Last update: December 2024

PLEASE READ THESE TERMS OF USE BEFORE USING THE WEBSITE.

• Preamble

The content on this website is provided solely for informational and educational purposes and does not purport to be commercial, promotional, financial, legal, or professional advice. Users should not construe any content or information on this website as an offer, recommendation, endorsement, or solicitation to buy, sell, hold, or otherwise engage in any financial or commercial transaction, including in relation to the $CHZ token or any other crypto-asset. Chiliz Interactive Services explicitly disclaims any liability for actions taken by users based on the information presented. We encourage users to seek independent professional advice before making any decisions that may have financial, legal, or other implications.

Crypto-assets are subject to significant risks. Crypto-assets are considered as highly volatile assets and expose their holders to high risks of loss of value. Crypto-assets should only be traded by persons with sufficient knowledge and understanding of the underlying blockchain technology. Past performances are not an indicator of the future performances and you should not dedicate funds that you cannot afford to lose. You should familiarize yourself with the risks associated with transactions on blockchain networks, including but not limited to smart contract vulnerabilities, front-end vulnerabilities, hacks, phishing attacks, social engineering attacks, crypto-assets volatility and transaction irreversibility.

Any reference to the $CHZ token or any other crypto-asset is not directed at or intended for use by any person resident or located in the United States.

• Acceptance of the Terms of Use

These Terms of Use (“Terms of Use”) constitute a binding agreement between you, an individual user or visitor, whether personally or on behalf of an entity (“Visitor”, “User”, “you”, “your”) and Chiliz Interactive Services (“CIS”, “we”, or “us”). CIS is an entity registered under the Laws of the United Arabs Emirates, having its registered office at Office A, RAK DAO business Centre, RAK BANK ROC Office, Ground Floor, Al Rifaa, Sheikh Mohammed Bin Zayed Road, Ras Al Khaimah, United Arab Emirates.

The following terms and conditions, together with any documents they expressly incorporate by reference (collectively, the “Terms”), govern your access to and use of the https://www.chiliz.com website as well as any other media form, media channel, or mobile website related, linked, or otherwise connected thereto, published by CIS, including, but not limited to, any content, functionality, and services offered on or through these channels (collectively, the “Website”). Please read these Terms carefully before you start to use the Website. By accessing or using the Website, you acknowledge that you have read, understood, and agree to be bound and abide by these Terms in addition to:

• our Privacy Policy, incorporated herein by reference; and
• our Cookie Policy, incorporated herein by reference.

If you do not agree to these Terms, you must not access or use the Website.

• Changes to the Terms of Use

We may revise and update these Terms at any time and for any reason, at our sole discretion. All changes are effective immediately, and we will alert you about any changes by updating the “Last updated” date indicated in the header of these Terms. Users waive any right to receive specific notice of each such change. It is your responsibility to periodically review these Terms to stay informed of updates.

You will be subject to, and will be deemed to have been made aware of and to have accepted, the changes in any revised Terms by your continued use of the Website after the date such revised Terms are posted. Supplemental terms and conditions or documents that may be posted on the Website from time to time are hereby expressly incorporated herein by reference.

• Website Purpose

CIS purpose is to help fund and foster the development, growth, and raise awareness of the potential offered by blockchain technology and the Chiliz ecosystem built around the Chiliz Chain. The Chiliz Chain is an open, permissionless, decentralized Layer 1 EVM-compatible Proof-of-Stake-Authority protocol initially designed to support the Chiliz ecosystem. The Chiliz ecosystem is a decentralized, pioneering blockchain initiative initially focused on enhancing fan engagement in sports and entertainment.

• Acknowledgements

Visitors and Users of the Website are hereby informed that CIS holds no role as the issuer of any crypto-asset associated with the Chiliz ecosystem, nor does it function as the developer of the Chiliz Chain. Furthermore, CIS does not occupy any leadership or directive position within the Chiliz ecosystem, which is a collaborative and decentralized project propelled by the contributions of various independent actors.

