Risk Disclosures and Disclaimers

By using the Platform, you acknowledge you have read and accepted these disclosures. Read this in its entirety before using the Platform.

1. General Risks

1.1 No Investment Advice

The Company is not a broker, intermediary, agent, advisor, or fiduciary. No communication from the Company or through the Platform constitutes financial, investment, legal, or tax advice. You are solely responsible for your financial decisions. You should consult qualified professionals before making any decisions related to digital assets, prediction markets, or tokens.

1.2 Volatility and Loss

Digital Asset values can fluctuate significantly over short periods of time. You may lose your entire investment. Past performance is not indicative of future results. No representation or guarantee is made regarding future value, returns, or price stability of any Digital Asset accessible through the Platform.

1.3 Regulatory Uncertainty

Digital assets, prediction markets, and token launch platforms operate in rapidly evolving regulatory environments. Regulatory changes could materially affect the Platform, Services, or Digital Asset values. New or amended laws, regulations, or enforcement actions in any jurisdiction could restrict or prohibit activities currently permitted on the Platform, require changes to Platform functionality, or affect the legal status of Digital Assets. You are solely responsible for determining compliance with Applicable Laws in your jurisdiction.

1.4 Tax Liability

You are solely responsible for all tax obligations arising from your use of the Platform, including but not limited to income tax, capital gains tax, value-added tax, and any other applicable taxes. The tax treatment of Digital Assets, prediction market positions, and token transactions varies by jurisdiction and is subject to change. The Company does not provide tax advice and does not withhold taxes on your behalf.

2. Blockchain and Smart Contract Risks

2.1 Smart Contract Vulnerabilities

Smart contracts may contain bugs, vulnerabilities, or exploitable flaws that could result in loss of funds. Code is immutable once deployed. The Company engages in security audits but cannot guarantee the absence of vulnerabilities. Even audited smart contracts may contain undiscovered flaws. You interact with smart contracts entirely at your own risk.

2.2 Transaction Irreversibility

Blockchain transactions are irreversible once confirmed on the network. If you send Digital Assets to an incorrect address, interact with a malicious contract, or execute a transaction in error, the Company has no ability to reverse, cancel, or recover the transaction. Errors cannot be corrected by the Company. You are solely responsible for verifying all transaction details before confirming.

2.3 Network Risks

Blockchain networks may experience congestion, delays, forks, reorganisations, 51% attacks, or other disruptions that could affect your ability to transact or the finality of transactions. Gas fees fluctuate based on network demand and may be substantial relative to the value of your transaction. The Company does not control blockchain networks and is not responsible for any losses resulting from network disruptions or fee volatility.

2.4 MEV and Front-Running

Transactions submitted to public blockchain networks may be visible in the mempool prior to confirmation, exposing them to Maximal Extractable Value (MEV) attacks, front-running, and sandwich attacks. Sophisticated actors may exploit pending transactions for profit at your expense. The Protocol does not include built-in MEV protection at the smart contract level. Slippage tolerance parameters are optional and user-configured. The Company is not responsible for losses attributable to MEV extraction or front-running.

2.5 Wallet Security

You are solely responsible for Wallet security, including safeguarding your private keys, seed phrases, and access credentials. Loss of private keys means permanent loss of all assets in that Wallet. The Company does not have access to your Wallet credentials and cannot recover lost funds. You should implement appropriate security measures, including hardware wallets, strong passwords, and two-factor authentication where available.

3. Prediction Market Risks

3.1 Binary Outcome Risk

Contract positions are binary. You lose your entire position if the outcome resolves against you. There are no partial payouts for losing positions. Each prediction market Contract resolves to one of two possible outcomes, and only holders of the winning outcome token receive a payout. You should only risk amounts you can afford to lose entirely.

3.2 Resolution Risk

Contracts are resolved by the Market Owner, a Company-controlled Gnosis Safe multi-signature address. There is no decentralised oracle system. Resolution depends on the Market Owner correctly and timely calling the resolve function on the smart contract. Delays or errors may occur. The Market Owner key is secured via a Gnosis Safe multi-signature arrangement requiring 2 of 3 authorisations. While this multi-signature structure reduces single points of failure, it does not eliminate the risk of incorrect or delayed resolution.

