempt to interfere with the protocols or the tokens in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing, and spoofing. Furthermore, some protocols are based on open-source software and, as a result, are subject to the risk of weakness being introduced to the protocols (either willingly or accidentally) at the development stage. Any such weakness may be exploited by bad actors for the purposes of misappropriating your tokens, or otherwise affecting the functionality of the protocol and of your ability to dispose of your tokens.
WE DO NOT HAVE CONTROL OVER THE PROTOCOLS. AS SUCH, WE SHALL NOT BE RESPONSIBLE FOR ANY LOSS ARISING OUT OF OR IN CONNECTION WITH THE PROTOCOLS.
4. LAWS AND REGULATIONS
The legal and regulatory framework surrounding tokens and distributed ledger technology is uncertain, not harmonized, and unsettled in many jurisdictions. It is difficult to predict what framework will become applicable to tokens shortly and how the implementation of dedicated legal and regulatory frameworks will affect the price of tokens. A newly introduced legal and regulatory framework may interfere with or otherwise limit your ability to hold or dispose of your tokens, which in turn could result in a financial loss on your part.
WE ARE NOT RESPONSIBLE FOR ANY LOSS WHICH YOU MAY SUFFER AS A RESULT OF ANY NEWLY INTRODUCED LEGAL OR REGULATORY FRAMEWORK.
5. UNANTICIPATED RISKS
In addition to the risks included in this document, there are other risks associated with your purchase, holding, trading, and use of tokens, some of which we cannot anticipate. Such risks may further materialize as unanticipated variations or combinations of the risks discussed in this section.
THIS RISK STATEMENT IS NOT EXHAUSTIVE AND SHALL NOT BE TAKEN TO ENCOMPASS ALL RISKS INVOLVED IN THE PURCHASE, HOLDING, TRADING, AND USE OF TOKENS. WE SHALL NOT BE RESPONSIBLE OR LIABLE FOR ANY LOSS SUFFERED BY YOU AS A RESULT OF UNANTICIPATED RISKS.