While CIS endeavors to support and encourage the development and expansion of the Chiliz ecosystem through its actions, it does not exert control over or assume responsibility for the activities, decisions, or strategies implemented by the diverse participants within the Chiliz ecosystem. Users should, therefore, adjust their expectations accordingly and conduct their due diligence when engaging with the Chiliz ecosystem or making investment decisions based on information obtained through the Website or its associated channels.

Visitors and Users of the Website acknowledge that: (1) CIS is not the issuer of any crypto-asset; (2) CIS is not the developer of the Chiliz Chain; (3) CIS is not the head, director, or the driving force of the Chiliz ecosystem; and (4) the Chiliz ecosystem is a decentralized project developed by many actors at the same time, sometimes in collaboration, sometimes on their own. CIS does not direct these actors, but through its actions hopes to foster the growth of the Chiliz ecosystem. 

• Who May Use the Website

The Website is intended for personal use only. While users of the Website are not required to be at least 18 years old, You acknowledge and accept that age restrictions may apply on third-party interfaces accessible via links provided on the Website, amongst other restrictions. You are solely responsible to ensure Your access and use of third-party interfaces comply with the terms and conditions applicable on the interface. If you use the Website on behalf of another person or entity, You acknowledge that: (a) all references to “you” throughout these Terms will include that person or entity; and (b) you represent that you are authorized to accept these Terms on that person’s or entity’s behalf.

The information provided on the Website is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Accordingly, those persons who choose to access the Website from other locations do so on their own initiative and are solely responsible for compliance with local laws, if and to the extent local laws are applicable.

You represent and warrant that you are not, and for the duration of the time you use the Website, will NOT be (a) the subject of economic or trade sanctions administered or enforced by any governmental authority or otherwise designated on any list of prohibited or restricted parties; (b) in contravention of any laws and regulations pertaining to anti-money laundering or terrorist financing; (c) included on the List of Specially Designated Nationals and Blocked Persons maintained by the US Treasury Department’s Office of Foreign Assets Control (OFAC) or on any list pursuant to European Union (EU) and/or United Kingdom (UK) regulations; or (d) operationally based or domiciled in a country or territory in which sanctions imposed by the United Nations (whether through the Security Council or otherwise), OFAC, the EU and/or the UK apply, or otherwise pursuant to sanctions imposed by the United Nations, OFAC, EU, or UK, and in any case (e) residing within the territory of the United States. If at any point the above is no longer true, then you must immediately cease using the Website.

You acknowledge and agree that you have the financial and technical sophistication to properly use and interact with the Website and that you understand the inherent risks of blockchain technology. You understand that transacting in crypto-assets and applications utilizing crypto-assets is risky and may subject you to cyberattack, loss of crypto-assets, unknown exploits, smart contract risks, governance attacks, and other risks related to blockchain transactions. You also understand that transactions executed and settled via smart contracts are not reversible and you may not have recourse in the event of a malicious, fraudulent, or inadvertent transaction.

• Reliance on Information Posted

The information presented on or through the Website is made available solely for general information purposes. We do not warrant the accuracy, completeness or usefulness of this information. Any reliance you place on such information is strictly at your own risk. Before engaging in any crypto-asset activity, you are strongly encouraged to do your own research. We disclaim all liability and responsibility arising from any reliance placed on such materials by you or any other visitor to the Website, or by anyone who may be informed of any of its contents.

The Website may include content provided by third parties, including materials provided by other users, bloggers and third-party licensors, syndicators, aggregators, and/or reporting services. All statements and/or opinions expressed in these materials, and all articles and responses to questions and other content, other than the content provided by the CIS, are solely the opinions and the responsibility of the person or entity providing those materials. These materials do not necessarily reflect the opinion of the CIS. We are not responsible, or liable to you or any third party, for the content or accuracy of any materials provided by any third parties.

• Changes to the Website

There may be information on the Website that is out of date or contains typographical errors, inaccuracies, or omissions. We reserve the right – but not the obligation – to update any information or correct any errors, inaccuracies, or omissions and to change or update the information on the Website at any time, without prior notice. CIS does not warrant that the Website content will be uninterrupted, error free or free of computer viruses, contaminants or other harmful items.

