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18. Risk & Legal Disclaimer

Expertise required

The purchase of the Priority Pass may be effected only through the website www.candao.io (“Candao Site”) and only after connecting the cryptographic wallet. You should not use Candao Site nor purchase the Priority Pass 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 it include nor contain any information or indication that might be considered as a recommendation or that might be used to base any investment decision.

Binding documents

When connecting your wallet through the Candao Site, you agree to be unconditionally bound by Candao Site Terms and Conditions and the Privacy Policy. All these documents can be found on Candato Site.
Please read all these documents carefully through to the end. If you do not agree to be bound by any provision of these documents nor do not understand and fully accept, you should not use Candao Site nor purchase Priority Pass.

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 accessible on Candao Site 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 accessible on Candao Site 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, no Priority Pass will be available and any information accessible on Candao Site 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 and use Candao Site, 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 Candao Site, including without limitation the purchase of the Priority Pass, 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 legislatures or regulatory agencies may make changes to laws and regulations regarding distributed registry technology and its applications. In theory, regulatory action could adversely affect the usage of Candao Site, or the Priority Pass 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 are a 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 will not be a “security” or “transferrable security” in certain jurisdictions. You bear your own legal or financial consequences of the CDOs being considered a “security” or “transferrable security” in your jurisdiction.

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, Priority Pass, CDOs and/or functionalities referred herein (together hereinafter “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 (as described above) but also the alignment of the concept behind the creation of the Products with the needs of its prospective users, the accuracy of marketing tools as well as adverse changes in the competitive environment. Moreover, the success of the Products is highly depending on the time and effort devoted by its key team, while in case of loss, some of the team cannot be easily or at all replaced. 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. Consequently, the functionalities expected to be attached to the Products may turn be inexistent or meaningless and the value of the them may be zero.

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 operation of Candao Site or the capacity of Candao to continue its business.
Those risks may increase with the development of technology, including without limitation quantum computing.

Market risk

You should expect prices and values of the CDOs to fluctuate widely and unpredictable, 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 Site 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 Site 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 Site 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 cryptocurrencies including the CDOs. This could result in the theft, loss, disappearance, destruction or devaluation of the CDOs.

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 Site and/or the Products. This may adversely impact the operation and the market value of the CDOs, 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 may interact with. Any successful attack presents a risk to the digital asset.

Risk of no secondary market

Before the Token Generation Event, no CODs 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 may fluctuate over time. In consequence, you may suffer loss in value of CDOs. The CDO 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 usage of Candao Site, 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 using Candao Site.

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.
Last modified 8mo ago