By purchasing, holding and using the META Tokens, you expressly acknowledge and assume the risks set out in this section. If any of these risks and uncertainties develops into actual events, the business, financial condition, results of operations and prospects of Metadium or its Affiliates may be materially and adversely affected. In such cases, you may lose all or part of the value of the META Token. Such risks include but are not limited to the following:
Risks Relating to the META Tokens
1.5.1 There may not be a public or secondary market for the META Tokens
a The META Tokens are intended to be native tokens to be used on the Metadium platform, and Metadium and its Affiliates have not and may not actively facilitate any secondary trading or external trading of META Tokens. In addition, there is and has been no public market for the META Tokens and the META Tokens are not traded, whether on any cryptocurrency exchange or otherwise. In the event that the META Tokens are traded on a cryptocurrency exchange, there is no assurance that an active or liquid trading market for the META Tokens will develop or if developed, be sustained. There is also no assurance that the market price of the META Tokens will not decline below the amount paid for the META Tokens, which is not indicative of such market price.
b A META Token is not a currency issued by any central bank or national, supranational or quasi-national organisation, nor is it backed by any hard assets or other credit. Metadium and its Affiliates are not responsible for nor do they pursue the circulation and trading of the META Tokens on the market. Trading of the META Tokens merely depends on the consensus on its value between the relevant market participants, and no one is obliged to acquire any META Token from any holder of the META Token, including the purchasers of the META Tokens, nor does anyone guarantee the liquidity or market price of the META Tokens to any extent at any time. Accordingly, Metadium and its Affiliates cannot ensure that there will be any demand or market for the META Tokens, or that the price upon which the META Tokens were purchased is indicative of the market price of the META Tokens if they are made available for trading on a cryptocurrency exchange.
Risks Relating to Metadium, its Affiliates and the Metadium Platform
1.5.2 Limited availability of sufficient information
The Metadium platform is still at an early development phase as of the date of this White Paper. Its governance structure, purpose, consensus mechanism, algorithm, code, infrastructure design and other technical specifications and parameters may be updated and changed frequently without notice. While the White Paper contains the key ©2018 Metadium, Next Generation Identity Standard for the New Era information currently available in relation to the Metadium platform, it is subject to adjustments and updates from time to time, as announced on Metadium's website (the "Website"). Purchasers will not have full access to all the information relevant to the META Tokens and/or the Metadium platform. Nevertheless, it is anticipated that significant milestones and progress reports will be announced on the Website.
1.5.3 The digital assets raised in the sale of META Tokens are exposed to risks of theft
Whilst Metadium and its Affiliates will make every effort to ensure that the ETH and other digital assets received from the sale of META Tokens are securely held through the implementation of security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of hacks, mining attacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on such blockchain addresses, the Ethereum Blockchain, or any other blockchains, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. In such event, even if the sale of META Tokens is completed, Metadium and its Affiliates may not be able to receive the cryptocurrencies raised and Metadium and its Affiliates may not be able to utilise such funds for the development of the Metadium platform, and the launch of the Metadium platform might be temporarily or permanently curtailed. As such, the issued META Tokens may hold little worth or value. The META Tokens are uninsured, unless you specifically obtain private insurance to insure them. In the event of any loss or loss of value of the META Tokens, you may have no recourse.
1.5.4 The blockchain address(es) may be compromised and the digital assets may not be able to be retrieved
The blockchain address(es) are designed to be secured. However, in the event that the blockchain address(es) for the receipt of payments for the META Tokens or otherwise are, for any reason, compromised (including but not limited to scenarios of the loss of keys to such blockchain address(es), the funds held at such blockchain address(es) may not be able to be retrieved and disbursed, and may be permanently unrecoverable. In such event, even if the sale of the META Tokens is successful, Metadium and its Affiliates will not be able to receive the funds raised and Metadium and its Affiliates will not be able to utilise such funds for the development of the Metadium platform, and the implementation of the Metadium platform might be temporarily or permanently curtailed. As such, distributed META Tokens may hold little worth or value.
