Risk Disclosure Statement
Last Updated: February 1, 2024 Version: 1.0
Acceptance. This Risk Disclosure Statement is a part of and shall be read in conjunction with the Equadyne Terms of Service (the βTermsβ). Capitalised terms used in this Risk Disclosure Statement shall have the meanings assigned to them in the Terms. Any access to or use of the Platform shall be subject to your acceptance and assumption of the risks set out in this Risk Disclosure Statement. You should note that all risks set out herein are not intended to be exhaustive nor to be presented in any assumed order of priority.
Liquidity and Market Risks. There is no guarantee that there is or will be an active market to buy or sell the Digital Assets. In addition, markets for Digital Assets (in general) are highly volatile and, therefore, there is no assurance with respect to the price of the Digital Assets and the degree of liquidity regarding the Digital Assets. There may be no liquidity or market for the Digital Assets at all and it is possible that the Digital Assets will become useless or abandoned. Fluctuations in the price of the Digital Assets could materially and adversely affect (i) the value of the Digital Assets, which may also be subject to significant price volatility, (ii) the Funds and their performance, or (iii) the Protocol, its underlying logic, or its performance. There is no guarantee, express or implied, that any Digital Assets will retain their original value, have any specific price or hold any particular value, or have any value at all, or that the use of the Platform will be profitable.
Volatility. Digital Assets are extremely volatile which means that their value and applicable exchange rates may change dramatically in a very short time depending on various factors and forces. Furthermore, the composition of Digital Assets supplied to the Funds may change, their value may go up or down, or drop significantly. We do not intermediate your interactions with the Funds, Fund Managers, or Third-Party Protocols, and shall not be responsible for or held liable in connection with any damages or losses that you may incur as a result of or in connection with the change in the composition, value or price of your Digital Assets.
Risk of Software Weaknesses. There is no warranty or representation that the Platform is secure or safe, or protected from fishing, malware, hacker or other malicious attacks. Further, the Platform and software may contain weaknesses, bugs, vulnerabilities, viruses or other defects which may have a material adverse effect on the operation of the Platform or may lead to losses and damages for you, other users of the Platform or third persons.
Risks Inherent in the Blockchain. The Platform relies on a set of autonomous smart-contract systems implemented on the decentralised public blockchain networks. As a result, any malfunction, breakdown or abandonment of the underlying blockchain may have a material adverse effect on the Platform. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the Platform and related blockchain software by rendering ineffective the cryptographic consensus mechanism that underpins the blockchain on which they are implemented. The smart-contract concept and the underlying blockchain networks are still in an early development stage and unproven. The blockchain networks can be attacked which may result in downtime, consensus split, long reorganisation of the chain, 51% attack or other adverse outcomes each of which may lead to partial or complete loss of your Digital Assets.
Risks Inherent in the Protocol. The Platform allows you to interact with, and partially relies on, the Protocol. There is no warranty or representation, express or implied regarding the Protocol and its performance. The Platform is provided βas isβ, operates autonomously and we shall not be responsible for it. Furthermore, the Protocol may not (i) perform as intended or expected, (ii) meet your expectations, (iii) fit for a particular purpose, (iv) be secure or error-free, or (v) be profitable. We are neither a developer, nor a manager or operator of the Protocol. There is no endorsement, recommendation, or solicitation to use the Protocol, and you hereby acknowledge and agree that any use of the Protocol shall always be at your own risk and discretion.
Risks Associated with the Funds. The Protocol allows you to create, transact in or otherwise interact with the Funds. We are neither manager, nor administrator or operator of the Funds, and are not responsible for their performance. There is no assurance that any information and data associated with any Fund are accurate, true, correct, up-to-date, complete or not misleading, or that your interaction with any Fund will be profitable or suitable for you. There is always a risk that the Fund may not perform as intended or represented, or meet your expectations. You shall conduct your own research and due diligence on each Fund which you are willing to transact in or otherwise interact with.
Risks Arising From the Tax Obligations. Any acquisition, holding, use or disposition of the Digital Assets, and any transactions carried out through or in relation to the Platform may have certain tax consequences for you, imposed and levied by any state or government authority. Tax laws and their interpretations with regard to the Digital Assets may be uncertain or not clearly established in the jurisdiction where you reside. Furthermore, the current interpretation of the tax laws and regulations may be subject to change, and the existing laws may be altered with a retrospective effect. You are solely responsible for fulfilling your tax obligations, and any failure to collect, withhold, report or remit any applicable Taxes may result in penalties, fines, or other legal consequences to you.
