---
description: >-
  Risk Disclosure Policy. Our mission is to deliver secure services and devices
  that enable individuals to thrive in the fast-paced FinTech industry.
---

# Risk Disclousure

### I. INTRODUCTION

This is the Risk Disclosure Policy (“Policy”) of LayerK Group LTD, a company incorporated in the British Virgin Islands (“LayerK”). This Policy outlines the potential risks involved in accessing and using of all parts of the website and services branded offered by LayerK and referring to the domain [https://layerk.com/](https://layerk.com/) (“Platform”) as well as the blockchain developed by LayerK (“LayerK Chain”). It is important to carefully review this document to fully understand the limitations, liabilities, and uncertainties that may arise. By accessing and using the Platform and the LayerK Chain, you acknowledge and agree that you have read, understood, and accepted all risks outlined herein. While this Policy aims to outline the primary risks, it does not provide an exhaustive explanation of all possible risks, nor does it address how these risks specifically pertain to individual circumstances.

### II. GENERAL RISKS

1. Platform Availability and Reliability

LayerK provides access to the Platform and its services on an "as is" and "as available" basis. No guarantees are made concerning the uninterrupted availability of the Platform or its features. Disruptions may occur, including but not limited to server issues, maintenance downtimes, network failures, or unforeseen events beyond the control of LayerK or its partners.

2. No Warranties\
   LayerK explicitly disclaims any and all warranties, whether express, implied, statutory, or otherwise, related to the Platform and its services. This includes, but is not limited to:
   1. Implied Warranties of Merchantability and Fitness for a Particular Purpose: no guarantee is made that the Platform will meet your specific needs or perform at the level you expect.
   2. Non-Infringement: LayerK does not warrant that the Platform will not infringe on the intellectual property rights of third parties.
   3. Freedom from Harmful Elements: the Platform does not guarantee the absence of viruses, malware, or other potentially harmful components.
   4. Performance Consistency: no assurances are made regarding the accuracy, reliability, or completeness of the results obtained from using the Platform.
3. Technological Risks
   1. Software Compatibility: users should ensure their devices, operating systems, and software are compatible with the Platform and the LayerK Chain. Any failure to meet these technical requirements could result in service disruption or failure to access services.
   2. Outdated Software: Use of outdated software or failure to keep software updated may expose users to security vulnerabilities and reduce functionality.
4. Risks Related to User Behavior
   1. User-Generated Errors: incorrect wallet addresses, transaction parameters, or other data inputs by users may lead to irreversible losses. LayerK is not liable for any errors caused by users when interacting with the Platform or the LayerK Chain.
   2. User Inaction: failure to act in a timely manner in response to requests for transaction confirmations, security verifications, or network adjustments may result in failed transactions or potential loss of funds.

### III. RISKS RELATED TO BLOCKCHAIN TECHNOLOGY

1. Smart Contracts and Governance Risks\
   Some of the services offered by LayerK operate via smart contracts deployed on the LayerK Chain. These smart contracts are immutable and cannot be altered or reversed once executed. Although LayerK initially developed the code for the LayerK Chain, it neither controls nor manages the operation of the smart contracts, which are governed by the LayerK Chain token holders (vLayerK token) in a decentralized manner.\
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   Potential risks include:
   1. Vulnerabilities in Smart Contracts: smart contracts may have coding errors or bugs that could be exploited, leading to unforeseen issues, including but not limited to loss of funds.
   2. Governance Uncertainty: the decentralized governance of the LayerK Chain means that future changes or upgrades to the protocol may not align with your interests or may introduce new risks.
2. Blockchain-Specific Risks
   1. Transaction Finality: transactions executed on the blockchain are irreversible. Any errors in transaction details, such as incorrect wallet addresses or amounts, cannot be corrected or undone.
   2. Network Congestion: delays or failures in transaction processing may occur due to high levels of network activity or congestion.
   3. Blockchain Forks: the blockchain upon which LayerK operates may experience forks, resulting in duplicate or conflicting versions of the LayerK Chain’s apps and services.
   4. Consensus Failure: there is a risk that the underlying LayerK Chain network may fail to reach consensus, leading to transaction failures or delays.
   5. Data Retention and Deletion: users should be aware of data retention policies and understand that once certain data is stored on a blockchain, it may be immutable and unable to be deleted. Users are encouraged to avoid sharing personal or sensitive information that cannot be changed or deleted.

### IV. RISKS TO DIGITAL ASSETS AND CRYPTOCURRENCIES

1. Market and Financial Risks\
   The value of cryptocurrencies, tokens, and digital assets is highly volatile and unpredictable. Market conditions, regulatory changes, and other external factors can result in significant price fluctuations. Users engaging in transactions on the LayerK Chain should be aware of the following:
   1. Token Value Volatility: the value of cryptocurrencies and digital tokens, including vLayerK tokens, may experience rapid and substantial changes, resulting in potential loss of capital.
   2. Liquidity Risks: certain tokens or digital assets may have limited liquidity, making it difficult to buy or sell them in the market.
   3. Total Loss Risk: users should only invest or trade with amounts they are prepared to lose entirely, as there is no guarantee of returns or protection against loss.
   4. Token Delisting: there is a risk that certain tokens, including vLayerK tokens, may be delisted from third-party exchanges or trading platforms, making it difficult to trade or exchange such tokens.
2. Security Risks\
   While LayerK strives to maintain the security of its Platform and LayerK Chain, no system is entirely immune from hacking or unauthorized access. Risks include, but are not limited to:
   1. Private Key Mismanagement: users are responsible for securing their private keys and other access credentials. Loss or theft of a private key can result in the permanent loss of digital assets.
   2. Non-Custodial Nature: users of the Platform and LayerK Chain are responsible for managing their private keys and other credentials. As the system is non-custodial, LayerK does not have access to or control over users' wallets or assets. Loss of access credentials may result in permanent loss of funds or digital assets.
   3. Backup and Redundancy: users are encouraged to implement secure backup and redundancy solutions for their private keys and other sensitive information. Loss of such backups may lead to unrecoverable losses.
   4. Phishing and Social Engineering Attacks: users may be targeted by phishing scams or social engineering attacks, leading to unauthorized access to their accounts or digital assets.
   5. Security Breaches: LayerK is not responsible for any unauthorized access, hacks, or security breaches that result in the loss of funds, personal data, or other valuable assets.