1.5.5 There is no assurance of any success of the Metadium platform and Metadium and its Affiliates may cease the development, launch and operation of the Metadium platform
a The value of, and demand for, the META Tokens hinges heavily on the performance of the Metadium Platform. There is no assurance that the Metadium Platform will gain traction after its launch and achieve any commercial success. The Metadium ©2018 Metadium, New Generation Identity Standard for the New Era Platform has not been fully developed, finalised and integrated and is subject to further changes, updates and adjustments prior to its launch. Such changes may result in unexpected and unforeseen effects on its projected appeal to users, and hence impact its success. There are no guarantees that the process for creating the META Tokens will be uninterrupted or error-free.
b While Metadium has made every effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies raised in the sale of META Tokens will be sufficient for the development and integration of the Metadium platform. For the foregoing or any other reason, the development and integration of the Metadium platform may not be completed and there is no assurance that its systems, protocols or products will be launched at all. As such, distributed META Tokens may hold little or no worth or value.
c Additional reasons which may result in the termination of the development, launch or operation of the Metadium platform includes, but is not limited to, (aa) an unfavourable fluctuation in the value of cryptographic and fiat currencies, (bb) the inability of Metadium and its Affiliates to establish the Metadium platform or the META Tokens' utility or to resolve technical problems and issues faced in relation to the development or operation of the Metadium platform or the META Token, the failure of commercial relationships, (cc) intellectual property disputes during development or operation, and (dd) changes in the future capital needs of Metadium or its Affiliates and the availability of financing and capital to fund such needs. For the aforesaid and other reasons, the Metadium platform may no longer be a viable project and may be dissolved or simply not launched, negatively impacting the Metadium platform and the potential utility and value of the META Tokens.
1.5.6 There may be lack of demand for Metadium platform and the Services provided, which would impact the value of the META Tokens
a There is a risk that upon launching of the Metadium platform, there is a lack of interest from consumers, merchants, advertisers, and other key participants for the Metadium platform and the Services, and that there may be limited interest and therefore use of the Metadium platform and the META Tokens. Such a lack of interest could impact the operation of the Metadium platform and the uses or potential value of the META Tokens.
b There is a risk of competition from alternative platforms that may have been established, or even from existing businesses which would target any segment of the potential users of the Metadium platform fulfilling similar demands, e.g. Facebook or other corporations targeting advertisers seeking purchase consumer data and market analysis. Therefore, in the event that the competition results in a lack of interest and demand for the Metadium platform, the Services and the Tokens, the operation of the Metadium platform and the value of the Tokens may be negatively impacted.
1.5.7 Metadium and its Affiliates may experience system failures, unplanned interruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect Metadium or its Affiliates' infrastructure network, or the Metadium platform
a Metadium and its Affiliates are unable to anticipate or detect when there would be occurrences of hacks, cyber-attacks, mining attacks (including but not limited to doublespend attacks, majority mining power attacks and "selfish-mining" attacks), distributed denials of service or errors, vulnerabilities or defects in the Metadium platform, the Tokens, the Purchaser Wallet or any technology (including but not limited to smart contract technology) on which Metadium, its Affiliates, the Metadium platform, the META Tokens, the Purchaser Wallet rely or on the Ethereum Blockchain or any other blockchain. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. Metadium and its Affiliates may not be able to detect such issues in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession.
b Although Metadium and its Affiliates will be taking steps against malicious attacks on its appliances or its infrastructure, which are critical for the maintenance of the Metadium platform and its other services, there can be no assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future, and that any of such security measures will be effective. Any significant breach of security measures or other disruptions resulting in a compromise of the usability, stability and security of Metadium and its Affiliates' network or services, including the Metadium platform.
