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Risk Disclosure

Risk Disclosure

Risk Disclosure
General
Blockchain Technology and Associated Risks
Online Operations and Information Technology Risks
Personal Considerations and Compliance in Crypto Transaction
Assessment of Ecosystem Services and Forestio CO2 Credits (fungible tokens) minting
Cryptocurrencies and Forestio Digital Forests
Risk Disclosure
Last Updated: Aug 8, 2024
By creating an account and registering for our services, you acknowledge and agree to our Risk Disclosure Statement. This statement forms an integral part of our Terms & Conditions and outlines the inherent risks associated with our business model, technology, and the services we provide. During the registration process, you will be required to expressly acknowledge your understanding and acceptance of these risks.
This acknowledgment is a mandatory step to gain access to our platform and services. We emphasize the importance of reading and fully understanding the Risk Disclosure Statement, as it contains crucial information regarding the potential challenges and uncertainties you may face while using our services. Your agreement to this statement is essential for us to ensure informed consent and transparency in our operations.
General
As an innovative early-stage company, Forestio leverages advanced technology, including artificial intelligence and satellite imagery, for environmental conservation and sustainable development. Our model, integrating a token-based system for carbon offsetting and ecosystem service valuation, inherently carries certain risks and uncertainties.
Digital Forests and Value Representation: Forestio Digital Forests are non-fungible tokens (NFTs) that serve as digital certificates symbolizing ownership of and participation in various environmental projects, including tree planting, conservation, and ecosystem restoration. Each Digital Forest is unique and represents a specific, measurable environmental impact within our platform.
Platform Adoption: The success of our platform is contingent upon attracting a sufficient number of users and other stakeholders. A lack of user engagement could negatively impact the demand for and supply of Forestio Digital Forests.
Financial Dependence: Currently, Forestio relies on external financing for its operations. There is a risk associated with our ability to secure the necessary capital in the future.
Regulatory Environment: Our operations are subject to the legal and regulatory environment of various jurisdictions, which could impose restrictions on our activities and affect our ability to offer services globally.
Technical Challenges: As a digital platform, we are subject to risks related to software development, data security, and the reliability of third-party services, including blockchain protocols. There may be unexpected technical challenges or disruptions.
Environmental Impact: While our goal is to have a significant positive impact on global ecosystems, the actual effect of our initiatives is subject to various environmental, social, and economic factors that may be beyond our control.
Also, this document does not encompass all potential risks associated with our services. Users should engage with our services after thoroughly understanding these risk factors.
Blockchain Technology and Associated Risks
Risk of Blockchain Malfunction
Should there be any necessary changes to the blockchain protocols we use, or for other technical reasons, we reserve the right to amend, suspend, or terminate the affected services. This includes reconfiguring, redeploying, or replacing the technical solutions or parameters underlying the Forestio Digital Forests and User Accounts.
Security Threats and Mining Attacks
Threats like hacking, denial of service, and other cyber-attacks can compromise our website, user wallets, and token availability. Furthermore, the Polygon blockchain is susceptible to various mining attacks, presenting risks to the security and integrity of Forestio Digital Forests.
Also, be aware of potential fraudulent activities within the crypto sphere, such as unauthorized minting or selling of Forestio Digital Forests falsely associated with Forestio. We urge users to rely only on our official communication channels and our website, www.forestio.ai, for accurate information. Please contact us if you have any questions or notice any suspicious activities by third parties.
Online Operations and Information Technology Risks

Our services are primarily conducted online, relying heavily on information technology solutions. This dependence brings inherent risks, including hardware or software failures, internet connectivity issues, malicious software, unauthorized access, cyber-attacks, computer viruses, communication failures, and potential disruptions or delays. These risks could adversely affect the functionality and reliability of the Forestio platform.

To address these challenges, we have put in place robust IT security measures, including stringent security protocols specifically designed to protect the private keys associated with the user accounts where Forestio CO2 credits (fungible tokens) are stored. These measures are critical in safeguarding the assets managed and held by us against unauthorized access and cyber threats.

However, it's important to acknowledge that the complete elimination of such risks is not feasible. Despite our comprehensive precautions, we cannot be held responsible for any loss of assets due to factors beyond our control. These include issues inherent to general blockchain risks or those arising from external service providers. Consequently, we strongly advise our users to adopt appropriate measures to secure their own IT systems, complementing our efforts to maintain a secure and reliable platform.

Personal Considerations and Compliance in Crypto Transaction

As a user of Forestio's services and platform, it is important to assess and understand the risks and implications related to your specific circumstances. These include, but are not limited to, your financial condition, tax obligations, and the jurisdiction in which you reside. While certain aspects, such as personal financial management, are within your control, others are influenced by external factors like prevailing laws, the financial system, and currency stability. We strongly encourage you to consider these factors thoughtfully and seek professional advice when necessary.

