Legal Disclaimers
Please be aware that the acquisition, retention and use of KYD tokens for participation in the Kyōdō DAO involves a number of inherent risks. In the worst case scenario, you could lose all or a portion of your KYD tokens. BY CHOOSING TO PURCHASE KYD, YOU ACKNOWLEDGE, ACCEPT AND OPENLY ASSUME THE FOLLOWING RISKS:
Uncertain Regulations and Enforcement Actions
The regulatory status of KYD tokens and distributed ledger technology remains ambiguous or unsettled in several jurisdictions. The regulation of virtual currencies has become a major focus around the world. It is unpredictable how, when, or whether regulatory bodies may enforce current regulations or introduce new ones related to this technology and its applications, including KYD tokens. Regulatory actions can negatively impact KYD in various ways. The issuer, the distributor(s) (or their respective affiliates) may cease operations in a jurisdiction if regulatory actions or changes in law or regulation make it illegal or commercially undesirable to operate in that jurisdiction. After consulting with various legal advisors and continuously analyzing the development and legal structure of virtual currencies, a cautious approach will be applied to the distribution of KYD tokens. Therefore, the distribution strategy may be continuously adjusted to minimize legal risks.
Inadequate disclosure of information
As of now, the Kyōdō DAO is still under development, and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be updated and changed frequently. Although this document contains the most recent information about the Kyōdō DAO, it is not absolutely complete and may still be adjusted and updated from time to time. The KYD team has no ability and obligation to keep KYD holders informed of all details (including development progress and expected milestones) regarding the development of the Kyōdō DAO, therefore insufficient disclosure of information is unavoidable and reasonable.
Competitors
The landscape of decentralized applications and networks is expanding rapidly and becoming highly competitive. It is possible that alternate networks could be set up using code and protocols similar to those underlying Kyōdō DAO, and may attempt to duplicate similar features. The Kyōdō DAO could find itself in competition with these emerging networks, a scenario that could adversely affect the value and utility of the KYD token.
Loss of Talent
The progress and future development of the Kyōdō DAO is heavily dependent on the continued collaboration of existing technical staff and expert consultants, who bring considerable knowledge and experience in their respective fields. Losing any member of the team could affect Kyōdō DAO or its future development. Furthermore, maintaining a stable and harmonious team is vital to the holistic development of the Kyōdō DAO. Potential internal conflicts or the departure of key personnel could occur, which could adversely impact the future trajectory of the project.
Failure to develop
The development of the Kyōdō DAO carries inherent risks and may not proceed or materialize as envisioned, due to a number of possible reasons. These may include, but are not limited to, a decline in the prices of digital assets, virtual currencies or KYD tokens, unexpected technical challenges and a lack of sufficient funding for development activities.
Security weaknesses
The Kyōdō DAO could be subject to interference from hackers or other malicious entities in a variety of ways, including but not limited to malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. There is also a risk that vulnerabilities could be introduced into the core infrastructure of the Kyōdō DAO, either intentionally or inadvertently by a third party, a member of the issuing party, distributors or their respective affiliates, which could have a detrimental impact on KYD. Furthermore, the future trajectory of cryptography and security innovations remains highly uncertain. Any advances in these fields, or technical advances in general (such as the advent of quantum computing), could pose unforeseen risks to KYD by undermining the cryptographic consensus mechanism that underpins the blockchain protocol.
Other risks
Furthermore, the potential risks highlighted above do not cover every possible issue. There may be other risks that the issuer, its affiliates, parent organization or the distributor(s) cannot foresee. Such risks may manifest themselves unforeseen or as a combination of the risks already mentioned. Therefore, it is crucial to perform comprehensive due diligence on the issuer, its affiliates, parent organization, the distributor(s), and the Kyōdō team. You should also fully understand the overall framework, mission and vision of the Kyōdō DAO before deciding to acquire KYD tokens.