3.3 Emergency Refund

If a market is not resolved within 30 days of expiration, the Emergency Refund mechanism is activated, allowing users to reclaim their collateral on a pro-rata basis. The Emergency Refund may not result in full recovery of your original investment, as the refund amount is calculated based on the proportion of outcome tokens held relative to total collateral in the Contract.

3.4 AMM and Liquidity Risk

The Constant Product Market Maker (CPMM) determines pricing algorithmically based on the ratio of outcome tokens in the liquidity pool. Low liquidity markets may have significant slippage, meaning the price you receive may differ materially from the displayed price. There is no guarantee of liquidity at any price level. Large trades relative to pool size will experience disproportionate price impact.

3.5 Self-Dealing Risk

The architecture of the prediction market smart contracts permits the same address to create a market, hold positions in that market, and resolve it. The Terms of Service prohibit this conduct, but the smart contracts do not technically prevent it on-chain. Exercise appropriate caution when participating in markets, and consider the identity and reputation of the Market Owner.

3.6 Collateral Segregation

Each prediction market Contract holds its own collateral in a separate smart contract. There is no commingling of collateral across markets. However, all markets use the same factory contract for deployment, meaning a vulnerability in the factory contract could theoretically affect multiple markets. The factory contract has been audited, but this does not eliminate the risk of undiscovered vulnerabilities.

4. Token Launchpad and Bonding Curve Token Risks

4.1 No Intrinsic Value

Bonding Curve Tokens have no intrinsic value. They are not backed by any asset, revenue stream, or enterprise. Tokens do not represent equity, ownership, governance rights, dividends, or revenue entitlement in any entity. The price of a Bonding Curve Token is determined solely by the mathematical bonding curve function and market demand. There is no floor price, asset backing, or redemption guarantee.

4.2 Asymmetric Fee Structure

Sell-side transactions on the bonding curve incur a 1% Creator Fee, which is deducted from the sale proceeds and paid to the token creator. Breaking even on a round-trip trade (buying and then selling the same amount of tokens) requires the price to increase by at least the fee amount. This fee structure creates an inherent disadvantage for short-term trading.

4.3 Graduation Risk

When a Bonding Curve Token reaches the Graduation Threshold, it transitions from the bonding curve to a decentralised exchange (DEX) liquidity pool. Post-graduation pricing differs fundamentally from bonding curve dynamics and is determined by open market trading. You may experience sharp price declines, reduced liquidity, or inability to sell at expected prices following graduation. There is no guarantee that any token will reach graduation.

4.4 Creator Risk

Token creators may abandon projects, rug-pull, misrepresent token economics, or manipulate markets. The Company does not vet, endorse, or guarantee the legitimacy, quality, or intentions of any token or token creator. Anyone can create a token through the Token Launchpad. Conduct your own due diligence before purchasing any Bonding Curve Token.

4.5 Market Manipulation

Token markets may be subject to pump-and-dump schemes, wash trading, and coordinated manipulation. The smart contracts do not prevent manipulative trading on-chain. Small-cap tokens with limited liquidity are particularly vulnerable to price manipulation. The Company monitors for suspicious activity but cannot guarantee that markets are free from manipulation.

5. Securities Law Notice

5.1 Potential Securities Classification

Bonding Curve Tokens created via the Token Launchpad may constitute securities or regulated financial instruments in certain jurisdictions. The legal classification of tokens depends on the specific facts and circumstances of each token, including its features, the manner of its distribution, and the expectations of purchasers. The Company makes no determination regarding the legal classification of any token created through the Token Launchpad. You are solely responsible for assessing whether the purchase, sale, or holding of any token complies with Applicable Laws in your jurisdiction.

5.2 United States Law (Howey Test)

Under United States federal securities law, a digital asset may be classified as a security if it satisfies the test established in SEC v. W.J. Howey Co., 328 U.S. 293 (1946). The Howey Test evaluates whether a transaction involves: (i) an investment of money; (ii) in a common enterprise; (iii) with a reasonable expectation of profits; (iv) derived from the efforts of others. Bonding Curve Tokens created through the Token Launchpad may satisfy one or more prongs of the Howey Test. In particular, purchasers may invest money (cryptocurrency) into a common enterprise (the bonding curve pool), with an expectation of profits (token price appreciation), potentially derived from the efforts of others (the token creator or the Platform). The Platform has not registered with the United States Securities and Exchange Commission (SEC) as a securities exchange, broker-dealer, or alternative trading system. No tokens created through the Token Launchpad have been registered under the Securities Act of 1933. The United States and its territories are Prohibited Jurisdictions. Users located in or subject to the jurisdiction of the United States must not use the Platform.

