You acknowledge and agree that there are numerous risks associated with acquiring SMTY, holding SMTY, and using SMTY for participation in Smoothy. In the worst scenario, this could lead to the loss of all or part of SMTY held. IF YOU DECIDE TO ACQUIRE SMTY, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:
- Uncertain Regulations and Enforcement Actions
The regulatory status of SMTY and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of digital assets has become a primary target of regulation in all major countries in the world. 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 SMTY and/or Smoothy. Regulatory actions could negatively impact SMTY and/or Smoothy in various ways. The Company, the Distributor (or their respective 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 to mitigate the legal risks as much as possible, the Company and Distributor have worked with the specialist blockchain department at Bayfront Law LLC and obtained a legal opinion on the token distribution, and will be conducting business in accordance with the prevailing market practice.
- Inadequate disclosure of information
As at the date hereof, Smoothy is still under development and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this token documentation contains the most current information relating to Smoothy, it is not absolutely complete and may still be adjusted and updated by the Smoothy team from time to time. The Smoothy team has no ability and obligation to keep holders of SMTY informed of every detail (including development progress and expected milestones) regarding the project to develop Smoothy, hence insufficient information disclosure is inevitable and reasonable.
Various types of decentralised applications and networks are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative networks could be established that utilise the same or similar code and protocol underlying SMTY and/or Smoothy and attempt to re-create similar facilities. Smoothy may be required to compete with these alternative networks, which could negatively impact SMTY and/or Smoothy.
- Loss of Talent
The development of Smoothy greatly depends on the continued co-operation of the existing technical team and expert consultants, who are highly knowledgeable and experienced in their respective sectors. The loss of any member may adversely affect Smoothy or its future development. Further, stability and cohesion within the team is critical to the overall development of Smoothy. There is the possibility that conflict within the team and/or departure of core personnel may occur, resulting in negative influence on the project in the future.
- Failure to develop
There is the risk that the development of Smoothy 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 or SMTY, unforeseen technical difficulties, and shortage of development funds for activities.
- Security weaknesses
Hackers or other malicious groups or organisations may attempt to interfere with SMTY and/or Smoothy in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Company, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of SMTY and/or Smoothy, which could negatively affect SMTY and/or Smoothy. Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to SMTY and/or Smoothy by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.
- Other risks
In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks (as more particularly set out in the Terms and Conditions) associated with your acquisition of, holding and use of SMTY, including those that the Company or the Distributor cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Company, the Distributor, their respective affiliates, and the Smoothy team, as well as understand the overall framework, mission and vision for Smoothy prior to acquiring SMTY.