AN INVESTMENT IN, ACCEPTANCE OF, AND TRANSACTING WITH ANY DIGITAL CURRENCY INVOLVES RISKS. THESE RISKS MAY INCLUDE, AMONG OTHERS, MARKET RISK, LIQUIDITY RISK, MARKET VOLATILITY AND ECONOMIC, POLITICAL AND REGULATORY RISKS AND ANY COMBINATION OF THESE AND OTHER RISKS. BY BUYING, SPENDING, RECEIVING, TRADING OR OTHERWISE USING THE FANX TOKEN, WHETHER ACQUIRED OR RECEIVED FROM THE "Issuer" DIRECTLY OR THROUGH A THIRD PARTY, YOU CONSENT AND AGREE TO HAVING READ, UNDERSTOOD AND ACCEPTED THIS RISK DISCLOSURE.
FANX Tokens (the “Tokens”) are an in-app token and are being used as a settlement currency on the FrontFanz Platform. They have been issued by Growthimpact Limited, (the "Issuer"), a company incorporated under the laws of the British Virgin Islands, with registered offices at 2nd Floor, Ellen L. Skelton Building, Fishers Lane, Road Town, VG 1110.
The Tokens do not represent any claim for repayment of a monetary sum against the "Issuer", nor have persons holding Tokens (“Token Holders”) any claim against the "Issuer" for payment of interests or for sharing of profits generated by the "Issuer". A total loss of the value of FANX Tokens or any investment due to various causes cannot be excluded.
The "Issuer" will undertake best efforts to have the FANX Token listed at a cryptocurrency exchange or trading platform but cannot guarantee if and when such listing will take place. Until a listing has been completed, Token Holders can dispose of tokens only by way of selling them on a bilateral basis. There is no guarantee that buyers for Tokens will be available, or that they will be willing to pay the price paid by the Token Holder at the time of the acquisition of the Token.
An acquisition of Tokens is suitable only for experienced persons who are in a position to evaluate the risks, including the risks related to the underlying technology, and who have sufficient resources to be able to bear any losses, including a complete loss, which may result from such acquisition. Before subscribing to or otherwise acquiring any Tokens, prospective buyers should specifically ensure that they understand the structure of, and the risk inherent to, the Tokens.
Prior to the acquisition of FANX Token, persons should independently assess any possible risks, seek advice with respect to the economic, legal, regulatory and tax implications of the purchase of FANX Token and should consult with his/her own investment, legal, tax, accounting or other advisors to determine the potential benefits, burdens, risks and other consequences of a purchase of FANX Token.
Prospective Token Holders are required to study the white paper, the website, and all other available information sources, and are encouraged to clarify all their questions prior to the acquisition of Tokens.
It is the token buyer’s / receiver’s responsibility to fully observe the laws of any relevant territory or jurisdiction outside BVI in connection with any purchase of the tokens, including obtaining required governmental or other consents or observing any other required legal or other formalities.
The "Issuer" and each strategic partner on the FrontFanz Platform reserves the right to deny the purchase of the tokens by any purchaser.
The FANX Token is designed as a in-app payment token and does therefore, according to its structure, not constitute a security or financial instrument. Nothing in the White Paper, Website, and any other informational Sources (the “Sources”) shall be deemed to constitute a prospectus or offer document for securities or financial instruments of any kind in any jurisdiction nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction.
The Sources are for project description and informational, illustration and discussion purposes only and does in no way provide an offer to sell nor a solicitation of any offer to buy neither the planned FANX Token, nor any security, nor any other financial instrument. Furthermore, the Sources does not constitute an investment recommendation to acquire FANX Token nor for the disinvestment of other securities, financial instruments or other assets.
The Sources do not imply any elements of a contractual relationship. The content of the Sources is not binding for the "Issuer" and is subject to change in line with the ongoing research and development of the FANX Token. Any legal relationship between a token purchaser of the FANX Token and the "Issuer" is not established by this document but solely based on separate individual agreements and conditions, in which the rights and obligations of a token purchaser and the "Issuer" are ruled. In case of any ambiguities or contradictions the regulations of the individual agreement take precedence over the information contained in the Sources.
The Sources and the FANX token are in particular not directed at persons with registered residence or office, habitual residence or tax residence in countries or initiate the acquisition of FANX Token from or through countries in which the sale or purchase of tokens and cryptocurrencies is prohibited or subject to certain conditions, such as official approval, which have been classified as high-risk countries and countries under observation with regard to money laundering and terrorist financing by the Financial Action Tasks Force (FATF), or against which embargoes or sanctions have been imposed, in particular by United States of America or the European Union.
The information contained in the Sources is for general understanding purposes only. The Sources are for discussion and presentation purposes only. The "Issuer" endeavours to keep the information contained in Sources up-to-date and correct, however, the "Issuer" has no obligation to update or keep current any information or projection. The "Issuer" does not make any representation or warranty of any kind as to the accuracy, completeness, reliability, suitability or availability of the information contained and the conclusions reached in the Sources.
FANX is a in-app payment token that enables its holders to purchase, tip or subscribe to content available on the frontfanz.com Platform.