• Website Management

We reserve the right to withdraw or amend the Website, and any service or material we provide on the Website, in our sole discretion without notice. We do not guarantee that our Website or any content available on the Website will always be available. We will not be liable if, for any reason, all or any part of the Website is unavailable at any time or for any period. CIS may restrict access to some parts of the Website, or to the entire Website, to users, at any time and for any reason, at our sole discretion.

We reserve the right to restrict or deny access to the Website, including by geo-blocking or blocking certain IP addresses, to any persons for any reason, including but not limited to breach of any representation or warranty introduced in these Terms or resulting from any applicable law or regulation. If we terminate or suspend your access to the Website for any reason, you are prohibited from attempting to access the Website under your name, a fake or borrowed name, or the name of any third-party, even if you may be acting on behalf of the third-party.

We reserve the right, but not the obligation, to: (1) monitor the Website for violations of these Terms; (2) take appropriate legal action against anyone who, in our sole discretion, violates the law or these Terms, including without limitation, reporting such user to law enforcement authorities; and (3) otherwise manage the Website in a manner designed to protect our rights and property and to facilitate the proper functioning of the Website.

• Users Responsibility

You are responsible for making all arrangements necessary for you to have access to the Website; and ensuring that all persons who access the Website through your internet connection are aware of these Terms of Use and comply with them.

To access the Website or some of the resources it offers, you may be asked to provide certain registration details or other information. It is a condition of your use of the Website that all the information you provide on the Website is correct, current, and complete. You agree that all information you provide to use the Website, including, but not limited to, using any interactive features on the Website, is governed by our Privacy Policy, and you consent to all actions we may take with respect to your information that are consistent with our Privacy Policy.

You should use particular caution when inputting personal information onto the Website on a public or shared computer so that others are not able to view or record your personal information.

• Prohibited Uses

You may use the Website only for lawful purposes and in accordance with these Terms of Use. You agree not to use the Website:

• In any way that violates any applicable federal, state, local, or international law or regulation (including, without limitation, any laws regarding the export of data or software to and from the US or other countries).
• To impersonate or attempt to impersonate CIS or any of its affiliates, Chiliz ecosystem developers/contributors/participants and any employee thereof, any other user, or any other person or entity (including, without limitation, by using e-mail addresses or screen names associated with any of the foregoing).
• Systematically retrieve data or other content from the Website to create or compile, directly or indirectly, a collection, compilation, database, or directory without written permission from us.
• To engage in any other conduct that restricts or inhibits anyone’s use or enjoyment of the Website, or which, as determined by us, may harm CIS or users of the Website or expose them to liability.
• To circumvent, disable, or otherwise interfere with security-related features of the Website, including features that prevent or restrict the use or copying of any content or enforce limitations on the use of the Website and/or the content contained therein.
• To engage in unauthorized framing of or linking to the Website.
• To trick, defraud, or mislead us and other users, especially in any attempt to learn sensitive account information such as user passwords.
• To make improper use of our support services or submit false reports of abuse or misconduct.
• To engage in any automated use of the system, such as using scripts to send comments or messages, or using any data mining, robots, or similar data gathering and extraction tools.
• To interfere with, disrupt, or create an undue burden on the Website or the networks or services connected to the Website.
• To send, knowingly receive, upload, download, use, or re-use any material which does not comply with these Terms of Use.
• To use any information obtained from the Website in order to harass, abuse, or harm another person.
• To use the Service as part of any effort to compete with us or otherwise use the Service and/or the content for any revenue-generating endeavor or commercial enterprise.
• To attempt to bypass any measures of the Website designed to prevent or restrict access to the Website, or any portion of the Website.
• To decipher, decompile, disassemble, or reverse engineer any of the software comprising or in any way making up a part of the Website.
• To delete the copyright or other proprietary rights notice from any content.
• To reproduce, copy, imitate, transform, distribute, make available to the public, or otherwise use, by any means or procedure, in whole or in part, the content subject to intellectual property rights, including any trademarks, of the Chiliz Group or any third-party within the Chiliz ecosystem without having been granted the required authorization.
• To copy or adapt the Site’s software, including but not limited to Flash, PHP, HTML, JavaScript, or other code.
• To upload or transmit (or attempt to upload or to transmit) viruses, Trojan horses, or other material that interfere with any party’s uninterrupted use and enjoyment of the Website or modifies, impairs, disrupts, alters, or interferes with the use, features, functions, operation, or maintenance of the Website.
• To attempt to gain unauthorized access to, interfere with, damage, or disrupt any parts of the Website, the server(s) on which the Website is stored, or any server, computer or database connected to the Website.
• Attack the Website via a denial-of-service attack or a distributed denial-of-service attack; or attempt to interfere with the proper working of the Website.
• To use, launch, develop, or distribute any automated system, including without limitation, any spider, robot, cheat utility, scraper, or offline reader that accesses the Website, or using or launching any unauthorized script or other software.
• To copy, reproduce, distribute, publicly perform or publicly display all or portions of our Website, except as expressly permitted by us.
• To infringe any patent, trademark, trade secret, copyright or other intellectual or proprietary right of CIS.
• For any unauthorized use of the Website, including collecting usernames and/or email addresses of users by electronic or other means for the purpose of sending unsolicited email, or creating user accounts by automated means or under false pretenses.