5.3 European Union Law (MiCA and Prospectus Regulation)

The European Union's Markets in Crypto-Assets Regulation (MiCA), Regulation (EU) 2023/1114, establishes a comprehensive regulatory framework for crypto-asset service providers (CASPs). Under MiCA, entities offering crypto-assets to the public or seeking admission to trading must publish a crypto-asset white paper and comply with conduct, disclosure, and prudential requirements. The Company has not obtained authorisation as a CASP under MiCA. Additionally, if any Bonding Curve Token were classified as a transferable security within the meaning of the Prospectus Regulation (EU) 2017/1129, its public offering would require a prospectus approved by a competent authority. No such prospectus has been prepared or approved. The Digital Operational Resilience Act (DORA), Regulation (EU) 2022/2554, imposes additional ICT risk management and incident reporting requirements on financial entities and their critical third-party service providers. Key EU Member States, including but not limited to France, Germany, Italy, Spain, and the Netherlands, are Prohibited Jurisdictions.

5.4 United Kingdom Law (FCA Framework)

The United Kingdom Financial Conduct Authority (FCA) classifies cryptoassets into categories including security tokens, e-money tokens, and unregulated tokens. If a Bonding Curve Token exhibits characteristics of a security token (i.e., it provides rights or obligations similar to specified investments under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001), it would fall within the FCA's regulatory perimeter. The issuance, promotion, and trading of security tokens in the UK requires FCA authorisation. The Company has not obtained FCA authorisation. Additionally, the FCA's financial promotion rules restrict the communication of invitations or inducements to engage in investment activity to UK consumers. The United Kingdom is a Prohibited Jurisdiction.

5.5 Curacao Law

The Company is incorporated in Curacao. Under Curacao's National Ordinance on the Supervision of Securities Markets (Landsverordening toezicht effectenverkeer) and other applicable local securities legislation, the offering of securities to the public may require registration or authorisation from the Central Bank of Curacao and Sint Maarten (CBCS). The Company has assessed its activities under applicable Curacao law and operates the Platform as a technology provider. The Company does not issue, underwrite, or make markets in securities. However, the regulatory framework in Curacao for digital assets and token platforms continues to evolve, and future regulatory developments may affect the Platform's operations or require additional authorisations.

5.6 No Offer or Solicitation

NOTHING ON THIS PLATFORM CONSTITUTES AN OFFER TO SELL, A SOLICITATION OF AN OFFER TO BUY, OR A RECOMMENDATION OF ANY SECURITY, FINANCIAL INSTRUMENT, OR INVESTMENT PRODUCT. THE PLATFORM DOES NOT FACILITATE SECURITIES OFFERINGS. THE COMPANY DOES NOT PROVIDE INVESTMENT ADVISORY, BROKERAGE, OR DEALING SERVICES. NO REGULATORY AUTHORITY HAS REVIEWED, APPROVED, OR ENDORSED THE PLATFORM, ANY TOKEN, OR ANY CONTENT ON THE PLATFORM. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.

5.7 Platform vs. Issuer Liability

The Company provides the technology infrastructure for the Token Launchpad. The Company does not issue, create, sponsor, or endorse any Bonding Curve Token. Each token is created by a third-party token creator who deploys the token through the Platform's smart contracts. The token creator, not the Company, is the issuer of the token for all legal and regulatory purposes. The Company bears no liability for the actions, omissions, representations, or obligations of any token creator.

5.8 Secondary Market Activity

Following graduation, Bonding Curve Tokens may trade on decentralised exchanges (DEXs) and other secondary market venues outside the Platform. The Company has no control over secondary market trading activity. Secondary market trading may be subject to additional regulatory requirements, including securities laws, market conduct rules, and anti-manipulation provisions, depending on the jurisdiction. You are solely responsible for ensuring that your secondary market activity complies with Applicable Laws.

6. Custody Model Disclosure

6.1 User Wallet Control

Users maintain sole control of their Wallets and private keys at all times. The Company does not hold, custody, or have access to user funds or Wallet credentials. All interactions with the Platform are initiated by the user through their own Wallet. The Company cannot freeze, seize, or transfer user funds held in user Wallets.

