Important Notice: This Risk Disclosure Statement offers details about the potential risks when using services offered by ARMswap. However, this document outlines key risks but does not represent an exhaustive list of potential risks. 

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 digital 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 digital assets and that you closely monitor your positions. There is risk to your capital when using the ARMswap platform. Users/Customers/participants should only invest funds they are prepared to lose. Money you cannot afford to lose shouldn't be invested. When it comes to transactions involving digital 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 digital 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. 

ARMswap is not available in restricted countries. Regulatory changes may alter jurisdictional access in the future, potentially exposing users to additional legal and compliance risks. Users are responsible for understanding and complying with the regulations applicable to their location. 

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 digital asset.    

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

Risk Factors:  

1. Wallet Incompatibility 

 Your cryptocurrency wallet must support EVM-compatible chains to receive, store, and transfer digital assets. We only support EVM-compatible wallets; non-EVM wallets are not supported in V1.

2. Blockchain Network 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 digital assets are issued and/or traded. As ARMSP token utilizes blockchain network, any malfunction, breakdown, abandonment, unintended function, unexpected behavior, or attack on these networks could adversely affect the tokens. 

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 the risk of unauthorized access to your wallet, we recommend using hardware wallets or other secure storage solutions. Always ensure that your private keys are stored in a safe and secure location, and never share them with anyone. ARMswap is not responsible for any loss of tokens due to compromised wallet credentials or unauthorized access. 

4. Unfavorable Regulatory Action in one or more jurisdictions 

Blockchain technology and cryptocurrency tokens are subject to evolving regulations that may impact ARMswap’s operations. Compliance requirements could necessitate platform modifications, restrict services, or affect ARMSP token usability. 

Regulatory uncertainties, including potential reclassification or licensing obligations, may limit trading, delay development, or restrict operations in certain regions. Additionally, adherence to AML, KYC, and data security regulations is essential, as non-compliance could affect platform functionality and token accessibility. 

5. Smart Contracts and Third-Party Protocols 

Certain digital assets available on our platform are governed by independent software protocols that are not owned, operated, or controlled by ARMswap. 

As a result: 

      1. The development, governance, and modifications of these protocols occur independently of ARMswap’s authority. 

      2. These protocols may undergo sudden and significant changes that could materially impact a digital asset’s availability, usability, or value. 

Users should be aware that they may have limited or no influence over the actions of the asset issuer and may lack critical information that could affect the value of their investments. 

ARMswap assumes no responsibility for the functionality, security, or availability of underlying protocols and smart contracts. Consequently, ARMswap may, at its sole discretion and with or without prior notice: 

By engaging with digital assets on ARMswap, users acknowledge these risks and agree that ARMswap shall not be held liable for any losses resulting from changes in third-party protocols or smart contracts. 

6. Oracles 

The provision of information by an oracle may be subject to delays, potentially leading to the transmission of outdated data to a smart contract. This delay could adversely impact users if market conditions shift during the interim. ARMswap does not warrant the functionality, security, or reliability of oracles and assumes no liability for their performance or operation.

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 

Users should be aware that similar platforms utilizing the same underlying code and protocol may emerge. These alternative platforms potentially lead to market competition that could impact both the Platform and its associated tokens. 

Additionally, unauthorized or fraudulent websites may attempt to replicate ARMswap’s interface. Users must verify the official URL before accessing the platform, as ARMswap bears no responsibility for any losses incurred due to engagement with unofficial or fraudulent sites. 

9. 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 ARMSP Tokens' utility and intended usage. 

10. Risk of Profit and Loss  

ARMswap facilitates cross-chain swaps and bridging but does not guarantee asset value preservation. Users are fully responsible for any gains or losses resulting from fluctuations in cryptocurrency prices. ARMswap assumes no liability for financial outcomes.

11. Tax Uncertainty

The tax treatment of digital assets varies by jurisdiction and is subject to change. Users are solely responsible for determining their tax obligations, including income, capital gains, and transaction taxes according to their jurisdiction. ARMswap does not provide tax advice and recommends consulting a qualified tax professional to understand the tax implications of using the platform and holding ARMSP tokens. 

12. Protection of Private Keys and Digital Wallets 

It is essential to recognize that the loss or theft of your private key or password may result in the permanent and irreversible loss of Tokens associated with your wallet address. Any unauthorized access to your private key—whether due to compromised login credentials or other security breaches—may lead to the misuse of your Tokens. Therefore, it is imperative to implement stringent security measures to safeguard your private key and protect your Tokens from unauthorized access. 

Additionally, any errors, malfunctions, or mismanagement related to the digital wallet or vault used for receiving and storing Tokens—including failure to maintain or operate the wallet correctly—may also result in Token loss. The Company bears no liability for any such incidents. 

13. Risk of Platform Vulnerability (Cyber/Fraud Risk) 

Digital assets are inherently susceptible to fraud, account compromise, and cyberattacks. While ARMswap has implemented a security framework designed to safeguard digital assets against loss, theft, and other threats posed by hackers and technological attacks, this system is based on currently known risks and existing technology. As technology evolves, security threats to digital assets may also change, potentially giving rise to new, unforeseen risks. Consequently, digital assets remain exposed to threats such as theft, loss, destruction, malware infiltration, denial-of-service attacks, coordinated cyberattacks, and account takeovers—especially in instances where ARMswap is unable to anticipate, mitigate, or prevent emerging security vulnerabilities.

Likewise, security incidents—including targeted cyberattacks, unauthorized access, fraud, computer viruses, denial-of-service attacks, terrorism, and failures in firewall or encryption mechanisms—may also impact ARMswap’s partner services. It is your sole responsibility to ensure the confidentiality and security of your login credentials, including your email address, private keys, username, and password. Additionally, you are responsible for maintaining the security and integrity of the hardware, software, or services used to access ARMswap’s platform, as well as any two-factor authentication mechanisms you employ.

14. Cryptographic and Technological Threats 

Advancements in cryptography and emerging technologies, such as quantum computing, may pose significant risks to cryptocurrencies and our platform. These developments could undermine the security of cryptographic consensus mechanisms, potentially affecting platform operations and leading to partial or complete loss of assets. 

15. Price Volatility Risk 

The value of ARMSP token is not guaranteed and is solely determined by market demand. Price fluctuations may be significant, and there is no assurance of value appreciation. Users should be aware of the inherent volatility of digital assets and conduct their own research before engaging in transactions.

16. Dissolution Risk 

ARMswap reserves the right to discontinue its services at any time for any reason, including but not limited to regulatory changes, market conditions, security risks, or operational challenges. Such discontinuation may affect access to the platform and its functionalities.

17. Governance Rights Risk 

ARMSP token holders do not possess management authority over ARMswap’s operations, policies, or strategic decisions. Users should be aware that their decision-making rights are limited to specific aspects of the platform’s functionality. 

18. Risk of Incomplete Information 

ARMswap reserves the right to withhold certain internal information and does not guarantee that all provided details are complete or up to date. Users may have limited access to information regarding the company or the platform. ARMswap is not obligated to disclose updates or recommendations, and users are responsible for their own decisions.

19. 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. 

20. Unanticipated Risk 

Cryptographic tokens and emerging technologies carry inherent risks, some of which may be unforeseen. In addition to the risks outlined, new or unexpected risks may arise due to evolving market conditions, technological advancements, or unforeseen interactions between existing risks.