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05-Risk-Notification

RISK DISCLOSURE STATEMENT

1. Introduction

1.1. This Risk Disclosure Statement (hereinafter referred to as the "Statement") has been prepared by LLC "JetUP" (hereinafter referred to as the "Company") in accordance with applicable Georgian legislation and is intended to inform users of the JetUP platform (hereinafter referred to as the "Platform") about the risks associated with Platform use and investment activities conducted through it.

1.2. The purpose of this Statement is to provide Platform users with information about potential risks associated with investing in projects listed on the Platform, as well as the use of digital assets and blockchain technology.

1.3. Prior to using the Platform or making any investments, users must carefully review this Statement and assess their willingness to accept the described risks.

1.4. This Statement is not exhaustive and does not disclose information about all risks associated with investing and Platform use. Additional risks not described in this Statement may arise during Platform operations.

2. General Investment Risks

2.1. Capital Loss Risk: Investing through the Platform involves high risk. Users may lose part or all of their investment. Never invest more than you can afford to lose.

2.2. No Guarantees: The Company does not guarantee any return on investments made through the Platform. Past performance is not indicative of future results.

2.3. Illiquidity Risk: Investments in early-stage projects may be illiquid. The ability to sell or transfer your investments may be limited or non-existent.

2.4. Dilution Risk: In the event of additional funding rounds, an investor's project stake may be diluted.

2.5. Bankruptcy Risk: Companies you invest in may go bankrupt, potentially resulting in a total loss of investment.

2.6. Dividend Risk: Many startups and early-stage companies do not pay dividends. Investment returns may only be realized through the sale of company shares.

2.7. Key Person Risk: Many startups' success depends on their founders and key employees. The departure of these individuals may negatively impact company development and your investment value.

2.8. Information Risk: Information about projects presented on the Platform may be incomplete or inaccurate, potentially leading to incorrect investment decisions.

3. Digital Assets and Blockchain Technology Risks

3.1. Volatility: Digital asset values can be extremely volatile. Rapid price fluctuations may result in significant financial losses over short periods.

3.2. Technological Risks: The Platform utilizes blockchain technology, which may be subject to technical failures, code errors, or hacking attacks. This may result in loss or theft of digital assets.

3.3. Access Loss Risk: Loss of access to your wallet or private keys may result in permanent loss of access to your digital assets.

3.4. Regulatory Risks: The legal status of digital assets and blockchain technologies may change in the future. New laws or regulations may restrict or prohibit the use of certain digital assets.

3.5. Fork Risk: In the event of a blockchain fork affecting your digital assets, uncertainty may arise regarding the value and status of your assets.

3.6. Smart Contract Risk: Smart contracts used on the Platform may contain errors or vulnerabilities that could result in incorrect contract execution or asset loss.

3.7. Scalability Risk: Blockchain networks may encounter scalability issues, potentially resulting in transaction processing delays or increased fees.

3.8. Interoperability Risk: Interactions between different blockchains or protocols may lead to unforeseen issues affecting the security or functionality of your digital assets.

4. Platform-Specific Risks

4.1. Operational Risks: The Platform may experience technical failures, software errors, or infrastructure problems that could result in transaction processing delays or temporary service unavailability.

4.2. Cybersecurity Risk: Despite advanced security measures, the Platform may be subject to hacking attacks, potentially resulting in user data or asset loss.

4.3. User Error Risk: Incorrect Platform use, including errors in entering transaction addresses or amounts, may result in irreversible loss of funds.

4.4. Information Accuracy Risk: Information about projects and investment opportunities presented on the Platform may be incomplete, inaccurate, or outdated, despite the Company's verification efforts.

4.5. Conflict of Interest Risk: Conflicts of interest may arise between various Platform users, as well as between users and the Company, potentially affecting investment decisions.

4.6. Terms Modification Risk: The Company reserves the right to modify Platform usage terms, which may affect your investments or service usage capabilities.

4.7. Discontinuation Risk: There is a risk that the Company may cease Platform operations, potentially affecting your investments and ability to manage them.

