24. Appendix 3 - Risks

24.1. RISKS

As set out at the beginning of these Terms, the Tokens are not being sold or structured as securities or any form of financial instrument. Accordingly, none of the risks set out herein are intended to form the basis for any investment decision and purchasers are doing so at their own risk.

24.2. Utility Use

The acquisition and use of Tokens carry a number of risks, and the Participant should carefully weigh all the risks and possible costs, including the non-exhaustive list of risks described in the Terms.

24.3. Suitability

The acquisition of Tokens from the Company is only suitable for financially sophisticated persons who are capable of evaluating the merits and risks of such an acquisition, or other persons who have been professionally advised with regard to token acquisition and who have sufficient financial resources to be able to bear any losses that may arise therefrom (which may be the entirety of the amount provided). Such an acquisition should not be seen as an investment or a financial asset.

24.4. Risk of Attacks

As with any other decentralised cryptographic tokens based on the Polygon network, the Tokens are susceptible to attacks on nodes in the course of validating Token transactions, including, but not limited to double-spend attacks, majority power attacks, and selfish attacks. Any successful attacks present a risk to the Tokens including but not limited to accurate execution and recording of transactions involving Tokens.

24.5. Risk of Hacking and Security weakness

Hackers or other groups or organisations may attempt to interfere with Tokens in a number of ways, including, but not limited to denial-of-service attacks, sybil attacks, spoofing, smurfing, malware attacks, or consensus-based attacks, and any such similar events which could have an impact on Tokens and any services the Company may offer from time to time.

24.6. Risk of Security weakness in the Smart Contract, Website and Token Source Code or any associated software and/or Infrastructure

There is a risk that the Smart Contract, Website or Tokens may unintentionally include weaknesses or bugs in the source code interfering with the use of or causing the loss of Tokens; the source code of the Website is open and could be updated, amended, altered, or modified from time to time.

The Company is unable to foresee or guarantee the precise result of an update, amendment, alteration, or modification. As a result, any update, amendment, alteration, or modification could lead to an unexpected or unintended outcome that adversely affects the Tokens. As a result, Tokens may be lost.

24.7. Risk of no Listing or low/no Liquidity

Even though there are currently online services available which enable exchange of cryptographic tokens with other such tokens or even enable the exchange of cryptographic tokens for fiat money, there are no warranties and/or guarantees that the Tokens will be made available for exchange with other cryptographic tokens and/or fiat money, and no guarantees are given whatsoever with regard to the capacity and/or volume of such exchange/s. It shall be explicitly cautioned that such exchange, if any, might be subject to poorly understood regulatory oversight, and the Company does not give any warranties in regard to any exchange services providers. Users including the Participant, if applicable, might be exposed to fraud and failure affecting those exchanges.

24.8. Risks Associated with Uncertain Regulations and Enforcement Actions

Blockchain technology allows new forms of interaction and that it is possible that certain jurisdictions will apply existing regulations on, or introduce new regulations addressing, blockchain technology-based applications, which may be contrary to the current setup of the smart contract implemented in the Token Sale and which may, among other things, result in substantial modifications to the smart contract, including its termination and the loss of your Tokens. Additionally, regulation of the business of the Company may be uncertain in various jurisdictions owing to the potential crossovers between the treatment of the business of the Company across financial services and blockchain technology laws and regulations. It is not known what regulatory framework the proposed ecosystem and associated applications will be caught by the nature and obligations that will be imposed on the Company in order to comply with any such regulatory framework or when/if the Company will even be able to apply to be regulated so that it may lawfully carry out its proposed business activities.

24.9. Risk of Malfunction in the Polygon Network or any other Blockchain and of Competing Ecosystems

It is possible that the Tokens are interacting with malfunctions in an unfavourable way, including but not limited to one that results in the loss of Tokens or prevent their use. It is possible that alternative platforms could be established that utilise the same open-source code and protocol underlying the Tokens and attempt to facilitate services that are materially similar. The Tokens may compete with these alternatives, which could negatively impact the utility of Tokens.

24.10. Risk of Uninsured Losses

Unlike bank accounts or accounts at some other financial institutions Tokens are uninsured unless you specifically obtain private insurance to insure them. Therefore, in the event of loss or loss of utility value, there is no public insurer or central compensation scheme such as the Financial Services Compensation Scheme, or private insurance arranged by the Company, to offer recourse to you.

24.11. Internet Transmission Risks

There are risks associated with using Tokens including, but not limited to, the failure of hardware, software, and internet connections, or other technologies on which the Tokens rely. Such failures may result in disruptions in communication, errors, distortions, or delays when using the Tokens or the Website.

24.12. Risk of Unfavourable Fluctuation of fiat or virtual currency value

If the value of Polygon or any other Accepted Currency fluctuates unfavourably during or after the Token Sale, we may not be able to fund development, or may not be able to develop or provide services as set out in the Purpose.

24.13. Risk of Dissolution of the Company

It is possible that, due to any number of reasons, including, but not limited to, an unfavourable fluctuation in the value of Polygon (or other cryptographic and fiat currencies), decrease in the Tokens’ utility (including their utility for obtaining Services), the failure of commercial relationships, or intellectual property ownership challenges, it may not be possible that the services set out in the Purpose may be provided by the Company or the Company may dissolve.

24.14. Unanticipated Risks

Cryptographic tokens such as the Tokens are a new and untested technology. In addition to the risks included in this Appendix there are other risks associated with your purchase, possession, and use of the Tokens, including unanticipated risks. Such risks may further materialise as unanticipated variations or combinations or combinations of the risks discussed in this Appendix.

24.15. Other Inherent Risks

The Participant understands and accepts the inherent risks associated with the Tokens, to the extent not covered elsewhere in the Terms, including, but not limited to, risks associated with (a) money laundering; (b) fraud; (c) exploitation for illegal purposes; and (d) any other unanticipated risks.

24.16. Risks Arising from Lack of Governance Rights

Since the Tokens do not represent or confer any ownership right or stake, share or security or equivalent rights, intellectual property rights or any other form of ownership participation relating to the Company, all decisions involving the Company will be made by the Company at their sole discretion, including, but not limited to, decisions to transfer more Tokens for use, to sell or liquidate the Company. These decisions could adversely affect the utility of that which the Participant holds.

24.17. Risk of losing Tokens due to loss of Private keys, Custodial Error or Participant Error

A Wallet is necessary to acquire, hold and dispose of Tokens. The Participant hereby understands that he is responsible for setting up the Wallet with a third-party provider or other non-custodial Wallet solution to hold Tokens and he is responsible for implementing reasonable measures for securing the Wallet. Accordingly, loss of requisite private key/s associated with the Wallet holding Tokens will result in loss of such Tokens and any other cryptocurrencies and/or tokens held within. Moreover, any third party that gains access to such private key/s, including by gaining access to login credentials of the Wallet that the Participant uses, may be able to misappropriate the Participant’s Tokens. Any errors or malfunctions caused by or otherwise related to the Wallet that the Participant chooses to receive and hold Tokens including the Participant’s own failure to properly maintain or use such wallet or caused as a result of the choice of third-party provider for the Wallet, may also result in the loss of Tokens. Additionally, the Participant’s failure to follow precisely the procedures set forth in the Terms for acquiring and receiving Tokens including but not limited to, the provision of the wrong Wallet address for receiving Tokens may also result in the loss of his Tokens.