• Electronic Communications

You agree and consent to receive electronic communications from us regarding the Website and any content available on the Website, including, but not limited to: (a) these Terms, and amendments thereto; (b) the Privacy Policy, and amendments thereto; (c) the Cookie Policy, and amendments thereto; (d) legal and regulatory disclosures and communications; and (e) customer service communications. We may provide electronic communications to you by making them accessible on the Website or through email, including via “hyperlinks” provided online and in emails.

Visiting the Website, sending us emails, and completing online forms constitute electronic communications. You consent to receive electronic communications, and you agree that all agreements, notices, disclosures, and other communications we provide to you electronically, via email and/or on the Website, satisfy any legal requirement that such communication be in writing. You may withdraw your consent to receive electronic communications by clicking on the ‘Unsubscribe’ link in the email or by contacting us at contact@chiliz.com. We will process your request to withdraw your consent to receive electronic communications in a reasonable time.

You may provide feedback to us or otherwise submit questions and inquiries through some parts of the Website. We welcome feedback and inquiries relating to improvements or updates to the Website, and we will make our best efforts to review your feedback. However, we are not obligated to do so nor are we obligated to release any modifications or improvements you submit to us based on your feedback.

• User Data

We will maintain certain data that you transmit to the Website for the purpose of managing the performance of the Website, as well as data relating to your use of the Website. Although we perform regular routine backups of data, you are solely responsible for all data that you transmit or that relates to any activity you have undertaken using the Website. You agree that we shall have no liability to you for any loss or corruption of any such data, and you hereby waive any right of action against us arising from any such loss or corruption of such data.

All information we collect on the Website is subject to our Privacy Policy. By using the Website, you consent to all actions that may be taken by us with respect to your information in compliance with the Privacy Policy.

• Intellectual Property Rights

The Website and their entire contents, features, and functionality (including but not limited to all information, domain names, software, text, displays, images, video and audio, and the design, selection, and arrangement thereof) [hereinafter, the “Contents”] are owned by CIS, its licensors or other providers of such material and are protected by copyright, trademark, patent, trade secret, and other intellectual property or proprietary rights laws.

Therefore, the reproduction, copying, imitation, transformation, distribution, making available to the public and, in general, the mere use and any other form of exploitation, by any means or procedure, in whole or in part of the Contents of the Website is strictly prohibited without our prior written permission which may be obtained by emailing contact@chiliz.com. However, this does not mean that CIS, its licensors or other providers are obliged to grant such authorisation.

