Important Notice: This Risk Disclosure Statement offers details about the potential risks when using services offered by ARMswap. However, we can’t disclose all the risks involved with virtual assets, so we list the significant ones.

Your digital assets could lose value or be destroyed. Before accessing and using ARMswap’s services, please carefully think whether the risks listed below, along with all other applicable risks, are acceptable to you considering your investing objectives, risk tolerance, financial situation, and prior investment experience.

It is crucial that you decide for yourself whether to access and use the ARMswap Platform and its Services, and before engaging in any virtual asset swapping or bridging, you should consult independent experts for any advice you deem necessary or desired, including financial and/or legal counsel.

It is important to ensure you have the financial resources to cover any risks related to virtual assets and that you closely monitor your positions. There is risk to your capital when using the ARMswap platform. Money you cannot afford to lose shouldn't be invested. When it comes to transactions involving virtual assets, there can be a significant risk of loss.

You may not have access to the investor compensation protection by using ARMswap services.

It is important to consider virtual assets as extremely risky investments and to never invest money that you cannot afford to lose.

To be clear, ARMswap does not offer advice on investments, finances, taxes, or law. Not a single communication or piece of information that you receive from ARMswap is meant to be construed as financial, trading, investment, or other type of advice.

While ARMSP tokens are currently only available to eligible investors (excluding Restricted Countries), regulations might change in the future, potentially granting access to individuals from other currently restricted jurisdictions. Therefore, the risk factors outlined below may encompass specific risks relevant to certain jurisdictions, even though ARMswap currently will not offer ARMSP directly to individuals from such jurisdictions. By participating in the Token purchase, you acknowledge and assume all these risks.

Taking Responsibility:

By using ARMswap platform and its services, you acknowledge your understanding of these risks and take full responsibility for your decisions. Always conduct thorough research before investing in any virtual asset.

The following is a list of risks that could be associated with virtual assets especially in case of ARMswap platform and its ARMSP tokens:

Risk Factors:

1. Wallet Incompatibility:

   Your cryptocurrency wallet must be compatible with receiving, storing, and transferring ARMSP tokens. Incompatible wallet addresses will not be accepted. ARMswap reserves the right to implement further specific wallet requirements for ARMSP tokens purchase at any time.

2. Blockchain Protocol Risks:

   Blockchain is an autonomous public peer-to-peer network that is not under our control. ARMswap disclaims all liability for any failure, mistake, error, or breach that may occur in blockchain or any other network where virtual assets are issued and/or traded. ARMSP tokens utilize blockchain protocols. Therefore, any malfunction, breakdown, abandonment, unintended function, unexpected behavior, or attack on these protocols could adversely affect the tokens, potentially causing them to malfunction or operate in an unforeseen or unintended manner.

   You agree to be bound by any modifications or additions made to the blockchain system, as well as by any applicable laws that might be relevant to the blockchain. Regarding the blockchain's functionality and potential security breaches, we make no express, implied, statutory, or other representations or warranties of any kind.

3. Credential Risks:

   Any unauthorized access to your wallet login credentials or private keys could enable someone to misuse your ARMSP tokens. To minimize this risk, protect your electronic devices from unauthorized access. Best practices recommend storing private keys securely in multiple geographically separated backup locations. You are also responsible for providing ARMswap with the correct wallet address for receiving your new ARMSP tokens. If you provide an incorrect address, ARMswap will not be liable for any lost tokens.

4. Unfavorable Regulatory Action in one or more jurisdictions:

   Blockchain technology and crypto tokens are scrutinized by regulatory bodies globally. The new emerging communication capabilities of blockchain technology may motivate some jurisdictions to implement additional or specific regulations or introduce new ones around blockchain-based applications These regulations may conflict with the current ARMswap platform structure or its smart contract system, and may require significant platform and system modifications, including termination and potential loss of tokens.

