This Risk and Compliance Disclaimer should be read in conjunction with the Terms of Service (Terms) of UX (“UX”). In plain English, we want you to understand the important risks and compliance matters while you use our platform.
Any content (article, video) provided by UX has been created solely for educational and informational purposes, and should not be construed as investment advice. Nothing in this website is an offer to sell, or the solicitation of an offer to buy, any tokens. Nothing in this website should be treated or read as a guarantee or promise of how the UX platform or of the utility or value of any of the tokens used on the platform. The information provided in this website is for general informational purposes only. It does not constitute, and should not be considered legal advice, investment advice, or tax advice. This website includes current and future plans, which could change at its sole discretion, and the success of which will depend on many factors outside UX’s control, including market-based factors and factors within the blockchain and cryptocurrency industries, among others. UX is under constant development and is subject to change. Any statements about future events, documentation and contents may be inaccurate or incorrect at any given time.
We understand that regulatory bodies have taken a diverse approach to the laws and regulations regarding digital assets, including some characterizing or defining digital assets as convertible virtual currency (by USA FinCEN) or virtual commodity (by Hong Kong).
Disclosure: Digital assets are not fiat money nor fiat currency. Digital assets are NOT backed by any government or central bank. We may at times have opinions of the different regulatory approaches taken by various government bodies; however, at all times, we will fully abide by rules and regulations of the respective countries we operate in.
We cooperate with governments and respect regulations and comply with applicable regulations. As good corporate citizens, we may be asked for information from law enforcement authorities and will assist if permissible by law as law enforcement conduct investigations to pursue and thwart illicit activity. What this also means is that our platform is intended for law abiding customers. We welcome the opportunity to have you as a user, and in return we require that you act legally and properly on our platform.
Interacting with decentralized technologies and digital assets is considered high risk. The risk of loss in transactions or holding digital assets can be substantial. You should carefully consider whether interacting, holding, or trading with digital assets or interacting with decentralized technologies is suitable for you in light of your own condition.
Risks associated with UX Network and Tokens
As an open-source project, the UX Network will not be represented, maintained or monitored by an official organization or authority. The open-source nature of the UX Network means that it may be difficult for the Company or contributors maintain or develop the UX Network and the Company may not have adequate resources to address emerging issues or malicious programs that develop within the UX Network adequately or in a timely manner. Third parties not affiliated with the Company may introduce weaknesses or bugs into the elements of the UX Network and open-source code which may negatively impact the UX Network. Such events may result in a loss of trust in the security and operation of the UX Network and a decline in user activity and could negatively impact the market price of the Tokens.
The UX Network intends to do a 2-way peg implementation in the cosmos network thus vulnerabilities of Cosmos and Ethereum, such as centralization risks, on-chain network upgrade delays, on-chain governance disagreements, failure in protocol update, network congestion, scalability issues of Ethereum, delayed IBC update, and other general risks, will all result in delays or malfunction of the UX Network.
The UX Network is intended to be a universal defi protocol for cross chain interactions. Hence, any malfunction, unintended function, unexpected functioning of or attack on other blockchain or protocols that UX Network interact with may cause the UX Network to malfunction or function in an unexpected or unintended manner.
The UX Network may be the target of malicious cyberattacks or may contain exploitable flaws in its underlying code, which may result in security breaches and the loss or theft of Tokens. If the UX Network’s security is compromised or if the UX Network is subjected to attacks that frustrate or thwart our users’ ability to access the UX Network, their Tokens or the UX Network products and services, users may cut back on or stop using the UX Network altogether, which could seriously curtail the utilization of the Tokens and cause a decline in the market price of the Tokens.
The UX Network structural foundation, the open-source protocol, the software application and other interfaces or applications built upon the UX Network are still in an early development stage and are unproven, and there can be no assurances that the UX Network and the creating, transfer or storage of the Tokens will be uninterrupted or fully secure which may result in a complete loss of users’ Tokens or an unwillingness of users to access, adopt and utilize the UX Network. Further, the UX Network may also be the target of malicious attacks seeking to identify and exploit weaknesses in the software or the UX Network which may result in the loss or theft of Tokens.
The UX Network is susceptible the same risks as all other protocols within the DeFi ecosystem. The potential risks can be compounded by the fact that the protocol exists as a cross chain DeFi product. DeFi risks including overleveraged positions, liquidation of assets, and flashloan attacks are always prevalent in the system. The utilization of the Tokens and the market price of the Tokens will be largely undermined if under attack.
Uncertain Regulatory Framework
The regulatory status of cryptographic tokens, digital assets and blockchain technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether governmental authorities will regulate such technologies. It is likewise difficult to predict how or whether any governmental authority may make changes to existing laws, regulations and/or rules that will affect cryptographic tokens, digital assets, blockchain technology and its applications. Such changes could negatively affect the Tokens in various ways, including, for example, through a determination that the Tokens are regulated financial instruments that require registration or licensing of those instruments or some or all of the parties involved in the sale, purchase and delivery thereof. The Company, may cease the distribution of Tokens, cease the development of the Network or cease operations in a specific jurisdiction in the event that governmental authority, regulatory actions, changes to law or regulations, or other actions make such distribution, development and/or operations unlawful or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction.
Risk of High Volatility of Crypto Assets
The prices of cryptocurrencies have historically been subject to dramatic fluctuations and are highly volatile, and the market price of the Tokens may also be highly volatile. Several factors may influence the market price of the Tokens, including, but not limited to:
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