ANNEX 2 – RISK FACTORS & DISCLAIMERS
You should carefully consider and evaluate each of the following risk factors and all other information contained in these Terms before deciding to use any of the Services. To the best of our knowledge and belief, the risk factors which are material to you in making an informed judgement to use the Services have been set out below.
RISKS RELATING TO THE ROCKX PLATFORM
We may experience system failures, unplanned interruptions in our network or services, hardware or software defects, security breaches or other causes that could adversely affect our infrastructure network, and/or the RockX Platform
- We are unable to anticipate when there would be occurrences of Network Attacks & Vulnerabilities in the RockX Platform, Supported Staking Network, Supported Staking Application, Supported Tokens, your User Account, or any technology (including but not limited to Staking and smart contract technology) on which we, the RockX Platform, Supported Staking Network, Supported Staking Application, Supported Tokens or the User Account relies or any other network associated with the Services. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. We may not be able to detect such Network Attacks & Vulnerabilities in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession.
- Our Services could be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity downtime, power losses, or even intentional disruptions of our services, such as disruptions caused by software viruses or attacks by unauthorised users, some of which are beyond our control. Although we have taken steps to guard against malicious attacks on our appliances and infrastructure, which are critical for the maintenance of the RockX Platform and the Services, there can be no assurance that Network Attacks & Vulnerabilities will not be attempted in the future, and that any of our enhanced security measures will be effective. We may be prone to attacks on our infrastructure intended to steal information about technology, financial data or user information or take other actions that would be damaging to us and Users. Any significant breach of our security measures or other disruptions resulting in a compromise of the usability, stability and security of our network or Services (including the RockX Platform) may adversely affect the public confidence in our network or Services.
We are dependent in part on the location and data centre facilities of third parties
- Our infrastructure network is in part established on servers which are owned or housed at the location facilities of third parties, and/or servers that it rents at data centre facilities of third parties. If we are unable to maintain such network on commercially reasonable terms or at all, we may be required to transfer our services to a new data centre facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures. Additionally, the third party providers of such facilities may suffer a breach of security as a result of third party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorised access to the data in such servers. As techniques used to obtain unauthorised access to, or to sabotage systems change frequently and generally are not recognised until launched against a target, the RockX Group and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures.
Legality of the Services, Supported Staking Network, Supported Staking Application and/or Supported Tokens may be subject to clarification, implementation or change
- The Applicable Laws in relation to the Services, Supported Staking Network, Supported Staking Application, and/or the Supported Tokens in various jurisdictions may be uncertain and/or subject to clarification, implementation or change. In the event of such clarification, implementation or change, the availability of the Services and/or the Supported Tokens (in connection with the Services) may be adversely affected, including but not limited to the suspension or deactivation of the Services and/or the availability of the Supported Tokens (in connection with the Services).
- We may also have to take measures to comply with such regulations, or have to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come at a substantial cost and may also require substantial modifications to the RockX Platform. This may impact the appeal of the RockX Platform for users and result in decreased usage of the RockX Platform.
- Further, should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the RockX Platform may no longer be commercially viable and we may opt to suspend or discontinue the Services. Further, it is difficult to predict how or whether governments or regulatory authorities may clarify, implement or change any Applicable Laws affecting digital ledger technology and its applications, including the Services. We may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction.
Certain parts of our work and processes may risk being disrupted by new technologies that may emerge
- New technologies may emerge and have a disruptive effect on certain parts of our work and processes. In particular, blockchain and digital ledger technology is rapidly developing and evolving, and technological advancements may render certain or all parts of our work and processes obsolete and ineffective. This may have an adverse effect on the demand for or the availability of the Services, Supported Staking Network, Supported Staking Application, and the Supported Tokens.