   The legal landscape for cryptocurrency tokens and blockchain technology is still murky in many places. It's like trying to read tea leaves about how governments might use existing rules on this new stuff, including the ARMswap platform and its shiny new ARMSP coins. And who knows what surprise laws or regulations they might cook up later? This uncertainty casts a shadow over ARMswap and ARMSP, potentially affecting them in unexpected ways. For example, imagine if they suddenly ruled ARMSP coins were some fancy financial instruments needing special permits or limitations. Yikes! In extreme cases, ARMswap might even have to pack up and leave a country if the rules turn hostile, or if getting the green light to operate becomes too much of a headache. And let's not forget the potential for regulatory roadblocks that could slow down development, restrict trading, or even shut down the whole operation. Basically, navigating this ever-changing legal landscape is like walking a tightrope, and both ARMswap and ARMSP could take a tumble if things get tricky. 

   The world of crypto exchanges, token listings, and initial coin offerings, like the Platform itself, operates under a tangled web of rules set by governments around the globe. These include things like knowing who your customers are ("know your customer" or KYC), keeping dirty money out ("anti-money laundering" or AML), protecting customer data, and making sure platforms are secure.

   The rules and regulations that oversee the cryptocurrency exchanges, tokens listing and trading, initial coin offerings, and our Platform come from a mix of international regulations. These laws cover various areas like "know your customer" rules, measures against money laundering, conducting thorough customer checks, safeguarding privacy and data, looking out for consumer interests, and ensuring data security. It's worth noting that these regulations can change, and new ones might come into play, which could affect how our Platform handles New Tokens. Additionally, users of our Platform might also need to follow specific laws, regulations, and get licenses based on the industry they operate in. If we don't meet these requirements or if regulations become stricter, it could hurt our Platform and the New Tokens, impacting their ability to be used for services within our Platform.

5. Operation of Software Protocols and Smart Contracts:  

   Some of the Virtual Assets available on our platform are governed by software protocols and smart contracts that are not owned or controlled by ARMswap. 

    

   Generally, the underlying protocols are open source meaning anyone can use, copy, change, and share them. This means that (i) how such virtual assets develop and are controlled is outside of ARMswap’s power and (ii) these software protocols can suddenly and greatly change in ways that might strongly affect a given virtual asset's availability, how it can be used or its value. As a result, users may have small, if any, ability to affect what the issuer of the virtual asset does and may lack important information which could impact the value of any specific investment. 

   Any vulnerability or bug in the smart contract code that governs or interacts with a virtual asset, if it appears or is exploited, could negatively affect the virtual asset issued, tracked, or held by the smart contract and could permanently impair the virtual asset's function and value. Smart contracts are what determine a virtual asset's technological features. 

   ARMswap is not responsible for how the underlying protocols and smart contracts operate and ARMswap cannot guarantee their functionality, security, or availability. The protocols and contracts underpinning them are subject to sudden rule changes ("Forks"), and such Forks may significantly affect the value, function, and even the name of the Virtual Asset ARMswap holds for you. If a Fork occurs, ARMswap may temporarily stop some services (with or without notice ahead of time) and ARMswap may (a) adjust its systems or (b) decide not to support (or stop supporting) the Forked protocol or contract entirely. Depending on the circumstances for each event related to any specific Virtual Asset you hold, ARMswap may, but is not required to, adjust your account for a Fork.

6. Oracles:

   Many protocols, including those that depend on oracles to provide the current value of assets held as collateral, depend heavily on oracles and the off-chain data they provide to smart contracts. There are risks associated with using oracles. For instance, centralized oracles are susceptible to attack, manipulation, or malicious activity on the part of the oracle provider in addition to coding errors. These vulnerabilities might still apply to more decentralized oracles. Oracle attacks have been used by unscrupulous parties for financial gain, such as initiating liquidations based on inaccurate data.

