4.3. Risks To The Project

Risks Related To The Project

Risk of failure at launch or of technical and operational development of the project

Although BlockchainValley intends to decentralize development and governance of the Digital Platform, the development of the Digital Platform may depend upon the financial resources and efforts of the Issuer, BlockchainCompany Ltd. and BlockchainValley PTY Ltd.

None of them are under any legal obligation to continue the development of the Digital Platform. There is no guarantee that BlockchainValley will be able to continue as a going concern. There is no commitment towards Subscribers to managers, fostered and technically maintained the Digital Platform. Even if the Offer is completed, BlockchainValley may not be able to launch the Digital Platform as expected and described in this information document due to technical or operational problems.

Risk of a substantial change in the project and in the rights attached to the tokens

The Digital Platform is under development and may go through substantial modifications over time. BlockchainValley intends to adhere to all the specifications described in this information document, however changes may be introduced for any number of reasons, especially with regards to the 4IR Tokens and the prerogatives they offer.

Risk related to the eCompanies activities and behaviors

The activities conducted by the eCompanies as well as the use of the Digital Platform for fraudulent purposes or contrary to the laws and regulations in force (such as the sale of illegal, unsafe or restricted products) represent a regulatory risk. In this context, BlockchainValley could be exposed to pecuniary or administrative sanctions, including the closing of the Digital Platform.

To mitigate these risks, the issuer put in place an onboarding mechanism that restrict access to the Digital Platform and by which the eCompanies will have to follow a specific KYC procedure and questionnaire as described in Section 2.1.7 "eCompany membership".

Risk due to the lack of regular communication by the issuer concerning its project or any event which could have an impact on the project

BlockchainValley will aim to communicate with the Subscribers to the best of its abilities. However, there is a risk there may be malfunctions, errors, misrepresentations, delays or other mishaps in communications related to the project.

Risks due to the lack of visibility concerning the regulations applicable to the Offer in all the jurisdictions in which the tokens will be offered, and the tax treatment applicable to the Subscribers

Regulatory frameworks regarding blockchain technology and digital assets are still developing and have not been harmonized within the European Union or among international jurisdictions. Consequently, different jurisdictions may adopt regulations that affect the blockchain network and the Digital Platform. New regulations or policies are likely to rapidly evolve.

New or changing laws and regulations or interpretations of existing laws and regulations may materially adversely affect the qualification and/or transfer and/or viability of the 4IR Tokens in the future. In addition, failure by the Issuer or other persons involved in the issuance and distribution of the 4IR Tokens 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, or reputational damage.

In any case, Subscribers must conduct their own due diligence and comply with all laws and regulations that apply regarding taxation in their jurisdiction. Depending on the jurisdiction involved, the tax treatment of the 4IR Tokens may be uncertain and there may be adverse tax consequences for Subscribers.

Risks related to new regulatory standards

As of today, the activities of Blockchain Valley SAS do not require any specific license. However, changes in regulation may occur which we cannot foresee and a license may be required. Blockchain Valley SAS cannot guarantee the procurement of said license.