10. Risk & Disclaimers

This Whitepaper presents work in progress and not a finished product and/or service ready to be provided. The final result may be different.

Some functionalities of the CANDAO ecosystem presented in this Whitepaper, as of the date of its release, are not yet ready and/or operational. We are working towards completing the necessary work and launching the products within the deadlines specified in the Whitepaper, but cannot guarantee that it will happen nor that the functionalities will finally be as presented in this Whitepaper. We may decide to materially alter some of them or even to discontinue their implementation, we may also decide to develop new ones. The main drivers of such decisions will be our view as to whether the needs of the prospective users (as we understand them and/or as they are communicated to us) are properly addressed by the products we develop as well as the limits of our human and financial resources that may affect our capacity to complete the work within the initial deadlines.

Risks associated with the changes of the business model, non-delivery by CANDAO

Although Candao is committed and motivated to deliver the success of the products, $CDOs and/or functionalities of CANDAO ecosystem (together, the “Products”), such success depends on various factors, many of them beyond the control of CANDAO. These include but are not limited to: the changes in the regulatory environment and the approach taken by the regulators, the accuracy of marketing tools as well as adverse changes in the competitive environment. Moreover, the success of the Products is highly dependent on the time and effort devoted by its key team; in case of loss, some of the team cannot be easily or at all replaced by new and equally skilled members. In addition, technical tools available and/or skills of the team (whether internal of CANDAO or outsourced) may not be at required levels. These and other internal and external factors may require CANDAO to change its business model and that of the Products, as designed and anticipated by CANDAO and described herein or even lead to its failure.

Expertise required

Although designed to be user-friendly, the CANDAO ecosystem is based on highly sophisticated technology and requires the know-how and fluency interacting with distributed ledger (blockchain) technology, including the cryptographic wallet. You should not use and interact with the CANDAO ecosystem if you are not experienced in cryptographic tokens and blockchain technology.

No offer of securities, no investment advice

No information in this Whitepaper constitutes an invitation to invest and does not in any way relate to an offer of securities in any jurisdiction. This Whitepaper does not include nor contain any information or indication that might be considered as a recommendation or that might be used to base any investment decision.

No contractual relationship

This Whitepaper is designed for information purposes only and creates no explicit or implicit contractual relationship between CANDAO or any person acting or deemed to be acting on behalf of CANDAO and any other person. The future use of CANDAO platform will be governed by Terms and Conditions, the Privacy Policy and possibly other legal documents that will be released (and then periodically updated) if and when the users gain access to CANDAO functionalities.

No sale to US persons nor to Restricted Jurisdictions

The regulations relating to transactions in crypto assets are often vague and unclear. Moreover, the investment in crypto assets is or may be restricted in certain jurisdictions. Without limitation, this Whitepaper and any information relating to CANDAO released alongside is intended only for persons who are not residents of the United States, People’s Republic of China, Australia, Canada, Hongkong, Japan, Singapore, South Africa or South Korea and who are not in the United States, People’s Republic of China, Australia, Canada, Hongkong, Japan, Singapore or South Africa or are not residents or are not in any other jurisdiction in which the transactions and/or investment in crypto assets is restricted or prohibited (“Restricted Location”).

This Whitepaper and any information relating to CANDAO released alongside does not constitute an offer or a call for any crypto asset in any Restricted Location or any other jurisdiction in which such offer or invitation is not eligible, or to any person if you will submit or invite.

Without limitation, and and all information released on CANDAO is intended only for persons who are neither U.S. person (see below) nor acting of behalf such U.S. person nor located in or otherwise attempting to access to Site from the Restricted Location.

The term “U.S. person” means: (a) any natural person resident in the United States, (b) any partnership or corporation organized or incorporated under the laws of the United States; (c) any estate of which any executor or administrator is a U.S. person; (d) any trust of which any trustee is a U.S. person; (e) any agency or branch of a foreign entity located in the United States; (f) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (g) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (h) any partnership or corporation if: (i) organized or incorporated under the laws of any foreign jurisdiction; and (b) formed by a U.S. person principally for the purpose of investing in securities not registered under the United States Securities Act of 1933, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) promulgated under the United States Securities Act of 1933, ) who are not natural persons, estates or trusts.

In consequence, in order to be able to access this Whitepaper, each user will be required to confirm that he/she (i) is not U.S. person, (ii) is not acting of behalf of any U.S. person nor (iii) is not located in or otherwise attempting to access this website from the Restricted Location.

Risks

The usage of any of the features of CANDAO universe involves various risks. By doing so, you acknowledge that you bear all such risks, including without limitation:

Risks associated with uncertain regulations and enforcement actions.

The regulatory status of blockchain technology, cryptoassets, cryptocurrencies and distributed registries (ledgers) is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether regulatory agencies may apply existing regulations to such technology and its applications. Similarly, it is difficult to predict how and when legislatures or regulatory agencies may introduce new or make changes to existing laws and regulations regarding distributed registry technology and its applications. In theory, regulatory action could adversely affect the usage of CANDAO ecosystem and/or $CDOs in various ways, including, for example, by determining that the purchase, sale and delivery of $CDOs constitutes an unlawful activity or that the $CDOs (or any other token used in the ecosystem) are regulated instrument that requires registration or licensing of those instruments or some or all of the parties involved in their purchase, sale and delivery. Thus, your activity could be impacted by one or more regulatory inquiries or actions, including but not limited to restrictions on the use or possession of cryptoassets and/or cryptocurrencies, which could impede or limit their existence, permissibility of their use and possession, and their value.

