Purchasing and using Scopuly tokens is subject to various known and unknown risks. In addition to the risks set forth below, there are uncertainties and risks that the Scopuly team cannot anticipate. Furthermore, risks can present themselves as unanticipated variations or combinations of the risks described in this White Paper.
Please note that, unlike accounts held at banks or other financial institutions, funds held using Scopuly tokens or Stellar blockchain are uninsured. In the event of total or partial loss of tokens or their value, there is no public insurer.
Stellar protocol
Scopuly tokens and network are based upon the Stellar protocol – a technology that is still new and insufficiently tested. Therefore, any malfunction, breakdown, or stoppage of the Stellar protocol may disrupt the operations of the Scopuly network or its tokens.
Legal regulations
The legal status of cryptographic tokens and blockchain technology in many jurisdictions remains undefined. The functioning of the Scopuly network and its tokens could be negatively impacted, impeded, or even made impossible in certain or all jurisdictions by regulatory actions end inquiries, including (but not limited to) the possession or use of Scopuly tokens.
Hacker attacks and system weaknesses
Hackers may attempt an attack on the Scopuly network or tokens in a number of ways, including malware attacks, DDoS attacks, spoofing, smurfing, consensus-based attacks, etc. In addition, there is a risk that the Scopuly team or a third party may intentionally or unintentionally introduce vulnerabilities or bugs into the source code of Scopuly, which can negatively impact the functioning of the network and cause the loss of Scopuly tokens.
New technology
Development of new technology, such as quantum computers, and advances in cryptography can represent a risk to cryptocurrencies in general and to Scopuly tokens and network in particular, which can result in the loss or theft of Scopuly tokens.
Loss of credentials
The purchaser’s account on the Scopuly platform can only be accessed using the login and password selected by the purchaser. It is the responsibility of the purchaser to safeguard their login credentials and prevent unauthorized access to their electronic devices. The loss of credentials or their acquisition by a third party can result in theft or loss of Scopuly tokens.
Insufficient interest and dissolution of the project
There is a risk that the development of the Scopuly platform will not meet with a sufficient public interest, which may impact the project’s operations, impede them, or render them economically unviable, therefore impacting the value and potential use of the Scopuly tokens. If the Scopuly project stops being a viable business for any reason (including, but not limited to, unfavorable price volatility of the Scopuly tokens or cryptocurrencies in general, inability to establish business partnerships, competing intellectual property claims, etc.), it could dissolve or fail to launch.
