Legal

Trading in Digital Tokens, including Deep Blue Tokens, involves certain risks. This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding, trading, or engaging with Digital Tokens. Risks include, but are not limited to, the following:

1. Market Risk: The market for Digital Tokens, including stablecoins, is still new and uncertain. No one should invest funds in Digital Tokens that they are not prepared to lose entirely. The market for one or more Digital Tokens may move unpredictably, and any Digital Token may lose some or all of its value. This applies to both long and short positions. Participants should be cautious about holding Digital Tokens.
2. Liquidity and Listing Risk: Markets for Digital Tokens have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee of an active market for one to sell, buy, or trade Digital Tokens or related products. Any market for tokens may abruptly appear and vanish. Deep Blue makes no representations or warranties about whether Deep Blue Tokens or any other Digital Token may be traded on any exchange or market at any point in the future, if at all. Any Digital Token is subject to delisting without notice or consent.
3. Legal Risk: The legal status of certain Digital Tokens may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more Digital Tokens constitute property, or assets, or rights of any kind may also be unclear. Participants are responsible for knowing and understanding how Digital Tokens will be addressed, regulated, and taxed under applicable law.
4. Counterparty Risk: Having Digital Tokens on deposit or with any third party in a custodial relationship has attendant risks. These risks include security breaches, risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold their property for any reason.
5. Trading Risk: In addition to liquidity risks, values in any digital token marketplace are volatile and can shift quickly. Participants in any Digital Token market are warned that they should pay close attention to their position and holdings, and how they may be impacted by sudden and adverse shifts in trading and other market activities.
6. Stablecoin Specific Risks: The Deep Blue Token project relies on financial institutions and counterparties to hold funds, cash equivalents, and other assets to back the tokens that are issued and in circulation. These parties have their own policies and may change their view and acceptance of stablecoins at any time. This may result in delays and other barriers to redemption and sale. Digital Token holders should be aware of these risks at all times.
7. Reserve Risks: Assets backing Deep Blue Tokens, including those held in the Reserve, are subject to the risk of loss, theft, insolvency, and governmental and regulatory freezes and seizures. Reserves held at or through financial institutions or intermediaries may be subject to various risks.
8. Valuation Risk: Deep Blue Tokens are backed 100% by Deep Blue's Reserves. Those Reserves are not insured and could be subject to unexpected diminution in value or to governmental and regulatory freezes and seizure. This may result in delays and other barriers to redemption and sale. Deep Blue Tokens are not fiat currency and are not issued, backed, or guaranteed by any government.
9. Technological Risks: The distributed ledger technology that underpins Deep Blue Tokens is still largely untested. There may be flaws in the code or programs that are used to create, transfer or store Deep Blue Tokens. Holders may not be able to access or control their Deep Blue Tokens, and tokens may be lost or stolen due to user error, hacking, or other technological failures.
10. Regulatory Risks: The regulatory regime governing blockchain technologies and cryptocurrencies is uncertain, and new regulations or policies may materially adversely affect the development and the utility of Deep Blue Tokens.
11. Multi-Currency Risks: Deep Blue may issue tokens pegged to different currencies. Each of these tokens may be subject to risks specific to the currency it represents, including but not limited to exchange rate fluctuations, local regulatory changes, and economic conditions in the relevant country or region.

As with all investments, there is a risk of loss in owning Digital Tokens, including Deep Blue Tokens. Token holders should be aware of these risks at all times. This risk disclosure statement is not exhaustive and does not disclose all risks associated with Digital Tokens and Deep Blue Tokens. Investors should carefully assess their financial situation and risk tolerance before trading in Digital Tokens, and should consult with financial and legal professionals before making any investment decisions.

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