CTR RISK DISCLOSURES
The following risk disclosures (the "Risk Disclosures") describe material risks associated with acquiring, holding, transferring, or using Citrea tokens ("CTR"). These Risk Disclosures are provided by Citrea Foundation, a foundation company incorporated in the Cayman Islands (the "Foundation"), in connection with the Citrea protocol and ecosystem (the "Protocol").
CTR and the Protocol involve significant technological, legal, and economic risks. Prospective purchasers or recipients should carefully consider the risks described below before acquiring or using CTR.
By acquiring, receiving, or holding CTR, Token Holders acknowledge that they have read and understood these Risk Disclosures and accept the risks associated with digital assets and blockchain technology. Token Holders should not acquire CTR unless they fully understand and are willing to assume the risks described herein.
1. No Ownership, Equity, or Financial Rights
CTR does not represent or confer any ownership interest, equity interest, shareholder rights, membership rights, profit participation, or claim against the assets of the Foundation or any affiliated entity.
CTR is not intended to constitute a share, security, bond, derivative instrument, collective investment scheme participation, or other regulated financial instrument. CTR does not provide any entitlement to dividends, distributions, or revenue generated by the Foundation or the Protocol.
The functionality of CTR is limited to its role within the Protocol and associated network infrastructure.
2. No Guarantee of Value or Liquidity
The value of CTR, if any, may be highly volatile and may fluctuate significantly over time. The Foundation makes no representations regarding the present or future value of CTR.
There is no assurance that markets for CTR will develop or continue to exist. Digital asset trading platforms may choose not to list CTR, or may remove CTR from trading at any time. As a result, CTR may have little or no liquidity.
CTR should not be acquired for speculative or investment purposes.
3. Regulatory and Legal Risks
The legal and regulatory treatment of digital assets remains uncertain in many jurisdictions and may change rapidly. Regulatory authorities, including the U.S. Securities and Exchange Commission, the Financial Conduct Authority, and authorities implementing the MiCA Regulation (EU) 2023/1114, may adopt new laws, regulations, or enforcement actions that affect digital assets or blockchain protocols.
The tax treatment of digital assets is uncertain and varies by jurisdiction, and Token Holders are solely responsible for determining and complying with any tax obligations arising from the acquisition, holding, transfer, or disposition of CTR, including consulting their own legal and tax advisors as appropriate.
FUTURE REGULATORY DEVELOPMENTS MAY RESTRICT THE USE OR TRANSFER OF CTR, IMPOSE COMPLIANCE OBLIGATIONS ON TOKEN HOLDERS OR SERVICE PROVIDERS, AFFECT THE ABILITY OF EXCHANGES OR OTHER PLATFORMS TO LIST OR SUPPORT CTR, OR RESULT IN THE CLASSIFICATION OF CTR UNDER REGULATORY FRAMEWORKS NOT CURRENTLY ANTICIPATED. ANY SUCH DEVELOPMENTS COULD MATERIALLY AND ADVERSELY AFFECT THE UTILITY, TRANSFERABILITY, AVAILABILITY, OR MARKET VALUE OF CTR.
4. Technology and Blockchain Network Risks
The Protocol relies on blockchain networks, cryptographic systems, and smart contracts that may contain bugs, vulnerabilities, or design flaws. Software errors, security exploits, malicious attacks, network disruptions, or governance decisions may result in unintended token transfers, loss or theft of digital assets, or disruption of Protocol functionality. Even where smart contracts are audited, vulnerabilities may remain, and attackers may exploit such weaknesses to manipulate the Protocol or misappropriate assets. In addition, underlying blockchain networks may experience congestion, forks, validator failures, consensus disruptions, or coordinated attacks, any of which could adversely affect the operation, security, or utility of CTR. Because blockchain transactions are generally irreversible, any resulting losses may not be recoverable.
5. Custody, Third Party and Network Risk
Control of CTR requires possession of private keys, and loss of keys or wallet access may result in permanent loss of tokens.
The digital asset ecosystem is also subject to cybersecurity threats, including hacking, phishing, and malware that may compromise wallets, exchanges, or related infrastructure. In addition, digital asset markets are highly volatile and CTR may lose all or substantially all of its value.
The Protocol remains under development and may change or fail to achieve adoption, which could limit CTR's utility. Operation of the ecosystem may also depend on third-party services such as wallets, validators, and exchanges that the Foundation does not control.
6. No Ongoing Development or Support Obligations
The Foundation is not obligated to maintain, develop, operate, or support the Protocol or any associated software, infrastructure, or services for any particular period of time. The development and operation of the Protocol may evolve over time and may involve contributions from various independent participants. Subject to applicable law, the Foundation may reduce, modify, or cease its involvement in Protocol development, maintenance, or related activities at any time.