Risk of Inaccurate Data. The Platform may derive certain information from the blockchain network(s) or certain other third-party software in an automated manner, which means that such information is not verified or checked manually. As a result, such information can be incorrect, incomplete, untimely, inaccurate, or insufficient. No warranties are being made that any information provided through or in relation to the Platform will be complete or accurate. The information and data available on the Platform or in the Materials are non-binding and provided for information and descriptive purposes only, and you shall independently verify such information, and decide whether to perform any specific transaction or not.
Risk of Forward-Looking Statements. The Materials may contain certain opinions, forecasts, projections, future plans or other statements regarding Equadyne or the Platform, other than statements of historical fact, based on current expectations, that are deemed forward-looking statements. Forward-looking statements involve a number of risks and uncertainties and are, to different degrees, uncertain or unknown. There is no assurance that any forward-looking statements will prove to have been correct. Actual events, results or outcomes could differ materially from what is stated in the forward-looking statements, and you should not rely on any such forward-looking statements.
Counterparty Risks. You should always be diligent when interacting with third parties regarding the Digital Assets. Such third parties may include any persons, including counterparties to a transaction. There is always a risk that such third persons will not act in a timely or reliable manner, or as expected or intended, or may fail to act, which can lead to inaccessibility of the functionality of the Platform, or partial or complete loss of the respective Digital Assets.
Risk of Flawed Logic of the Platform. The underlying logic of the Protocol or Protocol may be flawed, defective or impaired, which can result in the software and Smart-Contracts operating incorrectly or not as expected, or transactions being executed in violation of the logic which underpins the respective software and Smart-Contracts, which can lead to partial or complete loss of the Digital Assets used in the respective transaction within the Platform.
Risk of Failure to Perform. There is no assurance that the Platform or its components will perform as intended or expected, or will perform at all. There is no warranty or guarantee that the Platform will operate and/or be available for any period of time.
Risks Relating to the Platform Downtime and Maintenance. The Platform or its components may become inaccessible or inoperable from time to time due to various reasons, such as maintenance procedures, updates, disruptions, third-party interferences, etc. Any of the above may lead to the Platform downtime and/or lack of access to the Platform or its components, potentially resulting in a delay or cancellation of any transactions to be processed, your inability to complete any transactions, and/or partial or complete loss of the Digital Assets used in the respective transaction.
Risk of Confusing User Interface. Certain user interface elements or design decisions can be confusing or mislead you, which may result in the execution of a different action or transaction than intended or desired, or connection of a wrong Wallet, account or network.
Risk of Theft. There is no assurance that there will be no theft of the Digital Assets as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, double-spent attacks, flash-loan attacks, vulnerabilities or defects of the Platform, Protocol, underlying blockchain networks, or related software. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. Any of the above may lead to partial or complete stealing or loss of the Digital Assets used in transactions carried out through the Platform.
Risks Associated with the Credentials. It is your responsibility to ensure the security and confidentiality of the Credentials, as well as the security and integrity of any devices or systems (both hardware and software) used by you to access and use the Platform or Wallet. If your Credentials or any devices used in connection with the Platform are compromised or stolen, intruders may access your Accounts or Wallets and dispose of the Digital Assets held within them. Furthermore, there is also a risk that your Credentials associated with the respective Account may not be restored, and you may be unable to access such Account. We encourage you to properly back up your Credentials.
Risks Inherent in the Digital Assets. The legal status and nature of the Digital Assets are still uncertain in some jurisdictions. According to the laws of the jurisdiction where you are located or resided, it may become illegal to use or hold the Digital Assets. There is also a risk that certain activities involving Digital Assets may be deemed in violation of any applicable law or regulation. Penalties for any such potential violation would be unknown. In general, the Digital Assets are not backed by any physical assets and may not have any intrinsic value. The volatility and unpredictability of the value of Digital Assets relative to the fiat currency, meaning the government-issued currency that is designated as legal tender through government decree, regulation, or the law, may result in significant or complete losses over a short period of time.
Risk of Legal Uncertainty. The Platform and its functionality may be subject to various laws and regulations in the jurisdictions where it operates or intends to operate. The operation of the Platform might be subject to obtaining different licences or other permissive documents, if so directed by applicable laws. There is a risk that certain activities conducted through or in relation to the Platform may be deemed in violation of any law or regulation. Penalties for any such potential violation would be unknown. Additionally, changes in applicable laws or regulations, or evolving interpretations of existing law could, in certain circumstances, result in increased compliance costs or capital expenditures, which could affect the development, operation, and maintenance of the Platform.
Unanticipated Risks. In addition to the risks set forth herein, there are risks that cannot be anticipated. Further risks may materialise as unanticipated combinations or variations of the discussed risks or the emergence of new risks.
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