Risks

The MatrixETF platform is currently in the initial development stages and there are a variety of unforeseeable risks. You acknowledge and agree that there are numerous risks associated with acquiring MDF, holding MDF, and using MDF for participation in the MatrixETF platform. In the worst scenario, this could lead to the loss of all or part of MDF held. IF YOU DECIDE TO ACQUIRE MDF OR PARTICIPATE IN THE MATRIXETF PLATFORM, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:

1. Uncertain Regulations and Enforcement Actions

The regulatory status of the MatrixETF platform, MDF and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of digital assets has become a primary target of regulation in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including MDF and/or the MatrixETF platform. Regulatory actions could negatively impact MDF and/or the MatrixETF platform in various ways. The Company, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. After consulting with a wide range of legal advisors to mitigate the legal risks as much as possible, the Company and Distributor have worked with the specialist blockchain department at Bayfront Law LLC and obtained a legal opinion on the token distribution, and will be conducting business in accordance with the prevailing market practice.

2. Inadequate disclosure of information

As at the date hereof, the MatrixETF platform is still under development and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this whitepaper contains the most current information relating to the MatrixETF platform, it is not absolutely complete and may still be adjusted and updated by the MatrixETF team from time to time. The MatrixETF team has neither the ability nor obligation to keep holders of MDF informed of every detail (including development progress and expected milestones) regarding the project to develop the MatrixETF platform, hence insufficient information disclosure is inevitable and reasonable.

3. Competitors

Various types of decentralised applications and networks are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative networks could be established that utilise the same or similar code and protocol underlying MDF and/or the MatrixETF platform and attempt to re-create similar facilities. The MatrixETF platform may be required to compete with these alternative networks, which could negatively impact MDF and/or the MatrixETF platform.

4. Failure to develop

There is the risk that the development of the MatrixETF platform will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency or MDF, unforeseen technical difficulties, and shortage of development funds for activities.

5. Security weaknesses

Hackers or other malicious groups or organisations may attempt to interfere with MDF and/or the MatrixETF platform in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Company, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of MDF and/or the MatrixETF platform, which could negatively affect MDF and/or the MatrixETF platform.

Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to MDF and/or the MatrixETF platform by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.

6. Other risks

In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks (as more particularly set out in the Terms and Conditions) associated with your participation in the MatrixETF platform, as well as acquisition of, holding and use of MDF, including those that the Company or the Distributor cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Company, the Distributor, their respective affiliates, and the MatrixETF team, as well as understand the overall framework, mission and vision for the MatrixETF platform prior to participating in the same and/or acquiring MDF.