Reference to any products, services, processes or other information by trade name, trademark, manufacturer, supplier or otherwise does not constitute or imply endorsement, sponsorship or recommendation by us.

• Links from the Website

If the Website contains links to other sites and resources provided by third parties, these links are provided for your convenience only. This includes links contained in advertisements, including banner advertisements and sponsored links. We have no control over the contents of those sites or resources, and accept no responsibility for them or for any loss or damage that may arise from your use of them. If you decide to access any of the third-party websites and/or interfaces linked to the Website, you do so at your own risk and subject to the terms and conditions of use of such websites and/or interfaces. We reserve the right to withdraw linking permission without notice.

• Entire Agreement

The Terms of Use, our Privacy Policy, our Cookie Policy, and any other policies incorporated herein by reference, constitute the sole and entire agreement between you and CIS with respect to the Website and supersede all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to the Website.

• Governing Law and Jurisdiction

All matters relating to the Website and these Terms of Use, and any dispute or claim arising therefrom or related thereto (in each case, including non-contractual disputes or claims), shall be governed by and construed in accordance with the laws of the United Arab Emirates, without giving effect to any choice or conflict of law provision or rule (whether of the United Arab Emirates or any other jurisdiction).

Any legal suit, action, or proceeding arising out of, or related to, these Terms of Use or the Website shall be instituted exclusively in the courts of the Emirate of Ras Al Khaimah, United Arab Emirates, although we retain the right to bring any suit, action, or proceeding against you for breach of these Terms of Use in your country of residence or any other relevant country. You waive any and all objections to the exercise of jurisdiction over you by such courts and to venue in such courts.

• Indemnification

You agree to defend, indemnify, and hold harmless CIS, its affiliates, licensors, and service providers, and its and their respective officers, directors, employees, contractors, agents, licensors, suppliers, and successors from and against any claims, liabilities, damages, judgments, awards, losses, costs, expenses, or fees (including reasonable attorneys’ fees) arising out of or relating to your violation of these Terms of Use or your use of the Websites, including, but not limited to, any use of the Websites’ content, services and products, intellectual property rights, other than as expressly authorized in these Terms of Use or your use of any information obtained from the Websites.

Notwithstanding the foregoing, we reserve the right, at your expense, to assume the exclusive defense and control of any matter for which you are required to indemnify us, and you agree to cooperate, at your expense, with our defense of such claims. We will use reasonable efforts to notify you of any such claim, action, or proceeding which is subject to this indemnification upon becoming aware of it.

• Waiver and Severability

No waiver by CIS of any term or condition set forth in these Terms of Use shall be deemed a further or continuing waiver of such term or condition or a waiver of any other term or condition, and any failure of CIS to assert a right or provision under these Terms of Use shall not constitute a waiver of such right or provision.

If any provision of these Terms of Use is held by a court or other tribunal of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such provision shall be eliminated or limited to the minimum extent such that the remaining provisions of the Terms of Use will continue in full force and effect.

• Disclaimer of Warranties

You understand that we cannot and do not guarantee or warrant that files available for downloading from the internet or the Websites will be free of viruses or other destructive code. You are responsible for implementing sufficient procedures and checkpoints to satisfy your particular requirements for anti-virus protection and accuracy of data input and output, and for maintaining a means external to our site for any reconstruction of any lost data. WE WILL NOT BE LIABLE FOR ANY LOSS OR DAMAGE CAUSED BY A DISTRIBUTED DENIAL-OF-SERVICE ATTACK, VIRUSES, OR OTHER TECHNOLOGICALLY HARMFUL MATERIAL THAT MAY INFECT YOUR COMPUTER EQUIPMENT, COMPUTER PROGRAMS, DATA, OR OTHER PROPRIETARY MATERIAL DUE TO YOUR USE OF THE WEBSITES OR ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITES OR TO YOUR DOWNLOADING OF ANY MATERIAL POSTED ON IT, OR ON ANY WEBSITES LINKED TO IT.

