Last Updated: November 5, 2024
1. Introduction
Aegis DAO Foundation (“we,” “our,” or “us”) is committed to ensuring transparency in all aspects of our operations. This Risk Disclosure Statement (“Statement”) is intended to inform our users, stakeholders, and investors of the potential risks associated with interacting with our products and services.
The information provided in this Statement is for informational purposes only and should not be construed as financial or legal advice. We urge you to carefully read this Statement and consider these risks before making any decisions related to Aegis DAO Foundation.
2. General Risks
2.1 Market Risk
The value of cryptocurrencies and digital assets can be highly volatile. Market conditions may fluctuate significantly, resulting in a sudden and substantial change in the value of your investments.
2.2 Liquidity Risk
Cryptocurrencies and digital assets may have limited liquidity, making it difficult to buy or sell assets at favorable prices. Market liquidity may vary significantly, affecting your ability to quickly convert assets into cash.
2.3 Regulatory Risk
The regulatory environment surrounding digital assets and decentralized finance (DeFi) is evolving rapidly. Changes in regulation or legal frameworks in any jurisdiction may impact your ability to use our products and services.
2.4 Counterparty Risk
When interacting with third-party custodians, exchanges, or service providers, there is a risk that these entities may default or fail to fulfill their obligations, leading to potential financial losses.
3. Operational Risks
3.1 Technology and Security Risks
Our services rely on complex technology, including smart contracts and blockchain infrastructure, which may be vulnerable to bugs, vulnerabilities, or cyberattacks. Despite our best efforts to secure our systems, there is always a risk of unauthorized access, theft, or other malicious activity.
3.2 Smart Contract Risk
Smart contracts are used to facilitate certain functionalities of our services. Smart contracts are inherently subject to coding errors, vulnerabilities, or unexpected behavior. We conduct audits to reduce risks, but they cannot eliminate all possibilities of failure.
3.3 Custodial Risk
While we utilize secure custodians to store digital assets, there is a risk of loss or misappropriation. Assets held in custody are subject to the operational policies of the custodian, which could affect the safety and availability of these assets.
4. Financial Risks
4.1 Loss of Investment
Participation in our services and products involves significant financial risk. You could lose all or part of your investment, and there is no guarantee of any return on your investment.
4.2 Leverage and Margin Risk
Use of leverage or margin can amplify both gains and losses. Leveraged positions can lead to substantial losses in a short period of time, and you may be required to deposit additional funds to maintain open positions or avoid liquidation.
5. Legal and Regulatory Risks
5.1 Compliance Risk
The legal status of cryptocurrencies and digital assets varies by jurisdiction. Engaging with our products or services may expose you to regulatory actions, such as restrictions or bans, depending on where you reside or operate.
5.2 Taxation Risk
The taxation of digital assets is complex and varies by jurisdiction. You are responsible for understanding and complying with the applicable tax obligations related to your use of our services and the gains or losses you incur.
6. User Responsibilities
It is important that you:
- Conduct Due Diligence: Thoroughly research and understand the risks associated with digital assets and the decentralized financial ecosystem before engaging in any transactions.
- Understand the Technology: Familiarize yourself with how blockchain technology, smart contracts, and DeFi operate to make informed decisions.
- Risk Tolerance: Ensure that you are comfortable with the level of risk involved, considering your financial situation and investment goals.
7. No Guarantees or Warranties
Aegis DAO Foundation makes no guarantees or warranties, express or implied, regarding the future value or performance of digital assets, or the uninterrupted, error-free use of our services. All users interact with our products and services at their own risk.
8. Limitation of Liability
To the fullest extent permitted by law, Aegis DAO Foundation shall not be liable for any direct, indirect, incidental, consequential, or punitive damages arising from your use of our products and services, including but not limited to financial losses or lost profits.
9. Policy Updates
We may update this Risk Disclosure Statement periodically to reflect changes in our practices or changes in applicable laws. Users are encouraged to regularly review this Statement to stay informed of any updates.
10. Contact Information
If you have any questions or require further clarification regarding this Statement, please contact us at:
- Email: [[email protected]]
- Address: Aegis DAO Foundation, Governors Square #5-204, 23 Lime Tree Bay Avenue, Grand Cayman, KY1-1108, Cayman Islands