Risk Factors

This section on risk factors is not and does not purport to be a complete enumeration or explanation of the risks involved with the purchase of RCH tokens. There may be additional risks of which the Company is not aware. The following therefore highlights certain risks to which the Company is subject to and which the Company wishes to encourage prospective purchasers of RCH tokens to discuss with their own professional advisors.
Risk of software weaknesses: The Company’s platform and the underlying technology are still in an early development stage and unproven. There is no warranty that the process for creating the platform will be uninterrupted or error-free and there is an inherent risk that the software could contain weaknesses, vulnerabilities or bugs causing, inter alia, the complete loss of the tokens.
Regulatory risk: The blockchain technology allows new forms of interaction and it is possible that certain jurisdictions will apply existing regulations on, or introduce new securities law, tax or other laws or regulations addressing, blockchain technology-based applications and/or the issuance and sale of tokens, which may, inter alia, result in substantial modifications to the sale of tokens and/ or the Company’s platform, including its termination and the loss of all RCH tokens.
Government action: Because of the regulatory uncertainty described above, blockchain activities, including the activities of the Company, may be subject to heightened oversight and scrutiny, including investigations or enforcement actions. All of this could subject the Company to judgments, settlements, fines or penalties or require or cause the Company to restructure its operations and activities, to cease offering certain products or services in one or more jurisdictions or refrain from delivering the tokens to certain persons or in certain jurisdictions.
Risk of abandonment/lack of success: The creation of the RCH tokens and the development of the Company’s platform may be abandoned for a number of reasons, including lack of interest from the public, lack of funding, lack of commercial success or prospects (e.g. caused by competing projects). Also, even if the Company’s platform is partially or fully developed and launched, there is no assurance for its future users to use and access the platform as anticipated.
Risk associated with other applications: It is possible that alternative platforms and businesses could be established utilizing the same open-source code and protocol underlying the platform. The Company’s platform may compete with these alternative platforms and businesses, which could negatively impact the adoption of the platform and the RCH tokens. In addition, the Company’s platform may give rise to other, alternative projects, promoted by unaffiliated third parties, under which the RCH tokens will have reduced, or potentially no, intrinsic value. There is a risk that the Company or its representatives, or other third parties may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructural elements of the platform interfering with the use of, or causing the loss of, the tokens.
Risk of theft: The smart contract used to generate the tokens and the underlying software application may be exposed to attacks by hackers or other individuals including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Any such successful attacks could result in theft or loss of payments made to the Company and/or the RCH tokens, adversely impacting the ability to use or develop the platform and derive any usage or functionality from the RCH tokens.
RCH/Other Blockchain Mining Attacks: As with other cryptocurrencies, the blockchain being used for the RCH tokens is susceptible to mining attacks, including but not limited to double-spend attacks, majority mining power attacks, “selfish-mining” attacks, and race condition attacks. Any successful attacks present a risk to the RCH tokens and the Company’s platform, expected proper execution and sequencing of RCH token transactions, and expected proper execution and sequencing of contract computations.
●Development Risk: The timing for issuing the RCH tokens and for completing various steps in the implementation of the platform are set forth in this White Paper. However, there is no assurance that the Company will meet those target dates. The Company’s platform operationality may be limited at the time of the RCH tokens delivery date and not all of the anticipated operational features intended for the platform may be functioning at that time. The Company’s platform will still be subject to ongoing development and could undergo significant changes over time.
No Liquidity: RCH tokens are not intended for investment purposes. RCH tokens holders may not be able to sell, transfer or trade their unused RCH tokens to any other party. RCH tokens are intended to be used only in connection with the Company’s platform. There may never be a secondary market for the RCH tokens. RCH tokens may be subject to significant transfer restrictions as a result of actions taken by the Company or by government regulators.