# Risks

Purchaser of BTL token may lose all value that he / she spent purchasing BTL token. If BTL token is purchased, the purchase cannot be refunded. There are not guarantee that the utility of the BTL token will be delivered.

Reader of this white paper should carefully consider each of the following risks before deciding to participate in the BTL token sale. To the best knowledge of the BTL token issuer, all material risks in making an informed decision if to participate in the BTL token sale are listed below. If any of the following risks develops into actual events, it may have adverse consequences on the BTL token. This may also result in losing all or part of BTL token value.

The most material types of risks that the issuer of the BTL token is aware of at the date of publishing of the white paper are listed below. However, there may be other types of risks that are yet unknown to the issuer, and which may have equally significant adverse impact to the BTL token and / or individual objectives based on which the purchaser of BTL token makes a decision of purchasing the BTL token, if materialized.&#x20;

The reader of this white paper is urged to acknowledge himself / herself with the risks listed below before deciding if to purchase BTL token. Moreover, reader should seek advise from his / her professional consultants (such as practicing in the field of law, tax, investments, accounting, audit and / or other) to determine other types of risks that may be relevant for the BTL token and / or individual objectives based on which the purchaser of BTL token makes a decision of purchasing the BTL token. Distributor and / or Company assumes no liability if the objectives disclosed in the white paper and / or other objectives specific to the purchaser of BTL token are not met due to materialization of any of the risks, regardless of if the relevant risk is disclosed in the white paper or not.&#x20;

**READER OF THE WHITE PAPER SHOULD ENGAGE IN BTL TOKEN SALE ONLY IF HE / SHE COMPLETELY UNDERSTANDS AND ACCEPTS RISKS RELATING TO TOKEN SALES AS THERE ARE MANY RISKS FACTOR CONTRIBUTING TO THE OVERALL LEVEL OF RISK OF BTL TOKEN SALE. READER OF THIS WHITE PAPER CONFIRMS THAT THE READER ACKNOWLEDGED HIMSELF / HERSELF WITH THE RISK DISCLOSURE BELOW AND THAT HAVING CONSIDERED THE MATERIAL IMPACT THESE RISKS MAY CAUSE TO THE BTL TOKEN, ALSO HAVING CONSIDERED HIS / HER INDIVIDUAL CIRCUMSTANCES, WHICH INCLUDES, AMONGST OTHERS, FINANCIAL SITUATION, READER OF THE WHITE PAPER DECIDED THAT THESE RISKS RELATING TO THE BTL TOKEN ARE ACCEPTABLE.**&#x20;

**Risk of loss.** Investments in BTL token may not result in a useable or valuable token and purchaser of BTL token may lose the entire value of investment.

**Technology risk.** BTL utility tokens are created for developing a network that is based on a blockchain technology. Although blockchain technology is developing, the use of it is still experimental. There is no guarantee that BTL tokens will work in an uninterrupted state. Use of developing and experimental technology exposes BTL token owners to the risk that yet unknown circumstances relating to the technology may have adverse impact to the BTL token.&#x20;

**Underlying protocol failure risk.** BTL utility token will work on the protocol followed by Ethereum. Therefore, BTL token relies on the proper functioning of the underlying Ethereum protocol. Such issues such as breakdown, forking, system failures abandonment or malfunction of this protocol or newer technologies could introduce new risks for the underlying blockchain which may have an adverse effect on BTL tokens.

**Cybercrime risk.** Acquiring tokens is subject to the risk of cybercrime. Although it is not very likely a blockchain will be hacked, there is however a risk for hacks of other software that exists outside blockchain, including, but not limited to, applications such as browsers, websites or software programs. Such hacks may lead to a material loss of value and / or utility of BTL token.&#x20;

**Risk of governance failures.** BTL tokens do not grant the contributors with any governance rights. All governance decisions will be made by the issuer of the BTL token and its associated parties. Issuer of the BTL token will not consult or engage with any contributors in any case by the issuer of the BTL token. BTL token and its utility may be innovative, therefore BTL token and the network may be governed by persons who have limited experience in managing similar or identical products. Governance may have material impact on the BTL value and utility.&#x20;

**Risk of failed project.** BTL token sale or the BTL token itself may be partially or fully abandoned, or the BTL token may need to be restructured for a variety of reasons. These reasons, amongst others, stipulated in this risk disclosure, may render in the BTL token being commercially or technologically unsuccessful.&#x20;

**Risk of uncertainty.** As stipulated herein, this white paper contains certain forward-looking statements which are subject to uncertainty. Reliance on future-looking statements involves knowns and unknown risks and uncertainties.

**Risk of no-supervision.** BTL token is a utility token, therefore BTL token sale does not follow disclosure requirements usually applicable to securities. Also, unregulated contributions for BTL token are not subject to any of the requirements applicable to regulated financial services. Therefore, this whitepaper should never meet specific standards that are applicable for offering of securities or provision of any financial services. The status of regulation applicable for utility tokens (such as BTL token) does not put BTL token within any independent supervision.&#x20;

**Regulatory risk.** Laws governing blockchain technology are still in their early stages of developments. Therefore, there is a risk that BTL could fall under different regulatory regime in the future, which may also have an adverse impact to BTL token as the new regulations or the amended ones can degrade BTL token or its utility.&#x20;

**Risk of no governmental protection.** BTL token does not represent deposits and therefore it does not fall under any deposit protection scheme. If the issuer of BTL token was declared insolvent, BTL token will suffer significant decrease in value or utility. Therefore, any value contributed when acquiring BTL tokens may become worthless.&#x20;