The "Issuer"’s capital (equity) is limited. The "Issuer" is a newly incorporated company, and there is no historical financial data or key figures to assess the financial situation of the "Issuer" with regard to previous years. Negative developments such as the destruction of assets or an economic downturn could negatively affect the "Issuer"’s liquidity and/or solvency.
The Issuer’s success depends to a large extent on the continued involvement of key personnel. Such key personnel are either employed by the "Issuer" or made available through an agreement with its sole shareholder Growthimpact LTD.
The "Issuer" and the FrontFanz Platform have limited operating history. The "Issuer" may be forced to cease operations for some reason. The "Issuer" may not successfully develop, market and launch the FANX Token and even if launched the FANX Token may not be widely adopted, may have limited users, could be subject to significant competition and may not be successful and not meet the expectations. The "Issuer" exclusively offers to facilitate mediation of services and the handling of payments but is in no way responsible for the execution of the facilitated service via the FrontFanz Platform.
If the FrontFanz Platform’s security is compromised or if the FrontFanz Platform is subjected to attacks that frustrate or thwart our users’ ability to access the FrontFanz Platform or FANX Token or the FrontFanz Platform services, users may be prevented from, cut back on or stop using the FrontFanz Platform altogether, which could seriously curtail the value of FANX.
Operational risk summarises the risks a company undertakes when it attempts to operate within a given field or industry. Operational include risks resulting from breakdowns in internal procedures, people and systems.
FANX Token purchasers will not have voting rights or the ability to influence the "Issuer"s decisions.
The FANX Token is an in-app payment token (cryptocurrency utility token), which does not substantiate any debt claim against the "Issuer" and comprises no any other rights but the right to use and have access to the FrontFanz Platform and its services via the FANX Token, thus no further rights than described in the Sources neither vis-à-vis the "Issuer" nor third parties, in particular no participation or membership rights, no voting rights, no dividend rights, no subscription rights.
FANX Token does not represent an investment or a share in a company. Token purchasers have no claim to any benefits. Token purchasers have no right to return acquired FANX Token to the "Issuer".
There is no assurance that FANX Token retains its value. There is no assurance that token purchasers will be able to sell their FANX Token. Rather, there is the risk of deterioration in the value and a total loss of the purchase. Prices of tokens as the FANX Token are extremely volatile, especially over short time horizons, and fluctuations in the price, which are to be expected, could materially and adversely affect the Issuer's business.
Existing laws, regulations and financial oversight practice relevant to Growthimpact LTD and the FANX Token are subject to political debate and legislative changes in all jurisdictions where Tokens are offered for subscription. Changes in applicable laws and regulations may be implemented and enter into force without warning and with immediate or even retrospective effect leading to impacts on the Issuer's operational results, the value of the investments made, the ability to offer, distribute and trade the Tokens. In very severe circumstances, jurisdictions may enforce a cancellation of the Offering or a closing of the platform and the "Issuer" respectively. This could lead to losses incurred by the Token Holders.
Token Holders are strictly reminded to observe legal and regulatory developments at all times and to consider their own position vis-à-vis those requirements. The "Issuer" has internal processes to ensure compliance with the laws and regulations of BVI. If, despite these precautions, breaches of statutory or regulatory provisions occur, this could adversely affect the Issuer’s business activities and/or the price of the Tokens. Furthermore, changes to data protection laws or regulations may force the "Issuer" to disclose any kind of additional information to authorities in the future.
Prior to the listing of tokens at a cryptocurrency exchange or trading platform no liquid market for Tokens will exist. Markets for crypto assets are not mature nor fully developed markets with sufficient liquidity and volume to provide stable prices, leading to high bid/ask spreads, very high volatility and vulnerability to price manipulation of large players in the market. The price at which Tokens will be traded will depend upon a number of factors, most of which are beyond the Issuer’s control. In addition, cryptocurrency markets in general are subject to significant price and volume fluctuations.
All transactions on the Polygon blockchain are irrevocable and final as soon as the committed transactions have been signed and exchanged. Erroneous token transactions may not be recoverable and lead to loss of Tokens. The Token Holder bears the entire responsibility regarding the correct execution of token transactions.
Additionally, Tokens may be lost or become inaccessible, in particular if the Token Holder loses the respective passwords, pincodes and/or private keys to dispose of its Tokens, or due to malfunctioning of the e-wallet in which the Tokens are stored. The Token Holder bears the entire responsibility regarding the secure storage of passwords, pincodes and private keys (necessary to access and use the FANX Token).
Because FANX is a mere payment token, restitution of FANX Token to the "Issuer" and repayment of the purchase price by the "Issuer" are explicitly excluded. Purchasers of FANX Token must therefore take into account that the money used to purchase FANX Token might be tied in FANX Token and can only be changed in fiat currencies or other cryptocurrencies via trading systems of third parties, insofar as such trading systems are available. Unless a third party is willing to acquire FANX Token from the purchaser against fiat currencies or other cryptocurrencies, the purchaser of FANX Token cannot sell FANX Token and the acquired FANX Token might become useless or worthless to the purchaser.