### V. OPERATIONAL RISKS

1. Technical Failures\
   The Platform, like any digital service, is subject to technical failures, including but not limited to:
   1. System Bugs or Errors: software bugs, technical malfunctions, or network issues may disrupt the functioning of the Platform.
   2. Service Interruptions: unplanned downtime, maintenance periods, or force majeure events may result in temporary or permanent unavailability of the Platform or its services.
   3. Data Corruption or Loss: LayerK does not guarantee the integrity of data and is not liable for the loss or corruption of data, including personal information or transaction records. Users should take their own steps to protect sensitive data
2. Third-Party Dependencies\
   The Platform and LayerK Chain may integrate with or rely on third-party services, tools, or technologies. Risks associated with third-party dependencies include:
   1. Service Disruptions: failures or disruptions in third-party services (e.g., oracles, wallets, exchanges) may negatively impact the Platform or the LayerK Chain.
   2. Third-Party Liability: LayerK is not responsible for the actions, omissions, or failures of third-party service providers.

### VI. REGULATORY AND LEGAL RISKS

1. Regulatory Uncertainty\
   The legal and regulatory framework for blockchain technology, cryptocurrencies, and digital platforms is evolving and subject to change. Risks related to regulatory uncertainty include:
   1. Legal Compliance: users are responsible for ensuring their compliance with all applicable laws and regulations in their jurisdiction.
   2. Potential Restrictions: regulatory changes may restrict or prohibit the use of blockchain-based services, including the Platform and the LayerK Chain, in certain regions or for specific activities.
   3. Taxation and Reporting: users should be aware that they may be required to report and pay taxes on cryptocurrency transactions, and failure to do so could result in legal penalties.
2. Jurisdictional Risks\
   The decentralized nature of blockchain technology means that the LayerK Chain may be used by individuals in multiple jurisdictions. Users should be aware of the legal implications of their activities and transactions in their local jurisdiction. LayerK does not provide legal advice, and it is the User’s responsibility to ensure compliance with local laws.

### V. LIMITATION OF LIABILITY

LayerK and its affiliates, partners, and service providers shall not be liable for any direct, indirect, incidental, special, punitive, or consequential damages arising out of or related to your use or inability to use the Platform and the LayerK Chain. This includes, but is not limited to:

i. Loss of Profits or Revenue: losses resulting from the volatility of cryptocurrencies or digital assets.

ii. Loss of Data: the loss of personal information or transaction records due to technical failures, security breaches, or user errors.

iii. Loss of Digital Assets: any loss of cryptocurrencies, tokens, or other digital assets due to errors, hacks, or unauthorized access.

### VI. TAX DECLARATION AND DISCLAIMER

1. Tax Obligations: by accessing and using the Platform and the LayerK Chain, users acknowledge that any purchases, commissions, or compensation received may be subject to taxation according to the laws and regulations of their jurisdiction. Users are solely responsible for understanding and complying with applicable local tax obligations.
2. No Liability for Taxes: LayerK does not assume any liability or responsibility for users' tax payments arising from rewards or benefits obtained through the products and services provided. Users are responsible for determining tax liabilities with a qualified tax professional or financial advisor and fulfilling any necessary tax reporting and payment obligations.
3. Change in Tax Residency: users moving to a new jurisdiction should assess how this may affect their tax liabilities related to digital assets, as different regions may have varying rules regarding crypto taxation.
4. Professional Advice Recommendation: LayerK strongly recommends seeking advice from a qualified tax professional or financial advisor to accurately ascertain tax liabilities. Tax regulations and obligations vary by region and country. Users must ensure fulfillment of all applicable requirements.
5. Regulatory Changes: tax laws and regulations are subject to change. Users are responsible for staying informed about any changes that may affect their tax liability. LayerK is not responsible for notifying users about alterations in tax laws.
6. Disclaimer: this tax declaration is for informational purposes only and does not constitute legal or financial advice. Users are advised to consult with a qualified tax professional or financial advisor in their jurisdiction for accurate and personalized guidance regarding tax obligations. LayerK does not endorse any specific tax strategy or interpretation of tax laws. Decisions based on provided information are made at users' own risk.

By using the Platform and the LayerK Chain, users acknowledge and agree to the above-stated terms regarding their tax obligations and responsibilities.

### VII. CONCLUSION

By accessing and using the Platform, the LayerK Chain and its associated services, you acknowledge and accept the risks outlined in this Risk Disclosure Policy. It is your responsibility to carefully consider these risks and take appropriate precautions when interacting with the Platform and the LayerK Chain. LayerK recommends that users conduct thorough research and seek professional advice before engaging in any transactions on the Platform or the LayerK Chain.

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