The RockX Platform, Supported Staking Network, Supported Staking Application, User Account, and Supported Tokens are exposed to risk of attacks
- While we will make every effort to ensure that RockX Platform is secure, there is no assurance that the RockX Platform, Supported Staking Network, Supported Staking Application, or User Account will not be subject to Network Attacks & Vulnerabilities. Such events may occur as a result of, for example, flaws in programming or source code leading to exploitation or abuse thereof. In such event(s), the Services may be disrupted and the Supported Tokens may even be stolen or diverted to a different address. Unless you specifically obtain private insurance to insure your Supported Tokens, you may not have any recourse as a result of such loss of Supported Tokens.
There may be unanticipated risks arising from the use of the Services
- Staking and technologies involving proof-of-stake and other related consensus protocols are novel, experimental and speculative, and therefore there is significant uncertainty regarding the application of and viability of such technology. In addition to the risks included hereto, there are other risks associated with your use of the Services, including those that we cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the risks discussed hereto.
GENERAL RISKS RELATING TO STAKING AND CRYPTOGRAPHIC TOKENS
There is no assurance of an active or liquid market for Supported Tokens
- There is no assurance that an active or liquid market for Supported Tokens will continue to remain or develop. As such, there is no assurance that your Supported Tokens (including those attributable to Staking Rewards) will have any value. The Supported Tokens are not a currency issued by any central bank or national, supra-national or quasi-national organisation, nor is it backed by any hard assets or other credit. Sale and purchase of Supported Tokens depends on the consensus on its value between the relevant market participants, there is no guarantee as to the liquidity or market price of Supported Tokens to any extent at any time.
The trading price of Supported Tokens may fluctuate
The prices of cryptographic tokens in general tend to be relatively volatile, and can fluctuate significantly over short periods of time. The demand for, and correspondingly the market price of, Supported Tokens may fluctuate significantly and rapidly in response to, among others, the following factors:
- (a) new technical innovations;
- (b) analysts’ speculations, recommendations, perceptions or estimates of a Supported Token’s market price;
- (c) changes in market valuations and token prices of entities with operations similar to that of a particular Supported Token;
- (d) announcements of significant events, for example partnerships, sponsorships, new product developments;
- (e) fluctuations in market prices and trading volume of Supported Tokens on cryptocurrency exchanges;
- (f) the availability of Supported Tokens on other cryptocurrency exchanges; and
- (g) changes in conditions affecting the blockchain or financial technology industry, the general economic conditions or market sentiments, or other events or factors.
Understanding cryptographic token technology requires technical knowledge
- Cryptographic tokens are based on complex often described in exceedingly technical language that may require a comprehensive understanding of applied cryptography and computer science in order to appreciate the inherent risks. The availability of Supported Tokens on the RockX Platform do not indicate approval or disapproval of the underlying technology regarding any Supported Staking Network or Supported Token, and should not be used as a substitute for your own understanding of the risks specific to each Supported Staking Network or Supported Token. We give you no undertaking or warranty as to the suitability of the Supported Staking Network, Supported Staking Application or Supported Tokens for Staking under these Terms and assume no duty in our relations with you. By using the Services, you acknowledge and agree that you have a basic degree of understanding of the operation, functionality, usage, storage, transmission mechanisms, and other material characteristics of digital ledger and blockchain assets, cryptographic tokens including the Supported Tokens, digital ledger and blockchain-based software systems, cryptographic token wallets or other related token storage mechanisms, digital ledger and blockchain technology, proof-of-stake mechanisms, Staking and smart contract technologies.
None of the information available on the Website or made available to you in relation to the use of Services constitutes advice
- None of the information available on the Website or made available to you in relation to the use of Services constitutes any advice, including but not limited to legal, tax, financial or trading advice. If you are in any doubt as to the action you should take, you should consult your legal, financial, tax or other professional advisors.
Digital Asset transfers may not be reversible
- Transactions which have been signed by the transferor and verified on a digital ledger or blockchain network are generally immutable and effectively irreversible. In the event that you send Digital Assets to any other destination other than our designated Digital Asset address/wallet, such Digital Assets may not be returned. None of the RockX Affiliates (including the Company) assumes any responsibility or makes any warranties or undertakings and shall have no obligation to you if any of the foregoing events occur, including but not limited to any responsibility to recover, or aid / assist in the recovery, of such Digital Assets.