12.3 Risk factors

The purchase and any other acquisition of 1xBinary and/or SBT Tokens carries with it significant risk. Prior to participation, carefully consider the potential risks and, to the extent necessary, consult a lawyer, accountant, and/or tax professional to evaluate the risk entailed. Also read Terms of Token Sale document.

1xBinary MAKES NO PROMISES OF POSSIBLE GAINS OR RETURNS. YOU CAN POTENTIALLY LOSE ALL YOUR MONEY IF THE MARKET PRICE DROPS TO ZERO.

Risk of Losing Access to 1xBinary and/or SBT Due to Loss of Private Key(s)

1xBinary and SBT Tokens are ERC20 tokens on the Ethereum blockchain. You must access and use them using an ERC20-compliant wallet. It is your responsibility to not lose your Tokens by losing access to the keys which allow access to your wallet and/or allowing malicious third parties to access your keys and/or your wallet. 1xBinaryLAB.COM WILL NOT BE HELD LIABLE FOR ANY LOSS OF TOKENS AND/OR OTHER DAMAGE INCURRED BY YOU AS A RESULT OF THE LOSS OF KEY OR ATTACK ON YOUR WALLET.

Risks Associated with the Ethereum Blockchain

Because 1xBinary and SBT are based on the Ethereum blockchain, any malfunction, breakdown or abandonment of the Ethereum blockchain may have a material adverse effect on 1xBinary Platform and its tokens. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to 1xBinary Platform by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum blockchain.

Risk of Mining Attacks

As with other decentralized cryptographic tokens based on the Ethereum blockchain, 1xBinary and/or SBT are susceptible to attacks by miners in the course of validating transactions on the Ethereum blockchain, including, but not limited, to double-spend attacks, majority mining power attacks, and selfish-mining attacks. Any successful attacks present a risk to the 1xBinary Platform, including, but not limited to, accurate execution and recording of transactions involving 1xBinary and/or SBT.

Risk of Uninsured Losses

Unlike bank accounts or accounts at some other financial institutions, 1xBinary and/or SBT are uninsured unless you specifically obtain private insurance to insure them. Thus, in the event of loss or loss of token value, there is no public insurer or private insurance arranged by us, to offer recourse to you.

Risks Associated with Uncertain Regulations and Enforcement Actions

The regulatory status of ERC-20 Tokens and distributed ledger technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to such technology and its applications. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement changes to law and regulation affecting distributed ledger technology and its applications. Regulatory actions could negatively impact 1xBinary Platform in various ways, including, for purposes of illustration only, through a determination that the purchase, sale, delivery or use of 1xBinary and/or SBT constitutes unlawful activity, or that registration or licensing is required or for some or all of the parties involved in the purchase, sale, delivery or use of 1xBinary and/or SBT. Company 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 necessary regulatory approval(s) to operate in such jurisdiction.

Risks Arising from Taxation

The tax characterization of 1xBinary Token is uncertain. You must seek your own tax advice in connection with purchasing 1xBinary, which may result in adverse tax consequences to you, including withholding taxes, income taxes and tax reporting requirements.

Risk of Competing Platforms

It is possible that alternative platforms could be established that utilize the same open source code underlying the 1xBinary Platform. 1xBinary Platform may compete with these alternative platforms, which could negatively impact the adoption of the 1xBinary Platform.

Risk of Insufficient Interest in 1xBinary Platform Applications

It is possible that 1xBinary Platform will not be used by a large number of individuals, companies and other entities or that there will be limited public interest. Such a lack of use or interest could negatively impact the development of 1xBinary Platform.