4.2. Technological Risks

Risk of errors or security flaws allowing hacking or theft of the issuer's data

The specific blockchain technology used to register 4IR Tokens, may it be Ethereum or 4IR Blockchain Protocol, may be subject to specific weaknesses, which make them possibly targets for specific cybersecurity threats. Hackers or other malicious groups or organizations may identify and exploit these specific weaknesses, causing the blockchain to malfunction or function in an unexpected or unintended manner. For example, hackers may obtain control of the transaction validation process implemented on the blockchain used for the Digital Platform, thereby preventing the proper functioning of the blockchain.

The malfunction, unintended or unexpected functioning of the blockchain on which 4IR Tokens are based may have adverse consequences on the 4IR Tokens or their transfer. For example, during peaks of activity, "BlockchainValley.me" may not always function properly. It may result in the loss, destruction, theft or hacking of the 4IR Tokens and may cause the 4IR Tokens' holders to lose all or part of the value of their investment.

Risk relating to the medium storing the Subscriber's private key, especially its loss or theft

Based on the blockchain technology used to register the 4IR Tokens, 4IR Tokens' holders are required to use an appropriate digital wallet, with a private key, in order to receive and transfer the 4IR Tokens. BlockchainValley will not store any private keys or serve as a custodian. Risks may arise for holders due to partial or inaccurate information regarding the details of their wallet. It may have adverse consequences on the registration of the 4IR Tokens or their transfer. It may cause the holders to lose all or part of the value of their investment.

Risks may also result from the use of wallets, their compatibility with the blockchain used to register the 4IR Tokens, their appropriateness for the purpose of the issuance and transfer of the 4IR Tokens, the cyber security that they provide, the attacks that could affect them and which might potentially result in the loss, destruction, theft or hacking of the 4IR Tokens.

The Subscriber should follow the best security practices and will be solely responsible for safeguarding their wallet details as well as ensuring they are dealing with the correct contract address. When using any wallet service, there is a risk it could be hacked, or the information could be stolen.

Based on the specific blockchain technology used to register the 4IR Tokens and the conditions governing such registration, holders are solely responsible for the secure storage of private keys for their wallet(s). The loss or theft of a private key may result in the loss of all 4IR Tokens assigned to the wallet and holders may no longer be able to access and dispose of the 4IR Tokens. In this situation, this means that holders may effectively lose ownership of the 4IR Tokens associated with the wallet and a total loss of their investment.

Any third party which gains access to one or more of holders’ private key(s), including by gaining access to login credentials of a hosted wallet service which the Subscriber uses, may be able to misappropriate the Subscriber’s 4IR Tokens.

Risks related to the asset monitoring and safeguarding system

The eWallet of BlockchainValley used to hold all digital assets is sibject to the same mishaps of any digital instrument.

There is a general risk any of our partners dealing with custody or monitoring may go bankrupt, be hacked, breach their obligations or any other unforeseen mishaps they might be subject to.

Risks related to the lock-up period for the Presale

After the end of the Presale Offer, 50% of the 4IR Tokens will be locked up for a 12 months period and distributed at a rate of 25% per month after the lock-up period. The Subscribers will therefore have all 4IR Tokens in their possession 16 months after the end of the Offer. In the context of this 16-month period, the 4IR Tokens will be subject to a risk of loss, destruction, theft or hacking and may cause the Subscribers to lose all or part of the value of their investment.

Risks related to the distributed ledger technology on which the tokens are registered and the platforms on which the tokens can be exchanged

During the Presale Offer, 4IR Tokens will be structured as an ERC20 token with its smart contract based on the Ethereum blockchain. Therefore, any failure or unforeseen function of the Ethereum protocol could cause 4IR Tokens or the Digital Platform to fail or dysfunction as well.

As the 4IR Tokens' smart contract will be based on Ethereum, and the Ethereum blockchain is an open-source software, there is a risk that this smart contract may have bugs or vulnerabilities. If this situation occurs, there is no guarantee of a remedy or compensation to be provided by Blockchain Valley SAS nor any other entity affiliated.

The same may happen when tokens are listed and launched in other chains such as Coinbase layer 2, Avalanche, BSC, Polygon, etc during this period of sales and distribution.

Risks may also arise from a change in Ethereum

This includes the proposed changes in Ethereum consensus mechanism, like the one made at the end of 2022 with a shift from “Proof of Work” to “Proof of Stake”, and/or to the maturity of the computer software programming languages used in connection with Ethereum. A change to Ethereum protocol may also require all nodes or Users to upgrade to the latest version of the protocol software or create two versions of the protocol going forward.

The governance of Ethereum may also allow to roll back certain transactions registered therein. Such changes or decisions may result in a variety of adverse consequences on the registration of the 4IR Tokens or their transfer. It may result in the loss, destruction, theft or hacking of the 4IR Tokens and may cause the Subscribers to lose all or part of the value of their investment.

If 4IR Tokens are listed on any exchange, BlockchainValley can’t give any guarantees regarding their services, and the same risks regarding hacking and theft of data may exist. This may cause the 4IR Tokens' holders to lose all or part of the value of their investment.

Risks related to the future 4IR Blockchain Protocol and the switch thereto

The development of the 4IR Blockchain Protocol in the future is uncertain. In addition, the conditions governing 4IR Blockchain Protocol and the switch from Ethereum remain uncertain as well and may evolve from the description provided in this document. If and once developed, 4IR Blockchain Protocol may have bugs or vulnerabilities.

Once the switch is made from Ethereum blockchain to 4IR Blockchain Protocol, the 4IR Token will no longer be structured as ERC20 tokens. This new smart contract may also have vulnerabilities. Any failure or unforeseen function of the protocol could cause the 4IR Token or BlockchainValley Digital Platform to fail or malfunction as well. If this situation occurs, there is no guarantee of a remedy or compensation to be provided by Blockchain Valley SAS nor any other entity affiliated.

Risks related to identity theft by scammers

The Subscriber must exclusively use our official communication channels and onboarding Digital Platform to subscribe our 4IR Tokens that are explicitly stated in this document.