Risks Relating to the Participation in the Sale of META Tokens
1.5.8 You may not be able to recover the Payment Amount
Except as provided under these Terms or prescribed by applicable laws and regulations, Metadium is not obliged to provide you with a refund of the Payment Amount. No promises of future performance or price are or will be made in respect to the META Tokens, including promises of inherent value or continuing payments, and there is no guarantee that the META Tokens will hold any particular value. Therefore, the recovery of the Payment Amount may be impossible or may be subject to applicable laws and regulations.
1.5.9 You may be subject to adverse legal and/or tax implications as a result of the purchase, distribution and use of the META Tokens
a The legal character of cryptocurrency and cryptographic assets remain uncertain. There is a risk that the META Tokens may be considered securities in certain jurisdictions, or may be considered to be securities in certain jurisdictions in the future. Metadium and its Affiliate does not provide any warranty or guarantee as to how the META Tokens will be classified, and each purchaser will bear all consequences of the META Tokens being considered securities in their respective jurisdictions, and bear the responsibility of the legality, use and transfer of the Tokens in the relevant jurisdictions.
b Further, the tax treatment of the acquisition or disposal of such cryptocurrency or cryptographic assets might depend on whether they are classified as securities, assets, currency or otherwise. As the tax characterisation of the META Tokens remains indeterminate, you must seek your own tax advice in connection with the purchase of the META Tokens, which may result in adverse tax consequences or tax reporting requirements for you.
1.5.10 The loss or compromise of information relating to the Purchaser Wallet and your Metadium platform ID may affect your access to and possession of the META Tokens
There is a risk that you may lose access to and possession of the META Tokens permanently due to loss of unique personal ID created in the Metadium platform, the Metadium platform ID, and other identification information, loss of requisite private key(s) associated with the Purchaser Wallet or vault storing the META Tokens or any other kind of custodial or purchaser errors.
1.5.11 Blockchains may face congestion and transactions may be delayed or lost
Most blockchains used for cryptocurrency transactions (e.g. Ethereum) are prone to periodic congestion during which transactions can be delayed or lost. Individuals may also intentionally spam the network in an attempt to gain an advantage in purchasing cryptographic tokens. This may result in a situation where block producers may not include your purchase of the META Tokens when you intends to transact, or your transaction may not be included at all.
Privacy and data retention issues
1.5.12 As part of the Restricted Public Sale, the verification processes and the subsequent operation of the Metadium platform, Metadium may collect personal information from you.
The collection of such information is subject to applicable laws and regulations. All information collected will be used for purposes of the Restricted Public Sale and operations of the Metadium platform, thus it may be transferred to contractors, service providers and consultants worldwide as appointed by Metadium. Apart from ©2018 Metadium, Next Generation Identity Standard for the New Era external compromises, Metadium and its appointed entities may also suffer from internal security breaches whereby their employees may misappropriate, misplace or lose personal information of purchasers. Metadium may be required to expend significant financial resources to alleviate problems caused by any breaches or losses, settle fines and resolve inquiries from regulatory or government authorities. Any information breaches or losses will also damage Metadium's reputations, thereby harming its long-term prospects.
1.5.13 General global market and economic conditions may have an adverse impact on Metadium and its Affiliates' operations and the use of the Metadium Platform
a Metadium and its Affiliates could be affected by general global economic and market conditions. Challenging economic conditions worldwide have from time to time, contributed, and may continue to contribute, to slowdowns in the information technology industry at large. Weakness in the economy may have a negative effect on Metadium and its Affiliates' business strategies, results of operations and prospects.
b Suppliers on which Metadium platform relies for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on Metadium and its Affiliates' operations or expenses. Additionally, in a down-cycle economic environment, Metadium and its Affiliates may experience the negative effects of a slowdown in commerce and usage of the Metadium platform, whereby there is less activity or usage by merchants and consumers purchasing or selling goods and services, and advertisers in terms of processing data and targeting consumers.
c There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant adverse impact on Metadium and its Affiliates' business strategies, results of operations and prospects and hence the Metadium platform, which may in turn impact the value of the META Tokens.