No warranty nor guarantee is given that the $CDOs (or indeed any other token generated within CANDAO ecosystem) will not be considered as a “security” or “transferrable security” in certain jurisdictions. You bear your own legal or financial consequences of the $CDOs or such other tokens being considered a “security” or “transferrable security” in your jurisdiction.

Risks of alterations imposed by the regulatory environment

Due to uncertain and continuously changing regulatory environment (explained in more detail in section “Risks associated with uncertain regulations and enforcement actions” above), CANDAO may need to change the way CANDAO ecosystem or any of its functionalities operates or even to disable certain functionalities, at any moment in time, in order to become compliant with the regulations of any relevant jurisdiction.

Risks associated with dependance on technology environment

CANDAO’s business concept and the success of the Products are highly depending on the accuracy and robustness of the technological tools and environment. Without limitation, CANDAO may be subject to attack by hackers or other groups or organizations that may adversely affect the capacity of CANDAO to continue its busines and/or the proper functioning of any CANDAO facility.

Those risks may increase with the development of technology, including without limitation quantum computing.

Market risk

If and when $CDOs are released, you should expect prices and values of the $CDOs to fluctuate widely and in an unpredictable manner, which may even also lead to total loss of money and/or value. There is no deposit insurance available or other protection available for the $CDOs.

Risks associated with the ERC20 Protocol and update of the source code.

The functionalities of CANDAO universe and/or Products are, among others, based on the ERC20 Protocol. Any malfunction, breakdown or abandonment of such protocol may have a material adverse effect on CANDAO universe and/or Products.

The ERC20 source code might be updated, amended, altered or modified from time to time. Nobody can foresee or guarantee the precise result of such update, amendment, alteration or modification. As a result, any update, amendment, alteration or modification could lead to an unexpected or unintended outcome that adversely affects CANDAO universe and/or Products and/or CANDAO’s operation.

Risk of losing access due to loss of private key(s), theft and hacking.

A private key, or a combination of private keys, is necessary to control and dispose of the digital asset. Accordingly, loss of requisite private key(s) will result in loss of digital asset. Moreover, any third party that gains access to such private key(s), including by gaining access to login of a wallet, may be able to misappropriate the digital asset.

Hackers or other groups or organizations may attempt to interfere with the digital asset in any number of ways, including without limitation denial of service attacks, Sybil attacks, spoofing, smurfing, malware attacks, or consensus-based attacks.

Those risks may increase with the development of technology, including without limitation quantum computing.

Risk associated with cryptography.

There are risks associated with cryptography, such as code cracking or technical advances such as the development of quantum computers, could present risks to all cryptoassets, including the $CDOs and/or any other token functioning in the CANDAO universe. This could result in the theft, loss, disappearance, destruction or devaluation of the $CDOs and/or such other tokens.

Risk of “forking”.

The development of “forked” or alternative unofficial platform, which utilize the same base open source code and open source protocol underlying CANDAO universe and/or the Products. This may adversely impact the operation and the market value of the $CDOs and/or any other token functioning in the CANDAO universe, and also may ruin the sustainability of Candao.

Risk of mining attacks.

The ERC20 blockchain is susceptible to mining attacks, including but not limited to double-spend attacks, majority mining power attacks, “selfish-mining” attacks, and race condition attacks. Mining Attacks, as described above, may also target other blockchain networks, with which the $CDOs and/or any other token functioning in the CANDAO universe may interact with. Any successful attack presents a risk to the digital asset.

Risk of no secondary market

Before the Token Generation Event, no $CDOs will be released and it will not be possible to sell, buy or otherwise transfer any $CDO to anyone, against payment or without payment.

Following the Token Generation Event Candao intends to introduce $CDO on a decentralized exchange. Yet, as of the date of this Whitepaper, it is not certain whether and if so, when $CDOs will be admitted to trading on an exchange and whether there will be any demand to support the secondary market price of $CDOs.

Note also that following the Token Generation Event, the $CDOs will be only gradually released in line with the vesting schedule presented in section 9.4. In consequence, only the released part of the $CDOs will be transferrable.

Risk of loss of value and uninsured losses.

The market value of $CDOs and/or any other token functioning in the CANDAO universe may fluctuate over time. In consequence, you may suffer loss in value of $CDOs and/or such other tokens. $CDOs and/or such other tokens will be entirely uninsured and are unlike bank accounts or accounts at some other financial institutions.

Risks associated with Internet transmission.

The problems with Internet-based digital assets, products and websites may appear during the interaction with CANDAO universe, including without limitation the failure of hardware, software, and Internet connections. Candao shall not be responsible for any communication failures, disruptions, errors, distortions or delays that may happen when interacting with CANDAO universe.

Unanticipated risks.

Cryptocurrencies and blockchain technologies are still new and untested technology an in addition to the risks outlined above, there are also unforeseeable risks that may materialize as unanticipated.