⚠️Risk Factors
Last updated
Last updated
The purchase of OBS tokens (hereinafter referred to as the "Token" or "Tokens") may be associated with a high degree of risk. To protect the interests of Token's potential purchasers, OpenBiSea team conducted an analysis of such potential risks and outlined the result of this analysis in this chapter of the Whitepaper.
Important: the list of risk factors described below is not exhaustive. In addition to the risks disclosed in this Whitepaper, there may be other risks which OpenBiSea team at present cannot reasonably forecast.
These risks can materialize in other forms of risk than those specified here. Prior to acquiring Tokens, each potential Token purchaser is advised to carefully review all the information and assess the risks of such purchase, including but not limited to, the risks set forth in this Whitepaper and to decide upon purchase of Tokens based on such assessment.
Risks of the blockchain.
Tokens are released on the Binance Smart Chain blockchain. In this regard, any malfunction of the Binance Smart Chain protocol may lead to a restriction in use of Tokens, and / or to the fact that Tokens or the platform will function in an unforeseen manner.
Risk of hacker attacks on the platform, smart contracts, or Tokens.
Tokens can be expropriated and / or stolen, by hacking Tokens, or otherwise. Hackers or other groups or organizations may attempt to intervene in a smart contract or Tokens in various ways, including, but not limited to virus attacks, DDOS attacks, concerted attacks, network attacks, and denial of service attacks, and others. In addition, since the Binance Smart Chain platform is based on open source software, there is a risk that Binance Smart Chain smart contracts may contain intentional or unintentional errors or shortcomings that could adversely affect Tokens or lead to loss of Tokens, or loss of access or control Tokens. In the event of such an error or weakness of the software, there can be no remedy, and tokens owners are not guaranteed any compensation.
Risk of hacker attack on the computer of token holder, or loss of passwords / of private keys.
Purchased Tokens can be stored by the token holder in her/his digital wallet or safe, for which a password, a digital key or a combination of digital keys is required. Accordingly, the loss of the necessary keys associated with such a digital wallet or safe, can lead to loss of access to Tokens. In addition, any third party that gets access to such passwords and / or private keys (by way of getting (through hacking, or negligence of token holder) access to login credentials of token holders' hosting-wallet, or otherwise), will be able to use Tokens of the token holder. OpenBiSea assumes no liability for such losses.
Risk of using new technologies, and changes in technology in the future.
Tokens and blockchain are fairly new and relatively untested technologies. Although at the moment they have largely proven their efficiency, reliability and security, there is no guarantee that in future these technologies do not fail in any way. Further, as technological progress develops, flaws can be found in these technologies, which flaws will prevent their functioning in the way that they function at the moment. Finally, there is no guarantee that these technologies will be compatible with any new technologies invented in future. In the event of such incompatibility, use of Tokens and blockchain can be found unreasonable and stopped.
Risk of incompatibility of the crypto wallet service.
An electronic crypto wallet or wallet service provider that the token holder has chosen / will choose for obtaining and storing Tokens, must be technically compatible with Tokens. Failure to comply with this condition may lead to the fact that the token holder will not be able to get access to her\his Tokens. Token holders must independently determine the fact of the compatibility of the crypto wallet she/he registered with the Tokens. OpenBiSea assumes no responsibility for any errors related to wrong determination of the above fact.
Risk of regulatory uncertainty.
Regulatory status of cryptographic tokens, digital assets and blockchain technology, is unclear or not defined in many jurisdictions. It cannot be excluded that such technologies, and, in particular, Tokens, will in future become subject to one or more (adopted or new) interpretations of laws (or other regulations), court judgments, or actions by various regulatory bodies around the world, including, but not limited to, the imposition of restrictions on the use or possession of digital tokens, such as Tokens. Such changes can adversely affect Tokens in various ways, including, for example, by determining that Tokens are regulated financial instruments that require registration or compliance with other legal requirements and procedures. OpenBiSea may stop distributing Tokens, developing a platform or terminating operations in a particular jurisdiction if the actions of regulatory authorities of the relevant jurisdiction make it illegal or not commercially viable to proceed.
Risk of inability to obtain, maintain or renew licenses and permits.
As of the date of Tokens sale, there are no statutory requirements requiring OpenBiSea to obtain any licenses and permits necessary for the sale of the Tokens, but the risk that such legislative requirements may be enacted in the future cannot be ruled out. In this event, possibility of sale and further use of Tokens will depend on the procedure of issuing such licenses and permits, and on compliance with their terms. We cannot exclude that requirements of the law will be technically or economically unachievable for OpenBiSea. OpenBiSea may stop distribution of Tokens, develop a platform or terminate operations in a particular jurisdiction in the event of economic, technological or other inability to obtain the required licenses or permits under such jurisdiction.
Risk of governmental action.
The industry of blocking and reversing tokens is new, and simply by virtue of novelty can be subject to increased supervision and regulatory control, including investigations or enforcement actions. There can be no guarantee that the government will not study the activities of the parties. All this can be investigated, which in turn can have a significant negative impact on Tokens and / or platform development.
Risk of failure in development.
It cannot be excluded that for various reasons, including but not limited to, for reasons of insolvency of business or technological strategies or business arrangements, technological problems, emergence of new technologies, etc, that the model that OpenBiSea developed and described in this Whitepaper, will not achieve the desired functionality, be inoperative, or work in a way different from what developers designed it for. Also, we cannot exclude the risk that for these or different reasons, development and implementation of the model can take longer than OpenBiSea predicts at the moment, and when the model is ready, it will appear to be outdated and/or irrelevant.
Risk of insufficient implementation.
It cannot be excluded that, for various reasons, including, but not limited to, for reasons of insolvency of marketing strategies, external constraints, or competitors' actions, the model developed by OpenBiSea and described in this Whitepaper model may appear to be unpopular and/or unclaimed, lacking use and application.
Risk of dependence on third parties.
Even after the launch, the model developed by OpenBiSea and described in this Whitepaper will rely, wholly or partially, on third parties, for adoption and implementation of certain functions, as well as for continuing its development, maintenance and support. Though above-mentioned third parties are carefully selected by OpenBiSea team, there is no insurance or guarantee that these third parties will do their job properly, or otherwise meet users' needs, and this can have a significant adverse impact on the platform.
Risk of loss of cash.
The project described in this Whitepaper, the model developed by OpenBiSea, the platform being created, as well as any funds collected within the framework of the ICO described, are not insured. In case of failure of the project for any reason, loss of functionality of the Token or platform, there is no private or public insurance representative to whom token holders can apply for reimbursement.
Risk of force majeure.
In the future, there may be extraordinary circumstances that OpenBiSea cannot reasonably anticipate or prevent and that may be subject to restrictions or impediments to the operation of OpenBiSea or Token platform.