    

   Even without error or misconduct, an oracle's provision of certain information may be delayed. This can result in the delivery of stale information to a smart contract, which could have negative effects on its users if market conditions have changed during the delay. ARMswap does not guarantee the functionality, security, or integrity of the oracles and is not liable for how they operate. 

    
7. Risks related to Deposits, Withdrawals, and Transfers:

   It's important to double check the address whenever you deposit, withdraw, or transfer virtual assets. Using the wrong address could mean losing the assets completely. ARMswap only accepts certain virtual currencies as deposits, so make sure the address is valid for the specific assets you want to transfer. A small mistake like sending the wrong type of assets to an address may result in those assets disappearing forever.

8. Risk of Alternative Platforms:

   There's a chance that similar platforms could emerge using the same underlying code and protocol. These alternative platforms might not assign any value to the New Tokens, potentially leading to competition that could harm both the Platform and the New Tokens.

9. Risk of Low Platform Interest:

   There's a possibility that the Platform won't attract a large user base or generate significant public interest in the initial phase. This lack of interest could negatively impact the New Tokens and the Platform.

10. Risk of Unrealized Platform Expectations:

    As the Platform continues to develop, it may undergo substantial changes. This means that expectations about its form, functionality, and participant behavior might not be met for various reasons, such as mistaken assumptions, design changes, or third-party influences. Despite good intentions, the Platform could face malfunctions or inadequate maintenance, potentially affecting the New Tokens' utility and intended usage.

11. Risk of Funding Constraints:

    The Company might not have enough money to fund development or maintain the Platform as planned.

12. Tax Uncertainty:

    There's uncertainty about how the New Tokens will be taxed. It's important for you to get your own tax advice before getting and holding New Tokens, as there could be negative tax effects like withholding taxes, income taxes, and reporting requirements.

13. Risk of Theft and Hacking:

    Smart contracts, software applications, and the Platform may face potential risks from unauthorized access by individuals, groups, or entities seeking to disrupt the Platform or hinder the availability of New Tokens. These risks may include denial-of-service attacks, Sybil attacks, spoofing, smurfing, malware attacks, consensus-based attacks, phishing, or other unconventional methods, whether known or unknown. Successful attacks could lead to the theft or loss of New Tokens, negatively affecting the ongoing development of the Platform and associated projects, as well as limiting the utility or functionality of New Tokens. It is important for you to ensure the reliability and accuracy of relevant websites, systems, and communications. 

    It is important to understand that if your private key or password is lost or stolen, the New Tokens linked to your wallet address may become irretrievable and permanently lost. Unauthorized access to your private key, whether due to compromised login information or other methods, may also lead to the New Tokens being misused. It is crucial to take proper precautions to protect your private key and ensure the security of your New Tokens. Any errors or malfunctions related to the digital wallet or vault you use to receive and store New Tokens, including your own failure to maintain or use the wallet properly, may also lead to the loss of New Tokens, with the Company having no liability for such incidents.

14. Risk of Platform Vulnerability (Cyber/Fraud Risk):

    Due to their nature, virtual assets may be more vulnerable to fraud, account compromise, and cyberattacks. Although ARMswap has developed a security system that is reasonably intended to protect Virtual Assets from loss, theft, and other problems related to hackers and technological attack, this assessment is based on known threats and technology. The security risks to Virtual Assets will probably change as technology advances, and new threats might appear that have never been seen before. Virtual Assets may be vulnerable to theft, loss, destruction, malware attacks, denial of service attacks, coordinated attacks, account takeovers, and other attacks that could result in the loss of assets, to the extent that ARMswap is unable to recognize, mitigate, or stop new security threats.

    Similarly, Targeted security attacks, illegal access, fraud, computer viruses, denial of service attacks, terrorism, firewall or encryption malfunctions, and other security issues could also affect ARMswap's partner services. Cyberattacks that lead to the theft of virtual assets and the hacking of platforms used to trade virtual assets are frequent. It could be difficult for victims to get their losses back from trading platforms or hackers.

