Notice

ArchLoot is currently in the initial development stages and there are a variety of unforeseeable risks. You acknowledge and agree that there are numerous risks associated with acquiring AL, holding AL, and using AL for participation in ArchLoot. In the worst scenario, this could lead to the loss of all or part of AL held. IF YOU DECIDE TO ACQUIRE AL OR PARTICIPATE IN ARCHLOOT, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:

■ Uncertain Regulations and Enforcement Actions: The regulatory status of ArchLoot, AL and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of digital assets has become a primary target of regulation in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including AL and/or ArchLoot. Regulatory actions could negatively impact AL and/or ArchLoot in various ways. The Company, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. After consulting with a wide range of legal advisors to mitigate the legal risks as much as possible, the Company and Distributor have worked with the specialist blockchain department at Jacque Law LLC and obtained a legal opinion on the token distribution, and will be conducting business in accordance with the prevailing market practice.

■ Inadequate disclosure of information: As of the date hereof, ArchLoot is still under development and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this material contains the most current information relating to ArchLoot, it is not absolutely complete and may still be adjusted and updated by the ArchLoot team from time to time. The ArchLoot team has neither the ability nor obligation to keep holders of AL informed of every detail (including development progress and expected milestones) regarding the project to develop ArchLoot, hence insufficient information disclosure is inevitable and reasonable.

■ Competitors: Various types of decentralized applications, games, and networks are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative networks could be established that utilize the same or similar code and protocol underlying AL and/or ArchLoot and attempt to re-create similar facilities. ArchLoot may be required to compete with these alternative networks, which could negatively impact AL and/or ArchLoot.

■ Failure to develop: There is the risk that the development of ArchLoot will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency, or AL, unforeseen technical difficulties, and shortage of development funds for activities.

■ Security weaknesses: Hackers or other malicious groups or organizations may attempt to interfere with AL and/or ArchLoot in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Company, the Distributor, or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of AL and/or ArchLoot, which could negatively affect AL and/or ArchLoot. Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to AL and/or ArchLoot by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.

■ Other risks: In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks (as more particularly set out in the Terms and Conditions) associated with your participation in ArchLoot, as well as the acquisition of, holding, and use of AL, including those that the Company or the Distributor cannot anticipate. Such risks may further materialize as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Company, the Distributor, their respective affiliates, and the ArchLoot team, as well as understand the overall framework, mission, and vision for ArchLoot prior to participating in the same and/or acquiring AL.