YOUR USE OF THE WEBSITES, THEIR CONTENT AND ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITES IS AT YOUR OWN RISK. THE WEBSITES, THEIR CONTENT AND ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITES ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, WITHOUT ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. NEITHER CIS NOR ANY PERSON ASSOCIATED WITH CIS MAKES ANY WARRANTY OR REPRESENTATION WITH RESPECT TO THE COMPLETENESS, SECURITY, RELIABILITY, QUALITY, ACCURACY, OR AVAILABILITY OF THE WEBSITES. WITHOUT LIMITING THE FOREGOING, NEITHER CIS NOR ANYONE ASSOCIATED WITH CIS REPRESENTS OR WARRANTS THAT THE WEBSITES, THEIR CONTENT OR ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITES WILL BE ACCURATE, RELIABLE, ERROR-FREE OR UNINTERRUPTED, THAT DEFECTS WILL BE CORRECTED, THAT THE WEBSITES OR THE SERVER(S) THAT MAKES THEM AVAILABLE ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS OR THAT THE WEBSITES OR ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITES WILL OTHERWISE MEET YOUR NEEDS OR EXPECTATIONS.

CIS HEREBY DISCLAIMS ALL WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, AND FITNESS FOR PARTICULAR PURPOSE.

SOME JURISDICTIONS DO NOT ALLOW EXCLUSION OF WARRANTIES OR LIMITATIONS ON THE DURATION OF IMPLIED WARRANTIES, SO THE ABOVE DISCLAIMERS MAY NOT APPLY TO YOU IN THEIR ENTIRETIES, BUT WILL APPLY TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

• Limitation on Liability

IN NO EVENT WILL CIS, ITS AFFILIATES OR THEIR LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, OFFICERS, OR DIRECTORS BE LIABLE FOR DAMAGES OF ANY KIND, UNDER ANY LEGAL THEORY, ARISING OUT OF OR IN CONNECTION WITH YOUR USE, OR INABILITY TO USE, THE WEBSITES, ANY WEBSITES LINKED TO THEM, ANY CONTENT ON THE WEBSITES OR SUCH OTHER WEBSITES OR ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITES OR SUCH OTHER WEBSITES, INCLUDING ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO, PERSONAL INJURY, PAIN AND SUFFERING, EMOTIONAL DISTRESS, LOSS OF REVENUE, LOSS OF ASSETS, LOSS OF PROFITS, LOSS OF BUSINESS OR ANTICIPATED SAVINGS, LOSS OF USE, LOSS OF GOODWILL, LOSS OF DATA, AND WHETHER CAUSED BY TORT (INCLUDING NEGLIGENCE), BREACH OF CONTRACT OR OTHERWISE, EVEN IF FORESEEABLE. THE FOREGOING DOES NOT AFFECT ANY LIABILITY WHICH CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW WHICH MAY INCLUDE FRAUD.

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, CIS, AND ITS AFFILIATES, MAKE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE PROPER FUNCTIONALITY, PERFORMANCE, SECURITY, AVAILABILITY, OR ERROR-FREE OPERATION OF THE CHILIZ CHAIN. CIS, AND ITS AFFILIATES, DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, RELATED TO ANY DECENTRALISED APPLICATIONS (“dApps”) OPERATING ON OR INTERACTING WITH THE CHILIZ CHAIN, INCLUDING BUT NOT LIMITED TO THOSE CONCERNING STAKING, GOVERNANCE, OR ANY OTHER ASSOCIATED FEATURES. USERS ACKNOWLEDGE AND AGREE THAT THE OPERATION AND PERFORMANCE OF SUCH DAPPS ARE INDEPENDENT OF CIS AND ITS AFFILIATES, AND CIS AND ITS AFFILIATES HAVE NO CONTROL OR RESPONSIBILITY OVER THEIR FUNCTIONALITY, OUTCOMES, OR AVAILABILITY. USERS ASSUME ALL RISKS ASSOCIATED WITH THE USE OF THESE FEATURES, INCLUDING BUT NOT LIMITED TO TECHNICAL MALFUNCTIONS, DATA LOSS, SECURITY VULNERABILITIES, OR OTHER POTENTIAL DAMAGES. UNDER NO CIRCUMSTANCES SHALL CIS, OR ITS AFFILIATES, BE LIABLE FOR ANY DAMAGES, LOSSES, OR CLAIMS ARISING FROM OR IN CONNECTION WITH THE MALFUNCTION, DOWNTIME, OR FAILURE OF THE CHILIZ CHAIN OR ANY DAPPS; ERRORS, BUGS, OR VULNERABILITIES IN STAKING, GOVERNANCE, OR OTHER FEATURES; OR THE INABILITY TO ACCESS OR INTERACT WITH THE CHILIZ CHAIN OR DAPPS.