    In addition, hackers might try to steal user or financial information, information about the ARMswap platform, or take other harmful actions. Furthermore, the transactions involving Virtual Assets are irreversible, meaning that losses resulting from unintentional or fraudulent transactions might not be recouped.

    It is your obligation to make sure that your login credentials—which include your email address, private keys, username, and password—are kept private and secure. You also bear responsibility for maintaining the security and integrity of any systems—hardware and software—or services—that you use to access the Services, as well as for accessing or using any two-factor authentication hardware or software.

15. Potential Cryptography (Exploitable Breakthroughs) Risks:

    Advancements in cryptography or breakthroughs in technology, like quantum computing, pose threats to cryptocurrencies and our Platform. This could compromise the security of the cryptographic consensus mechanism, leading to potential theft, loss, or reduced functionality of New Tokens. As smart contracts and blockchain technologies are still evolving, there's no guarantee of uninterrupted or error-free token creation. The software may contain defects, vulnerabilities, viruses, or bugs, risking complete loss.

16. Lack of Adoption Risk: New Tokens may lose value if the Platform lacks acceptance and adoption.
17. Dissolution Risk:

    The Platform may become non-viable for various reasons, resulting in dissolution without assurance of receiving benefits from New Tokens.

18. Malfunction Risk:

    The Platform could malfunction, leading to the loss of New Tokens. 

19. Governance Rights Risk:

    New Tokens confer no governance rights, leaving decisions solely at the discretion of the Company, potentially impacting the Platform and New Tokens.

20. Risk of Market Liquidity for New Tokens: 

    The Company is currently unaware of any marketplace for the New Tokens and there may not ever be one. Additionally, there are currently no exchanges available for trading ARMSP Tokens as the tokens are only available for purchase via token.armswap.com. If exchanges do arise, they will most likely be new and their regulatory oversight may not be well understood. This could make them vulnerable to fraud and failure, potentially impacting the value of the New Tokens. New Tokens may experience fluctuations in their value to the extent that any third-party views them as having a monetary worth, such as in the form of a cryptocurrency or regular currency. This value can drastically fluctuate and potentially even decrease to nothing. If, despite what you have told us, you are holding New Tokens as an investment for speculative purposes or with the intention of making a financial gain, you are fully responsible for any associated risks and potential errors. This means that you acknowledge that the value of the New Tokens may increase over time, and you are aware that the Company and its affiliates are not offering them as an investment opportunity.

21. Risk of Incomplete Information:

    Although ARMswap makes every effort to ensure that the information it displays on the Services is accurate, there is always a chance that it won't be complete, accurate, or up to date. You may not have full access to all relevant information about the Company, New Tokens, or the Platform. The Company isn't obligated to update you on Platform progress or provide recommendations for the Token purchase. You're responsible for your decisions regarding the ARMSP coins purchase and can't rely on the Company for complete or up-to-date information.

22. Fiduciary and Legal Relationship Risks:

    As a holder of New ARMSP Tokens, you won't have any fiduciary or partnership relationship with the Company or its affiliates. You won't have management, equity, or similar rights in the Company or its affiliates.

23. Regulatory Compliance Risks:

    Regulation of tokens, cryptocurrencies, blockchain technologies, and exchanges is underdeveloped and subject to rapid evolution and uncertainty. Failure to comply with laws, rules, and regulations, including new or changing ones, could lead to adverse consequences for the Company and New Tokens. Regulatory scrutiny may impact New Token value or Company activities.

24. Operational and Regulatory Remediation Risks:

    The Company has the sole discretion to address operational, legal, or regulatory risks. If deemed infeasible, the Company may halt Platform development, posing a material risk to the continued success of the Platform and New Tokens.

25. Unanticipated Risk:

    As modern technology, cryptographic tokens come with inherent risks. While the potential risks discussed above are significant, there may be additional ones that are unknown to the company. These risks could arise from unexpected combinations or variations of existing risks or the emergence of entirely new ones.