4.1. Economic Risks

Risk of partial or complete loss of the investment

The digital assets market prices are speculative and fluctuate significantly. The development of BlockchainValley, globally or partially, may be affected by numerous factors and remain uncertain. The value of 4IR Tokens won’t be guaranteed and there is a risk that Subscribers may lose their contribution partly or entirely. To mitigate these risks, the issuer put in place the lock up and vesting mechanisms respectively described in Section 5.7.4 ""Token Lock up" and in Section 5.7.1 “Token dilution and release”.

Currency exchange risk, including to euro, USD or any foreign currency, borne by the Subscriber

The Subscriber withstands the risk of loss of value that can occur when exchanging tokens into fiat money. It might be impossible to convert 4IR Tokens against currencies with legal tender or any other asset. In particular, the Subscriber withstands this risk in the context of the 16-month period after the end of the Presale Offer due to the 4IR Tokens Lock Up Delivery system in which 50% of the 4IR Tokens will be locked during a 12-month period after the end of the Public Offer and distributed to the Subscribers at a rate of 25% per month after this period (see Section 5.7.4 " Tokens Lock Up").

Risk related to valuation of the tokens

The 4IR Tokens have no history and thus face significant uncertainties around their valuation. This valuation may be highly dependent on the demand for the decentralized applications supported by BlockchainValley, which is unproven and uncertain, and the reliability of technology underlying BlockchainValley, which is untested. The value ascribed to the 4IR Tokens by its holders may fluctuate based in part on the number and scope of additional features that may be provided to holders of 4IR Tokens in the future, and the platforms on which the 4IR Tokens may be listed.

Risk of lack of liquidity for the tokens

The Subscriber withstands this risk of liquidity of the 4IR Tokens in the context of the 16-month period after the end of the Presale Offer due to the 4IR Tokens Lock up Delivery system in which 50% of the 4IR Tokens will be locked during a 12-month period after the end of the Offer and distributed to the Subscribers at a rate of 12.5% per month after this period (see Section 5.7.4 "Token Lock up").

In addition, 4IR Tokens may have no value or no liquidity as Subscribers may not be able to re-sell the 4IR Tokens they have subscribed, especially if the 4IR Tokens are not listed in a major exchange. Therefore, it may be difficult or impossible to re-sell the 4IR Tokens subscribed. BlockchainValley is not and will not be responsible for the liquidity, transferability and availability of 4IR Tokens or its market value. To mitigate these risks, the issuer will list the 4IR Token on Uniswap, a decentralized exchange on Ethereum, and will also aim to list the 4IR Tokens on a multichain approach on digital assets exchanges after the end of the Presale Offer Period and distribution of all tokens to Subscribers.

Risk due to the lack of a secondary market

There are no warranties that 4IR Tokens will be exchangeable for other digital assets and/or fiat money. 4IR Tokens holders may have difficulties liquidating their tokens or may not be able to liquidate if a secondary market doesn’t develop.