• Risks Disclaimer

Crypto-assets and related services present inherent risks and require sufficient knowledge. In case of doubt, or if you do not properly understand the functioning of blockchains, crypto-assets and digital wallets, you should refrain from using such services and from buying or holding any crypto-assets. This section introduces a non-exhaustive disclosure of the main risk factors which you need to be aware of in relation to crypto-assets:

1. General Suitability

Prior to engaging with any crypto-assets and related services, we encourage you to complete your own research and assess your suitability of interacting with or investing in crypto-assets.

Engaging in crypto-asset services and activities may represent its own set of dedicated risks, for instance staking, which you can learn more about here . Always complement such published information by doing your own research before engaging.

It is important that you understand the functioning of distributed ledger technology (blockchain) and verify any information you may find in relation to the crypto-assets with which you want to interact.

2. Technological Risk

Transactions in crypto-assets and use of digital wallets are subject to significant technological risks, including but not limited to errors or security defects associated with the Blockchain network through which crypto-assets are stored and transferred, thefts or losses of credentials to access your digital wallet, attacks from hackers and other criminal organizations; all of which may result in the loss of data and crypto-assets. 

3. Economic Risk

Crypto-assets’ value is not inherently guaranteed and depends on unregulated markets, in which fraudulent acts may occur to a greater extent than in traditional finance. Crypto-assets are exposed to market volatility and high risks of loss of value. Past performances are not an indicator of future performances and you should never invest amounts that you can’t afford to lose.  

4. Risk of losing access to your crypto-assets

A digital wallet is necessary to acquire, hold, and dispose of any crypto-assets. You hereby understand that you are responsible for setting up a digital wallet with third-party providers in order to hold such assets and that you are also responsible for implementing reasonable measures for securing your digital wallet. Therefore, the loss of the requisite private key(s) associated with the digital wallet holding the crypto-assets will result in the loss of such assets. Additionally, any third-party that gains access to such private key(s), including by gaining access to login credentials of the digital wallet that you use, may be able to misappropriate your crypto-assets. 

By choosing to store your crypto assets in a custodial wallet or service, you acknowledge and accept the inherent risks associated with such custody solutions. Custodial services hold the private keys to access your digital wallet and crypto-assets held thereof, meaning you rely on their security measures, operational integrity, and continuity to access and manage your crypto-assets. In the event of a security breach, insolvency, or regulatory actions against the custodian service, your assets may become inaccessible or lost. It is crucial to thoroughly assess the reputation, security practices, and terms of service of any custodial service provider before entrusting them with your crypto-assets. Remember, the safety of your crypto-assets in a custodial arrangement is subject to the risks and vulnerabilities of the chosen custodial service

Any errors or malfunctions caused by or otherwise related to the digital wallet that you choose to receive and hold crypto-assets, including your own failure to properly maintain or use such digital wallet, or caused as a result of the choice of third-party service providers for the digital wallet, may also result in the loss of crypto-assets. 

5. 51% Attacks

By engaging with blockchain technology, you acknowledge the theoretical risk of a 51% attack, wherein an entity or group of persons gains majority control of the network’s mining power, potentially compromising the integrity and security of the blockchain. Such control could allow for the alteration of transactions, double-spending, and disruptions in the consensus process. While measures are in place on many networks and platforms to mitigate this risk, no blockchain can be considered entirely immune. You should be aware of this vulnerability and consider the security track record and mechanisms of any blockchain network before engaging in transactions or investments.