For instance, the taxation of any proceeds or potential future gains related to Forestio Digital Forests, including those from any potential future market activities, is subject to the tax laws of your country of residence. Given the increased scrutiny by tax authorities on cryptocurrency and blockchain-related activities, tax laws and interpretations are continuously evolving. Additionally, the proceeds earned from ecosystem services, such as those related to Forestio Digital Forests, may be subject to value-added tax. We advise consulting with a tax professional or relevant tax authority to navigate these complexities.

Forestio Digital Forests are not currently tradable, but they may be in the future. There is a risk that, in certain jurisdictions, Forestio Digital Forests could be classified as securities, either now or in the future. Forestio does not provide any warranties or guarantees that its tokens will not be deemed securities in any jurisdiction. Users who acquire, hold, or utilize Forestio Digital Forests are responsible for understanding and bearing any legal or financial consequences if these tokens are considered securities or subject to other regulations in their jurisdiction. The ability of Forestio to offer Digital Forests may be limited or prohibited by future regulations or legal actions in certain areas. If it becomes highly probable that Forestio Digital Forests are not legally permissible in a particular jurisdiction, Forestio will, at its discretion, either cease its operations in that jurisdiction or modify the tokens to comply with local regulations, if feasible. It is the responsibility of the user to ensure that the acquisition, possession, and use of Forestio Digital Forests are legal in their jurisdiction.

By accepting these Terms, you expressly acknowledge and agree that you will not acquire, hold, or use Forestio Digital Forests if such actions are not legal in your jurisdiction.

Assessment of Ecosystem Services and Forestio CO2 Credits (fungible tokens) minting
Evolving Assessment Models: Our models for assessing ecosystem services are subject to continuous improvement. We anticipate and welcome constructive criticism to refine our methods. As a result, our current models may be modified or replaced entirely, impacting the Forestio CO2 Credit minting process, including the quantity and timing of issuance.
Challenges in Ecosystem Service Assessment: Our assessment depends on various third-party data sources. If these sources become unavailable or their quality is compromised, it could hinder our ability to accurately assess ecosystem services. For instance, unsuitable weather conditions may affect the quality of satellite images we rely on. We strive to use alternative data sources to maintain continuity.
Risk of Miscalculation: The dynamic nature of natural environments poses a risk of miscalculation in our assessments. Events like natural disasters or human activities can alter ecosystems unexpectedly. Despite regular monitoring of supported areas (forest fragments), there's a possibility of delayed detection of these changes, leading to inaccuracies in the data used for token minting. To mitigate over-crediting risks, we apply a conservative approach in our calculations.
While we strive for accuracy, we acknowledge that the information provided may contain errors or inaccuracies due to the unpredictable nature of environmental factors. We disclaim any liability for such inaccuracies or errors and any decisions made based on this information. Users are advised to independently verify the data before making any decisions reliant on the information provided in our assessments.
Cryptocurrencies and Forestio Digital Forests
Regulatory Status and Risks
Forestio operates within the dynamic and largely unregulated field of cryptocurrencies. This implies that activities related to Forestio Digital Forests, as virtual assets, are not governed by traditional financial sector regulations or supervision. Consequently, users engaging in transactions with Forestio Digital Forests do not have the regulatory protections, nor access to deposit or investor compensation schemes typically offered in the financial sector.
Value Volatility
The value of Forestio Digital Forests is inherently unpredictable and subject to significant volatility. Unlike traditional financial instruments, the valuation of these tokens is not transparent and may be seen as speculative. While Forestio Digital Forests represent a novel approach to valuing ecosystem services, their market is nascent, and thus their worth can fluctuate dramatically. This volatility means that investing in Forestio Digital Forests carries a high level of risk, including the potential loss of all invested funds.
Purpose and Ecosystem Value
Forestio Digital Forests represent an innovative way to support and engage with ecosystem conservation initiatives. While Digital Forests introduce a novel method for valuing and engaging with environmental services, the field is still developing. By holding Forestio Digital Forests, users gain a digital certificate representing their support for meaningful environmental projects. For the time being, we encourage viewing Digital Forests primarily as a means to contribute to conservation efforts
Blockchain Dependency
Forestio Digital Forests are based on blockchain technology, specifically the Polygon network, over which we have no control. As discussed earlier in this document, the inherent risks associated with blockchain technology apply here, including potential cyber threats, technical failures, and changes in protocol that could impact the functionality and value of the tokens.
Participation Considerations
Forestio Digital Forests are designed as a vehicle for environmental engagement rather than a financial instrument. Users interested in supporting ecosystem projects can contribute through Digital Forests, understanding that these tokens currently reflect a commitment to conservation rather than an investment. For now, Digital Forests are not intended for exchange, though this may evolve in the future. Those considering participation are encouraged to ensure it aligns with their personal goals and circumstances.