1.5.14 The regulatory regime governing blockchain technologies, cryptocurrencies, Meta Tokens, offering of META Tokens, and the Metadium Platform remain uncertain, and any changes, regulations or policies may materially adversely affect the development of the Metadium Platform and the utility of the META Tokens
a Regulation of the META Tokens, the offer and sale of META Tokens, cryptocurrencies, blockchain technologies, and cryptocurrency exchanges is currently undeveloped or underdeveloped and likely to rapidly evolve. Such regulation also varies significantly among different jurisdictions, and is hence subject to significant uncertainty. The various legislative and executive bodies in different jurisdictions may in the future adopt laws, regulations, guidance, or other actions, which may severely impact the development and growth of the Metadium Platofrm, the adoption and utility of the META Tokens or the issue, offer, and sale of the META Tokens by Metadium. Failure by Metadium and its Affiliates or users of the Metadium Platform and the Services to comply with any laws, rules and regulations, some of which may not exist yet or are subject to interpretation and may be subject to change, could result in a variety of adverse consequences against Metadium and its Affiliates, including civil penalties and fines.
b Blockchain networks also face an uncertain regulatory landscape in many foreign jurisdictions. Various jurisdictions may, in the near future, adopt laws, regulations or directives that affect the Metadium platform, and therefore, the value of the META Tokens. Such laws, regulations or directives may directly and negatively impact the operations of Metadium and its Affiliates. The effect of any future regulatory change is impossible to predict, but such change could be substantial and could materially adverse to the development and growth of the Metadium Platform and the adoption and utility of the META Tokens.
c To the extent that Metadium and its Affiliates may be required to obtain licences, permits and/or approvals (collectively, the "Regulatory Approvals") to carry out its business, including that of the creation of the META Tokens and the development and operation of the Metadium platform, but are unable to obtain such Regulatory Approvals or if such Regulatory Approvals are not renewed or revoked for whatever reason by the relevant authorities, the business of Metadium and its Affiliates may be adversely affected.
d There is no assurance that more stringent requirements will not be imposed upon Metadium and its Affiliates by the relevant authorities in the future, or that Metadium and its Affiliates will be able to adapt in a timely manner to changing regulatory requirements. These additional or more stringent regulations may restrict Metadium and its Affiliates' ability to operate its business and Metadium and its Affiliates may face actions for noncompliance if it fails to comply with any of such requirements.
e Further, should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the Metadium platform ©2018 Metadium, New Generation Identity Standard for the New Era may no longer be commercially viable and Metadium and its Affiliates may opt to discontinue the Metadium platform and/or the META Tokens. Further, it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the Metadium platform and the META Tokens. Metadium and its Affiliates may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the distributed META Tokens may hold little or no worth or value.
1.5.15 There may be risks relating to acts of God, natural disasters, wars, terrorist attacks, riots, civil commotions widespread communicable diseases and other events beyond the control of Metadium and its Affiliates
The sale of the META Tokens and the performance of Metadium, its Affiliates and/or the Metadium platform's activities may be interrupted, suspended or delayed due to acts of God, natural disasters, wars, terrorist attacks, riots, civil commotions, widespread communicable diseases and other events beyond the control of Metadium and its Affiliates. Such events could also lead to uncertainty in the economic outlook of global markets and there is no assurance that such markets will not be affected, or that recovery from the global financial crisis would continue. In such events, Metadium and its Affiliates' business strategies, results of operations and outlook may be materially and adversely affected, and the demand for and use of the META Tokens, the Metadium platform and the Services may be materially affected. Further, if an outbreak of such infectious or communicable diseases occurs in any of the countries in which Metadium, its Affiliates, and the participants of the Metadium platform have operations in the future, market sentiment could be adversely affected and this may have a negative impact on the Metadium platform and its community.
1.5.16 Blockchain and cryptocurrencies, including the META Tokens are a relatively new and dynamic technology.
In addition to the risks highlighted herein, there are other risks associated with your purchase of, holding and use of the META Tokens, including those that we cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the risks discussed herein.