Risk Analysis
You acknowledge and agree that there are numerous risks associated with purchasing $CAP, holding $CAP, and using $CAP for participation in the Capverse Ecosystem. In the worst scenario, this could lead to the loss of all or part of the $CAP which had been purchased. IF YOU DECIDE TO PURCHASE $CAP, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:
The risk of loss caused by the loss of the wallet
The $CAP purchased by the users will be transferred into the users’ digital wallets after allocation. $CAP will be lost if users lose the wallet. Please keep one’s digital wallet safe.
The risk related to BEP20's core agreement
$CAP tokens are developed based on the BEP20 protocol, so any failure of the BEP20 core protocol, unexpected functional problems or attack on BEP20 may cause $CAP or applications of the Capverse Ecosystem to stop working or lose function in unknown ways.
The risk related to the judicial supervision
The regulatory status of $CAP and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of virtual currencies has become a primary target of regulation in all major countries. It is impossible to predict how, when, or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including $CAP and/or the Capverse Ecosystem. Regulatory actions could negatively impact $CAP and/or the Capverse Ecosystem in various ways. The Foundation, the Distributor (or its affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. After consulting with a wide range of legal advisors and continuous analysis of virtual currencies' development and legal structure, a cautious approach will be applied toward the sale of $CAP. Therefore, for the token sale, the strategy may be constantly adjusted to avoid relevant legal risks as much as possible. For the token sale, the Foundation and the Distributor are working with Tzedek Law LLC, a boutique corporate law firm in Singapore with a good reputation in the blockchain space.
The risks that related applications or products do not meet the expectations of the Capverse Ecosystem itself or buyers
The Capverse Ecosystem is in the developmental stage. Big changes could occur from the current projections to the time of release of the official version of the Capverse Ecosystem, any expectation or imagination of the Capverse Ecosystem itself or the buyer for the function or form (including the behaviours of participants) of the Capverse Ecosystem, $CAP could fall flat, and any wrong analysis or the change of the underlying design also could lead to the occurrence of this kind of situation. There is the risk that the development of the Capverse Ecosystem will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency, $CAP, unforeseen technical difficulties, as well as shortage of development funds for activities.
The risk of hacker or theft
It is possible that the hackers or other organisations or countries attempt to disrupt applications on the Capverse Ecosystem, $CAP in any way, including denial of service attacks, Sybil attacks, phishing, malware attacks or consistency attacks, etc.
The risks of bugs or rapid development of cryptography cracking technology
The rapid development of cryptography or other related technologies such as the development of quantum computers, may result in the cracking of the encrypted tokens and the Capverse Ecosystem, which may lead to the loss of $CAP.
The risk of uninsured loss
Unlike the bank accounts or the accounts of other financial institutions, $CAP tokens stored on the BEP20 network are often uninsured. As for the loss under any circumstances, there will be no public organization or individual to cover your loss.
Other risks
In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks (particularly in the Terms and Conditions) associated with your purchase, holding and use of $CAP, including those that the Foundation or the Distributor cannot anticipate. Such risks may further materialize as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Foundation, the Distributor, its affiliates and the Capverse team, as well as understand the overall framework, mission and vision for the Capverse Ecosystem prior to purchasing $CAP.
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