10. Risk Warning

The DxChain Foundation believes that there are many risks in the development, maintenance and operation of DxChain, many of which are beyond the control of the DxChain Foundation. You acknowledge and agree that numerous risks are associated with purchasing DX, holding DX, and using DX for participation in the DxChain Network. In the worst scenario, this could lead to the loss of all or part of the DX which had been purchased.

10.1 Uncertain Regulations and Enforcement Actions

The regulatory status of DX and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of cryptocurrencies has become a primary target of regulation in all major countries in the world. DX may be prohibited from trading or holding according to local regulatory requirements and could negatively impact DX and/or the DxChain Network in various ways.

The Foundation (or its 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.

Competitors

Various types of decentralized applications are emerging rapidly, 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 DX and/or the DxChain Network and attempt to recreate similar facilities. The DxChain Network may be required to compete with these alternative networks, which could negatively impact DX and/or the DxChain Network.

Loss of Talents

The development of the DxChain Network depends on the continued cooperation of the existing technical team and expert consultants, who are highly knowledgeable and experienced in their respective sectors. Further, stability and cohesion within the team are critical to the overall development of the DxChain Network. There is the possibility that conflict within the team and/or departure of core personnel may occur, resulting in a negative influence on the project in the future. The loss of any member may adversely affect the DxChain Network or its future development as well.

Failure to Develop

There is the risk that the development of the DxChain Network 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, cryptocurrency or DX, unforeseen technical difficulties, and shortage of development funds for activities.

Security Weakness

Hackers or other malicious groups or organizations may attempt to interfere with DX and/or the DxChain Network in various 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 Foundation or its affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of DX and/or the DxChain Network, which could negatively affect DX and/or the DxChain Network.

The future of cryptography and security innovations are highly unpredictable, advances in cryptography or technical (including without limitation development of quantum computing), could present unknown risks to DX and/or the DxChain Network by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.

10.2 Other possible risks

Risk of Unauthorized Claim of DX

Anyone who has access to the registered email address or registered account by cracking the password of the DX holder will be able to obtain the DX token maliciously. Accordingly, the DX tokens may be sent to other people's addresses irrevocable and irreversible. Each DX holder should take measures such as the following to maintain the security of its registered account properly: (i) Use complex and high-security passwords; (ii) Do not open or reply to any fraudulent emails; (iii) Keep personal information confidential.

Market Risk

The value of DX largely depends on the market development and user acceptance of the DxChain platform. DxChain is not expected to be popular or widely used in a short period. In the worst case, DxChain may be marginalized for a long time and attract only a small number of users. The lack of users may lead to increased price fluctuations in the DX market and thus affect the long-term development of DxChain. DxChain Foundation is not responsible for stabilizing or affecting the market price of DX.

Liquidity Risk

The circulation and transactions of DX in the market are not the pursuits of the DxChain Foundation. The transactions of DX are only based on the consensus reached by relevant market participants on its value, no one is obliged to exchange any DX from the DX holder, and no one can guarantee the liquidity or market price of DX.

Price Fluctuation Risk

If traded on the open market, the price of cryptocurrencies usually fluctuates sharply and often occurs in the short term. The price may be denominated in Bitcoin, Ethereum, U.S. dollars or other legal currencies and may caused by market forces (including speculative trading), regulatory policy, technological innovations, and other factors. The DxChain Foundation is not responsible for any DX transactions in the secondary market, nor is it obligated to stabilize the price fluctuations of DX. The DX trader shall solely bear the risks involved in the DX transaction price.

Risk of Insufficient Information Disclosure

As at the date hereof, the DxChain Network 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 Lite Paper contains the most current information relating to the DxChain Network, it is not absolutely complete and may still be adjusted and updated by the DxChain team from time to time. The DxChain team has no ability and obligation to keep holders of DX informed of every detail (including development progress and expected milestones) regarding the project to develop the DxChain Network; hence, insufficient information disclosure is inevitable and reasonable.