Risk Disclosure Statement

Effective Date: Nov 22, 2023

Trading in Digital Tokens carries inherent risks. This risk disclosure statement serves to inform and educate users about the risks associated with holding, trading, or engaging in Digital Tokens through LADT. It's important to note that this statement cannot encompass all possible risks and aspects related to Digital Tokens, but some key risks include, but are not limited to:

Market Risk

The Digital Token market is still relatively new and highly uncertain. Individuals should only invest funds in Digital Tokens or speculate in them if they are prepared to potentially lose the entire investment. The direction of the market, whether it will rise or fall, and the value of specific Digital Tokens are unpredictable. This holds true for both long and short-trading positions. Caution is advised when holding Digital Tokens.

Liquidity and Listing Risk

Digital Token markets vary in terms of liquidity, with some being highly liquid while others may have limited liquidity. Thin markets can lead to increased volatility. There is no guarantee of an active market for buying, selling, or trading Digital Tokens or related products. Additionally, markets for specific tokens may suddenly appear and disappear without prior notice or consent.

Legal Risk

The legal status of certain Digital Tokens can be uncertain, making it unclear whether holding or trading them is legal. Determining whether and how Digital Tokens constitute property, assets, or rights is not always straightforward. Participants are responsible for understanding how Digital Tokens are regulated and taxed under applicable law.

Exchange Risk (Counterparty Risk)

Entrusting Digital Tokens to third parties in custodial relationships carries inherent risks, including security breaches, contractual breaches, and potential loss. Participants should exercise caution when allowing third parties to hold their assets. Digital Token transactions are irreversible, meaning once tokens are sent to an address, there is a risk of permanently losing access to and any claim on those tokens.

Trading Risk

Beyond liquidity risks, the values in digital token markets are highly volatile and can change rapidly. Participants in these markets should closely monitor their positions and holdings, as they can be affected by sudden and adverse shifts in trading and other market activities.

Banking Risk

Projects like LADT rely on financial institutions and counterparties to hold the assets backing the tokens. These parties have their policies and can change their stance on stablecoins at any time. This may lead to delays and other barriers to redemption and sale. Additionally, Reserves held through financial institutions or intermediaries may be exposed to the risk of loss, theft, insolvency, and government or regulatory actions.

Counterparty Risk

Assets supporting digital assets, including LADT Tokens, are exposed to the risk of default, insolvency, inability to collect, and illiquidity.

Valuation Risk

LADT Tokens are fully backed by LADT's Reserves, which are not insured and may experience unexpected value reductions or be subject to government or regulatory actions. This can lead to delays and obstacles in redemption and sale. LADT Tokens are not government-issued or guaranteed. Like all investments, there is a risk of loss associated with owning LADT Tokens. Holders should remain vigilant regarding these risks at all times.