4.8. Access Restriction Risk: The Company may restrict or terminate your Platform access for terms of use violations or regulatory requirements.

4.9. Compatibility Risk: Platform updates may result in incompatibility with certain devices or browsers, potentially limiting your service access.

5.1. Legislative Change Risk: Legal regulation of cryptocurrencies, tokens, and investment platforms is evolving. Legislative changes may significantly affect Platform operations and your investment status.

5.2. Tax Risks: The tax status of digital asset operations and Platform investment income may be uncertain or change in the future. Users are responsible for all applicable tax payments.

5.3. KYC/AML Compliance Risk: Failure to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements may result in account blocking and asset freezing.

5.4. Cross-Border Transaction Risk: Investments in projects from other countries may be subject to various jurisdictions' laws, creating additional legal risks.

5.5. Activity Restriction Risk: Regulatory authorities may restrict or prohibit Platform operations in certain jurisdictions, potentially affecting your investments.

5.6. Litigation Risk: The Company or projects you invest in may become involved in legal proceedings, potentially negatively affecting your investment value.

5.7. Intellectual Property Risk: Projects presented on the Platform may infringe third-party intellectual property rights, potentially leading to legal disputes and investment value loss.

5.8. Securities Law Compliance Risk: While tokens issued on the Platform are not positioned as securities, regulatory authorities may classify them as such, potentially resulting in legal consequences.

6. Project-Specific and Tokenization Risks

6.1. Valuation Risk: Early-stage project valuation may be difficult and subjective, potentially resulting in overvaluation or undervaluation of investment opportunities.

6.2. Business Plan Execution Risk: Projects may fail to achieve stated objectives or execute their business plan, potentially resulting in investment value loss.

6.3. Competition Risk: Successful projects may face strong competition, potentially negatively affecting their market position and your investment value.

6.4. Technology Risk: Projects may be based on new and unproven technologies that may prove ineffective or become obsolete.

6.5. Tokenization Risk: Asset tokenization processes may contain errors or vulnerabilities, potentially resulting in misalignment between real assets and their digital representation.

6.6. Limited Information Risk: Early-stage project information may be limited, complicating comprehensive investment opportunity analysis.

6.7. Platform Dependency Risk: Tokenized assets may depend on JetUP Platform functionality, and Platform issues may affect these assets' value and liquidity.

6.8. Asset Representation Risk: There is a risk that tokenized assets may not fully correspond to stated real assets or rights.

6.9. Limited Influence Risk: Token ownership may not provide the same rights and project management influence as traditional investment forms.

7. Final Provisions

7.1. Risk Acceptance: By using the JetUP Platform, you acknowledge that you fully understand and accept all risks associated with Platform investment and digital asset use.

7.2. No Guarantees: JetUP Company provides no guarantees regarding future profitability or success of projects presented on the Platform. All investment decisions are made by users independently and at their own risk.

7.3. Decision Responsibility: Users bear full responsibility for their investment decisions and Platform actions. JetUP Company is not liable for any losses incurred through Platform use or investment in presented projects.

7.4. Diversification Recommendation: Users are strongly advised to diversify their investments and not invest more in Platform projects than they can afford to lose.

7.5. Independent Analysis Requirement: Users are advised to conduct their own analysis and research of projects before making investment decisions, not relying exclusively on Platform-provided information.

7.6. Professional Consultation: Before making significant investments, users are advised to obtain independent financial, legal, and tax professional consultation.

7.7. Statement Updates: JetUP Company reserves the right to update this Risk Disclosure Statement at any time. Users agree to regularly review the current Statement version on the Platform.

7.8. Version Priority: In case of discrepancies between different language versions of this Statement, the English version shall prevail.

7.9. Acknowledgment: By continuing to use the JetUP Platform, you confirm that you have read, understood, and agree to the provisions of this Risk Disclosure Statement.

Effective Date and Version Control

Last Updated: November 20, 2024 

Version: 1.0

 

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