Legal and regulatory changes could adversely affect the Digital Assets market. Regulation of Digital Currencies and Token offerings such as, cryptocurrencies, blockchain technologies, and cryptocurrency exchanges is undeveloped and likely to rapidly evolve. In addition, regulation of Digital Assets varies significantly among international, federal and local jurisdictions and is subject to significant uncertainty. Various legislative and executive bodies may in the future, adopt laws, regulations, guidance, or other actions, which may severely impact the development and growth of the Digital Asset markets. Failure by Growthimpact LTD or Clients of the FrontFanz Platform 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, including civil penalties and fines. Exchanges to trade Digital Assets such as the FANX Token face an uncertain regulatory landscape in many jurisdictions such as the European Union, China and Russia. Various jurisdictions may, in the near future, adopt laws, regulations or directives that affect the FrontFanz Platform and the FANX token. In particular, authorities could prohibit the possibility to trade or redeem Digital Assets. The effect of any future regulatory change is impossible to predict, but such change could be substantial and materially adverse to the development and growth of the FrontFanz Platform and the separate FANX Token. New or changing laws and regulations or interpretations of existing laws and regulations, may materially and adversely impact the value of Digital Currencies and the rights of the holders of such assets.
The legal status of certain Digital Currencies may be uncertain. This can mean that the legality of holding or trading them might be impacted. Whether and how one or more Digital Currencies and Tokens constitute property, or assets, or rights of any kind may also seem unclear. Clients are responsible for knowing and understanding how Digital Currencies and Tokens will be addressed, regulated, and taxed under applicable law.
The tax characterization of tokens is under development in different jurisdictions and may vary even within jurisdiction. Token Holders must seek their own tax advice in the relevant jurisdictions in connection with acquiring tokens, which may result in adverse tax consequences, including withholding taxes, income taxes and tax reporting requirements.
A country risk can arise if a country restricts trading of or investing in Digital Currencies, for instance by imposing economic sanctions or currency restrictions.
In addition to the security risk inherent to internet use for accessing online services or for managing transactions, using blockchain technology involves different levels of exposure to risk and in deciding whether to use blockchain technology for investment purposes, potential investors and token holders should take note of the following.
Underlying software applications and software platforms (including the Polygon blockchain) are still in an early development stage and unproven. Therefore, an inherent risk that the software could contain weaknesses, vulnerabilities or bugs causing, inter alia, partial or the complete loss of Tokens exists
As with other tokens based on the Polygon blockchain, the FANX Tokens are susceptible to attacks. Hackers or other malicious groups or organisations may attempt to interfere with the FrontFanz Platform or FANX Token in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Any successful attacks present a risk to the FrontFanz Platform and the FANX Token, including, but not limited to accurate execution and recording of transactions involving the token.
Direct or indirect damage may be incurred by the Token Holder in connection with transmission errors, transmission cutouts, technical defects, overload, service interruptions (e.g. systems maintenance), disruptions, interference, illegal intervention (e.g. hacking) and willful blockage of telecommunication devices and networks (e.g. “mail bombing”, attacks intended to cripple services, etc.) or in connection with other malfunctions or deficiencies on the part of telecommunication and network operators.
In using the FrontFanz Platform, data is transmitted over open, generally public networks (e.g. the Internet). Data is regularly transmitted in an unsupervised manner across borders, even if the sender and the recipient are both located in the same place. Even where the data itself is encrypted, the sender and recipient can sometimes remain unencrypted, such that third parties may be able to infer their identity. Growthimpact LTD ("Issuer") and FrontFanz the social platform accepts no liability and gives no guarantee that data transmitted and published via the Internet are correct, accurate and complete. In particular, account-related data (transaction confirmations, account statements, account balances, etc.) and information in the public domain, e.g. exchange prices or exchange rates, shall not be binding.
The FrontFanz Platform may be the target of malicious cyberattacks (e.g. phishing, man-in-the-middle, hijacking, deny of service, spoofing, injection, …) or may contain exploitable flaws in its underlying code or its software and hardware environment, which may result in inaccessibility of the FrontFanz Platform, in security breaches, in information disclosure, or in the loss or theft of the Digital Currencies and Tokens supported.
The "Issuer" is not liable, not even in the case of negligence, for damage or consequential damage arising from or in connection with access to or use of the FrontFanz Platform or the impossibility of access or use. Furthermore, the "Issuer" excludes any liability to the extent permitted by law in connection with the purchase, holding, sale or other disposal of FANX Tokens.
Sales documents or agreements for the purchase of Tokens from the "Issuer" and this document are not intended to provide investment advice or any other form of decision-making and do not constitute financial, legal, tax and/or other advice. These documents do not replace the qualified advice required prior to any purchase decision, in particular with regard to all associated risks. No investment or other decisions should be made based on these documents.
Please check the White Paper and website before contacting our support team. If you have general inquiries or comments about this Risk Disclosure, please contact us using the information below:
2nd Floor, Ellen L. Skelton Building, Fishers Lane, Road Town, VG 1110.