Please consider the following risk factors (many of which are specific and inherent to cryptographic tokens) before using any part of our website/platform and before purchasing and/or trading Flork cryptographic tokens or any other cryptographic token that we (or third party provider services) may offer through our website/platform from time to time (“tokens”). The value of the tokens, as well as your ability to access and transfer the tokens, could be materially and adversely affected if any of these risk factors materialize. As a result, when buying tokens, you expose yourself to considerable risk and possible financial loss.
Please also note that this Risk Statement is not exhaustive. You should conduct further research (and seek professional advice) to carefully determine whether buying and/or trading tokens is right for your specific financial situation and risk tolerance.
SUBJECT TO ANYTHING TO THE CONTRARY SET FORTH IN OUR EULA, WE WILL 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 YOU CANNOT LOSE TO PURCHASE TOKENS.
1. PRICE VOLATILITY
The price of tokens can be subject to dramatic fluctuations and high volatility due to rapid changes in supply and demand resulting from events such as, but not limited to: (a) good or bad publicity, (b) changes in the fintech industry, (c) technological advancement, (d) market trends, (e) general economic and/or political conditions, (f) degree of adoption, (g) degree of institutional support, (h) regulatory measures, (i) degree of government support, (l) market dynamics, (m) trading activities, (n) hacking and (o) events affecting major service providers including exchanges.
AS A RESULT OF PRICE VOLATILITY, YOUR TOKENS MAY LOSE ALL VALUE AND BECOME VALUELESS. WE WILL NOT BE LIABLE FOR ANY LOSS INCURRED BY YOU AS A RESULT OF THE INHERENT PRICE VOLATILITY OF TOKENS.
2. CRYPTOGRAPHIC WALLETS
Tokens are stored in cryptographic wallets (“Wallets”). A private key (eg a password) is generally required to access, control and/or dispose of tokens stored in your Wallet. Losing access to the private key(s) associated with your wallet may result in you permanently losing your ability to access and dispose of your tokens.
You are solely responsible for implementing all reasonable and appropriate measures to protect access to your private key(s) and Wallet.
WE DO NOT HAVE COPIES OF YOUR PRIVATE KEY(S). WE WILL NOT BE LIABLE FOR ANY LOSS RESULTING FROM YOUR INABILITY TO ACCESS YOUR WALLET AND/OR PRIVATE KEYS.
Tokens are registered on distributed ledgers (usually shared between networks of users) which are governed, subject and differentiated based on a certain set of rules known as protocols.
3.1 Malfunction, breach and/or abandonment of protocols
Any malfunction, failure, and/or abandonment of the protocols (and any consensus mechanism, where applicable) upon which the tokens are based could severely affect the price of the tokens, as well as your ability to dispose of the tokens (especially when the protocol relies on substantial participation and broad networks to operate properly).
3.2 Mining attacks
Some protocols incorporate consensus-based mechanisms for validating transfers (“Consensus Protocols”). Consensus protocols are therefore susceptible to attacks in the validation phase, where token transactions are approved by the network. This can affect the accuracy of transactions that occur over the protocol and the misappropriation of your tokens (for example, through what are commonly referred to as double-spending attacks).
3.3 Hacking and security vulnerabilities
Tokens may be subject to expropriation and/or theft. Malicious actors (including hackers, groups, and organizations) can attempt to tamper with protocols or 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 weaknesses being introduced into the protocols (either voluntarily or accidentally) in the development phase. Any of these weaknesses can be exploited by malicious actors with the aim of misappropriating your tokens or affecting the functionality of the protocol and your ability to discard your tokens.
WE HAVE NO CONTROL OVER THE PROTOCOLS. ACCORDINGLY, WE WILL NOT BE RESPONSIBLE FOR ANY LOSS ARISING FROM
4. LAWS AND REGULATIONS
The legal and/or regulatory framework around tokens and distributed ledger technology is uncertain, non-harmonised and unstable in many jurisdictions.
It is difficult to predict which framework will apply to tokens in the near future and how the implementation of dedicated legal and/or regulatory frameworks will affect the price of tokens. A newly introduced legal and regulatory framework may interfere with or limit your ability to hold or dispose of your tokens, which in turn may result in a financial loss on your part.
WE ARE NOT RESPONSIBLE FOR ANY LOSS YOU MAY SUFFER AS A RESULT OF ANY RECENTLY INTRODUCED LEGAL AND/OR REGULATORY FRAMEWORK.
The tax characterization of tokens is complex and highly uncertain. Uncertainty in the tax treatment of tokens may expose you to unforeseen future tax consequences associated with the purchase, ownership, sale or use of tokens. You should seek tax advice to understand what tax obligations apply to you when purchasing, holding, transferring and using tokens. Failure to meet your tax obligations can result in severe fines and even imprisonment.
WE ARE NOT RESPONSIBLE FOR ANY LOSS OR OTHER FORM OF LIABILITY ARISING OUT OF OR RELATED TO YOUR FAILURE TO COMPLY WITH ANY TAX LIABILITY WHICH IS OR WILL BE APPLICABLE TO YOU.
6. UNEXPECTED 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 predict. These risks may further materialize as unforeseen variations or combinations of the risks discussed in this section.
THIS RISK STATEMENT IS NOT EXHAUSTIVE AND SHOULD NOT BE DEEMED TO COVER ALL RISKS INVOLVED IN THE PURCHASE, MAINTENANCE, TRADING AND USE OF TOKENS. SUBJECT TO THE TERMS OF THE EULA, WE WILL NOT BE RESPONSIBLE OR LIABLE FOR ANY LOSS SUFFERED BY YOU AS A RESULT OF UNEXPECTED RISKS.