6.2 Smart Contract Collateral

Collateral deposited into prediction market Contracts and bonding curve pools is held by the respective smart contracts, not by the Company. Smart contract-held collateral is governed by the immutable logic of the deployed code. The Company cannot unilaterally withdraw, redirect, or modify collateral held in smart contracts, except through the designated resolution or emergency refund functions.

6.3 Market Owner Resolution Authority

The Market Owner holds the authority to resolve prediction market Contracts by calling the resolve function on the smart contract. The Market Owner is a Company-controlled address secured via a Gnosis Safe multi-signature arrangement requiring 2 of 3 authorisations. This means that no single individual can unilaterally resolve a market; at least two of three authorised signers must approve the resolution transaction. This multi-signature structure provides a degree of operational security and internal checks, but does not constitute an independent or decentralised resolution mechanism.

6.4 Regulatory Classification

The custody model described above may be subject to varying regulatory classifications depending on the jurisdiction. Under MiCA (EU), the provision of custody and administration of crypto-assets on behalf of clients is a regulated crypto-asset service requiring CASP authorisation. The Company's model, where users maintain control of their own Wallets and smart contracts hold collateral, may not constitute custody under MiCA, but this interpretation has not been confirmed by regulatory authority. Under FinCEN (US) guidance, persons who accept and transmit value in convertible virtual currency may be classified as money transmitters. Under the FCA(UK) framework, the holding of cryptoassets on behalf of customers constitutes a regulated activity. The Company's custody model has been designed to minimise regulatory classification as a custodian, but regulatory authorities may reach different conclusions.

7. Platform and Operational Risks

7.1 Geographic Restrictions

The Platform is not available in Prohibited Jurisdictions, including but not limited to the United States, United Kingdom, France, Germany, Italy, Spain, the Netherlands, and other jurisdictions specified in the Terms of Service. The Company implements geographic restrictions through VPN detection, IP geolocation, and other measures, but these measures are not infallible. You are solely responsible for ensuring that your access to and use of the Platform complies with the laws of your jurisdiction.

7.2 Interface Risk

The Company provides a web-based Interface to access the underlying Protocol. The Interface may contain errors, display inaccurate or delayed data, or experience downtime due to maintenance, technical issues, or external factors. Transactions may fail or produce unexpected results due to Interface errors. The Interface is not the Protocol; the Protocol continues to operate on the blockchain regardless of Interface availability. The Company is not liable for any losses resulting from Interface errors, downtime, or discrepancies between the Interface display and actual on-chain state.

7.3 Third-Party Dependencies

The Platform relies on third-party infrastructure and services, including blockchain networks, RPC providers, hosting services, domain registrars, and wallet providers. The failure, disruption, or compromise of any third-party service may adversely affect the availability, functionality, or security of the Platform. The Company is not responsible for the acts or omissions of third-party service providers.

7.4 Hacking and Cyberattack Risk

Despite the Company's security measures, the Platform, its smart contracts, and its infrastructure may be targeted by hackers, cybercriminals, or malicious actors. Attacks may include but are not limited to smart contract exploits, phishing attacks, DNS hijacking, social engineering, DDoS attacks, and supply chain attacks. The Company cannot guarantee the security of the Platform and is not responsible for any losses resulting from cyberattacks or security breaches.

8. Third-Party and Cross-Platform Risks

8.1 Casino and Gaming Services

The Company or its affiliates may operate casino and gaming services under the Blizz brand or related brands. These casino and gaming services are separate and distinct from the Blizz Markets prediction market and token launchpad platform. Different terms of service, risk profiles, and regulatory frameworks apply. Your use of casino and gaming services is governed by the applicable terms for those services. The Company is not responsible for any losses incurred on casino and gaming platforms, and casino and gaming balances are not interchangeable with Blizz Markets positions.

8.2 Linked Third-Party Services

The Platform may contain links to or integrations with third-party websites, applications, or services. These third-party services are not controlled by the Company, and the Company is not responsible for their content, accuracy, availability, or security. Your use of third-party services is at your own risk and subject to the terms and conditions of those services. The inclusion of a link or integration does not imply endorsement by the Company.

9. Acknowledgment