LEGAL CONSIDERATIONS

**ISSUER OF THE BTL TOKEN RECOMMENDS SEEKING ADVISE FROM PROFESSIONAL ADVISORS OR EXPERTS FOR GUIDANCE BEFORE PARTICIPATING IN THE BTL TOKEN SALE. BTL TOKENS ARE NOT SHARES OR SECURITIES OF ANY TYPE. THEY DO NOT ENTITLE OWNER OF BTL TOKEN TO ANY OWNERSHIP OR OTHER INTEREST IN THE ISSUER OF BTL TOKEN. BTL TOKEN IS A MEAN BY WHICH OWNER OF BTL TOKEN MAY BE ABLE TO UTILISE CERTAIN SERVICES AND PRODUCTS THAT ARE YET TO BE DEVELOPED. THERE IS NO GUARANTEE THAT THE UTILITY OF THE BTL TOKEN OR THE SERVICES OR PRODUCTS DESCRIBED IN THIS WHITE PAPER WILL BE DELIVERED.**&#x20;

**PLEASE READ THE ENTIRETY OF THIS SECTION CAREFULLY BEFORE DECIDING IF TO PARTICIPATE IN BTL TOKEN SALE. PARTICIPATION IN BTL TOKEN SALE SHALL BE UNDERSTOOD AS ACCEPTANCE OF LEGAL CONSIDERATIONS STIPULATED IN THIS SECTION.**&#x20;

**Risks**. Anyone interested in purchasing BTL tokens should consider various risks prior to making any kind of decision in respect of the BTL token sale. Risks that the issuer of BTL token considers as the most material are disclosed in this white paper. Information contained in this white paper does not however necessarily identify, or claim to identify, all the risk factors connected with the issuer of BTL token, its business platform that is yet to be developed, BTL tokens, BTL token sale or any future token functionality.

**BTL token is utility token**. BTL token is a utility token, and it was intended for it be utility token, and it does not in any way represent any shareholding, participation BTL token is not a security. Purchaser of BTL token will not be granted with any rights attributable to any securities and such person should not expect receive any of such rights. BTL token may only be utilised on the Bitlocus platform, and ownership of BTL token carries no rights, express or implied, other than the right to use BTL token as a means to enable usage of an interaction within the Bitlocus platform. Therefore, nothing in this white paper should be construed as either an offer to sell or a solicitation of an offer to purchase or sell any securities. This white paper does not constitute the offering of a security.&#x20;

Although BTL token was created as a utility token without any features of any securities, blockchain is a developing industry, therefore there is inevitably a degree of uncertainty with relation to BTL token as it is with any token sale. Considering the rapidly changing regulatory environment, there is always a risk that BTL utility token may fall under applicable securities regulations, including, but not limited to, securities registration requirements. Given this regulatory ambiguity, there is a risk that BTL utility token will be regarded as a security in the future due to regulatory developments.&#x20;

**Token sale is not regulated.** BTL utility token sale is conducted as an unregulated exchange of values that are represented cryptographically. Token sale includes developing and technologies, business models and software that may or may not achieve the objectives listed in the white paper.&#x20;

**Licences/approvals and jurisdictions**. Bitlocus company and its platform operates and intends to continue operating in full compliance with applicable laws and regulation in all jurisdictions where it plans to provide services to its clients. To achieve this goal, Bitlocus will continue to get all the relevant licences and approvals, and will not serve clients in jurisdictions where it does not have the licenses and approvals needed. This results in one or more of the platform features not available in some jurisdictions.

**Forward-Looking Statements**. The statements contained herein may contain certain forward-looking statements relating to BTL token that are based on the beliefs of the issuer of the token as well as certain assumption, estimates and other judgements made by and information currently available to the issuer of the token. Such words as “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “seek”, “should”, “will”, “would” and similar expressions, when used herein, should be considered as forward-looking statements. These forward-looking statements may include, amongst others, statements relating to the future developments of the BTL token, its features and / or functionality, future developments, trends, and conditions in the market. Forward-looking statements reflect issuer’s views and beliefs with respect to future events at the time forward-looking statements were made and therefore no future-looking statement should be read and understood as guarantee of future performance or development. Actual results and events may differ materially from information contained in the forward-looking statements as a result of a number of factors. Organizer of token sale does not intend to update or otherwise such forward looking statements. As a result of these and other uncertainties and assumptions, forward-looking events and circumstances discussed herein might not occur in the way it is indicated herein, or at all. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements in making any personal decision.  &#x20;

**No advice**. Information contained in this white paper does not comprise any advice by the issuer of the BTL token, or any recommendation to any recipient of the information contained in this white paper, by the virtue of any participation in the Token Sale or otherwise. Reader of this white paper should only purchase BTL token if you have substantial technical knowledge and understand the specifics of blockchain, DeFi in general and BTL token specifically. Reader of the white paper should conduct careful and thorough analysis of the white paper and BTL token before deciding if to purchase BTL token. &#x20;

&#x20;No communication or information provided in this white paper is intended as, or shall be considered or construed as, investment advice, financial advice, trading advice, or any other sort of advice. Reader of the white paper is solely responsible for determining whether participation in BTL token sale is appropriate according to individual circumstances and risk tolerance.

**Reliance on third party information.** Statements included in this white paper contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.

**Governing law and disputes**. BTL token is issued by Bitlocus OÜ (company code: 16306899) and offered in Estonia. BTL token is subject to the law of Estonia. Any dispute or controversy arising from or under the token sale shall be resolved in courts of Estonia.&#x20;
