InfinityBit Token ($IBIT)

RISK FACTORS AND MATERIAL DISCLOSURES

PLEASE READ THE FOLLOWING RISK DISCLOSURE ("DISCLOSURE") CAREFULLY. THIS DISCLOSURE CONTAINS MATERIAL INFORMATION REGARDING THE RISKS ASSOCIATED WITH THE INFINITYBIT TOKEN ("IBIT" OR THE "TOKEN").

MARKET AND VALUE RISKS

1.1. Volatility and Price Fluctuation

The Token is subject to extreme price volatility, and the market price, if any, of the Token may exhibit significant fluctuations due to numerous factors beyond any party's control, including but not limited to:

(a) Trading volumes, or lack thereof
(b) Global market conditions
(c) Technological developments
(d) Regulatory changes
(e) Economic factors
(f) Market participant behavior

1.2. Loss of Value

Token holders are hereby expressly notified that:

(a) The Token may lose all or substantially all of its value
(b) The Token price may reach zero
(c) There is no guarantee of liquidity or market availability
(d) There is no guarantee of price stability
(e) Past performance provides no indication of future value

TECHNICAL AND OPERATIONAL RISKS

2.1. Smart Contract Risks

Notwithstanding any audits or security measures, the Token's underlying smart contract may contain:

(a) Programming errors
(b) Security vulnerabilities
(c) Technical limitations
(d) Unforeseen operational issues

2.2. Blockchain Network Risks

The Token operates on blockchain networks that may experience:

(a) Network congestion
(b) High transaction fees
(c) Processing delays
(d) Network forks
(e) Technical failures
(f) Protocol modifications

2.3. Cybersecurity Risks

Token holders acknowledge the inherent risks of:

(a) Cyber attacks
(b) Hacking attempts
(c) Unauthorized access
(d) Malicious activities
(e) Technical exploits

REGULATORY AND COMPLIANCE RISKS

3.1. Regulatory Environment

Token holders expressly acknowledge that:

(a) Regulatory frameworks for digital tokens are evolving
(b) New regulations may adversely affect the Token
(c) Regulatory actions may impact Token functionality
(d) Compliance requirements may change
(e) Token status under securities laws may be subject to change
(f) Tax treatment may vary by jurisdiction

3.2. Geographic Restrictions

The Token may become subject to restrictions in certain jurisdictions, potentially resulting in:

(a) Limited transferability
(b) Reduced functionality
(c) Regulatory constraints
(d) Legal restrictions

OPERATIONAL AND CUSTODY RISKS

4.1. Private Key Security

Token holders bear sole responsibility for:

(a) Securing private keys
(b) Maintaining wallet access
(c) Implementing security measures
(d) Preventing unauthorized access
(e) Safeguarding against loss

4.2. Technical Operation

The Token may experience interruptions or limitations due to:

(a) Technical maintenance
(b) System upgrades
(c) Network modifications
(d) Protocol updates
(e) Third-party service provider issues

DISCLAIMER OF WARRANTIES

5.1.

NO PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING:

(a) THE TOKEN'S VALUE
(b) THE TOKEN'S MERCHANTABILITY
(c) THE TOKEN'S FITNESS FOR ANY PARTICULAR PURPOSE
(d) THE TOKEN'S TRANSFERABILITY
(e) THE TOKEN'S FUTURE PERFORMANCE OR VALUE
(f) ANY OTHER CHARACTERISTICS OF THE TOKEN

ASSUMPTION OF RISK

BY ACQUIRING, HOLDING, OR USING THE TOKEN, HOLDERS EXPRESSLY ACKNOWLEDGE AND ASSUME ALL RISKS OUTLINED IN THIS DISCLOSURE AND ANY OTHER RISKS ASSOCIATED WITH DIGITAL TOKENS, WHETHER KNOWN OR UNKNOWN, AND ACCEPT THAT:

6.1. They have conducted sufficient due diligence
6.2. They understand the risks involved
6.3. They can bear a complete loss of value
6.4. They are solely responsible for their own actions
6.5. They have consulted appropriate advisors as needed

LIMITATION OF LIABILITY

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NO PARTY SHALL BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING BUT NOT LIMITED TO DAMAGES FOR:

7.1. Loss of profits
7.2. Loss of revenue
7.3. Loss of data
7.4. Loss of use
7.5. Loss of goodwill
7.6. Business interruption
7.7. Any other intangible losses

THE FOREGOING RISK FACTORS DO NOT PURPORT TO BE A COMPLETE ENUMERATION OR EXPLANATION OF THE RISKS INVOLVED. THERE MAY BE ADDITIONAL RISKS THAT ARE NOT PRESENTLY KNOWN OR THAT ARE NOT CURRENTLY BELIEVED TO BE MATERIAL.

BY ACQUIRING, HOLDING, OR USING THE TOKEN, YOU EXPRESSLY ACKNOWLEDGE HAVING READ, UNDERSTOOD, AND AGREED TO THIS DISCLOSURE IN ITS ENTIRETY.

THE TOKEN INVOLVES SUBSTANTIAL RISKS AND UNCERTAINTIES. HOLDERS MUST RELY ON THEIR OWN EXAMINATION OF THE PERTINENT RISKS AND MERITS.

This Disclosure is not investment advice and does not modify any applicable terms, conditions, or agreements relating to the Token.