In the context of a Proof-of-Stake-Authority (PoSA) blockchain such as the Chiliz Chain, the risk of a 51% attack takes on a different dimension, given the consensus mechanism’s reliance on validators rather than mining power. A 51% attack in a PoSA ecosystem would require gaining control over a majority of the stake or authority within the network, potentially allowing for similar exploits as those in traditional mining-based blockchains.

6. Liquidity Risks

Engaging with crypto-assets, whether through decentralized protocols or centralized platforms, carries inherent liquidity risks. Liquidity refers to the ease with which an asset can be bought or sold in the market without affecting its price. Highly liquid markets allow for assets to be traded quickly and with minimal price slippage, whereas in less liquid markets, selling or buying large amounts of assets can significantly impact the asset’s price, potentially leading to substantial losses.

For decentralized protocols, liquidity depends on the participation and volume in the protocol’s liquidity pools and can vary widely across different assets, platforms and networks. Factors such as market volatility, regulatory changes, or shifts in investor sentiment can dramatically affect liquidity levels, potentially trapping assets or leading to unfavorable trading conditions.

Centralized platforms, while often providing higher liquidity levels due to their managed order books and larger user bases, are not immune to liquidity risks. These can arise from operational issues, regulatory actions, sudden shifts in market dynamics, or platform-specific events, which can affect the ability to trade assets efficiently.

You should be aware of liquidity levels for any crypto-asset or platform you choose to engage with and consider the potential risks and impacts on your ability to trade or liquidate positions. Diversification, thorough research, and an understanding of market conditions are critical strategies to mitigate liquidity risks.

7. Risk of uninsured losses

Participants in the crypto-asset market should be aware of the risk of uninsured losses. Unlike traditional financial institutions, which may offer government-backed insurance on deposits, crypto-assets typically do not benefit from any protections against losses. This means that losses due to hacks, fraud, operational failures, or the insolvency of a platform, may not be recoverable. 

8. Risk of malfunction in the Blockchain

Engaging with blockchain technology exposes you to the risk of malfunctions within the blockchain network itself. Despite the robust security and operational reliability of many blockchain networks, vulnerabilities, bugs in smart contracts, or unforeseen failures in the consensus mechanism, can occur; potentially leading to loss of funds, interrupted transactions, or compromised data integrity. While the decentralized and open-source nature of blockchain technology facilitates ongoing audits and improvements, no system is infallible. You should be aware of these risks and consider the maturity, security practices, and track record of any blockchain or smart contract platform before initiating transactions or locking assets into protocols.

9. Regulatory Risks

The legal landscape for digital currencies and blockchain technologies is evolving globally, with jurisdictions adopting varying regulations that can affect the use, trade, taxation, and legality of crypto-assets. Any upcoming changes, restrictions or legal prohibitions made in the relevant legislation and future legislation, notices, rulings, injunctions, may impact the existence or lawfulness of crypto-assets and related services. It is your responsibility to stay informed about and comply with the regulations in your jurisdiction and any jurisdiction in which you intend to transact or hold assets.

10. Market Risks

The market for crypto-assets is subject to high volatility and unpredictability, exposing prospective investors to significant market risks. Prices can fluctuate widely in short periods due to market sentiment, technological developments, regulatory news, and macroeconomic trends, among other factors. This volatility can lead to substantial gains or losses for your investments. You should be prepared for the possibility of losing your entire investment and consider your financial situation, risk tolerance, and investment objectives carefully before participating in the crypto-asset market. 

11. Unanticipated Risks

The nature of crypto-assets and blockchain technology means you are exposed to unanticipated risks. These can arise from technological advancements, market innovations, geopolitical events, or changes in social dynamics that are not foreseeable. Such risks may introduce new vulnerabilities, alter market dynamics in unpredictable ways, or render existing security measures and strategies obsolete.

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