Risk Disclosure Statement

1 Introduction

This Risk Disclosure Statement is provided by Cause Vision Limited ("Cause Vision," "we," "us," "our") in accordance with global financial regulatory standards, including guidelines issued by the Financial Action Task Force (FATF), the European Banking Authority (EBA), the Financial Conduct Authority (FCA), the Securities and Exchange Commission (SEC), and other relevant international bodies.

This document is intended to inform users, investors, and participants of the material risks associated with using Cause Vision's digital financial ecosystem, including Cause Wallet, Cause Coin, Cause Card, staking services, remittance, and all related products and services (collectively, the "Services").

By accessing or using any Cause Vision Service, you confirm that you have read, understood, and accepted the risks described in this document.

2 Risk Level Summary

The following is a high-level overview of risk categories associated with Cause Vision Services:

3 Not Financial Advice

Nothing contained in this Risk Disclosure Statement, or on the Cause Vision website, applications, or any communications, constitutes financial, investment, legal, or tax advice. All content is provided for informational purposes only.

Cause Vision is not a licensed financial advisor, investment manager, broker, or securities dealer. We do not make personalised investment recommendations. Any decision to use our Services, hold digital assets, or participate in staking or other financial activities is made solely at your own discretion and risk.

Past performance of any digital asset, including Cause Coin, is not indicative of future results.

4 Market & Price Risk

The prices of digital assets are determined by supply and demand dynamics in open markets and are subject to extreme fluctuations. Market risk is the risk of loss arising from movements in market prices.

• Digital asset prices may increase or decrease by significant percentages within very short timeframes
• Market conditions can be affected by macroeconomic factors, geopolitical events, monetary policy changes, and investor sentiment
• There is no guarantee that the market price of any digital asset will reflect its underlying or intrinsic value
• Thin or illiquid markets may result in large bid-ask spreads, increasing the cost of trading
• Global financial market downturns may correlate with digital asset market declines

5 Volatility Risk

Cryptocurrency and digital asset markets are characterised by extremely high volatility compared to traditional financial markets. This volatility is driven by:

• Speculative trading and market sentiment
• Relatively low market capitalisation compared to traditional asset classes
• Concentrated ownership by a small number of large holders ("whales")
• News events, social media influence, and public statements by influential individuals
• Technical developments, protocol upgrades, or security incidents
• Regulatory announcements or enforcement actions by governments worldwide
• Manipulation, wash trading, or coordinated pump-and-dump schemes in unregulated markets

Historical volatility data for major cryptocurrencies demonstrates that double-digit percentage moves within a single trading day are not uncommon. Minor or newer tokens, including Cause Coin, may experience even greater volatility.

6 Liquidity Risk

Liquidity risk is the risk that you may be unable to buy or sell a digital asset quickly enough at a price that reflects its true value. Factors contributing to liquidity risk include:

• Low trading volume on exchanges listing Cause Coin or other digital assets
• Withdrawal of market makers or liquidity providers during periods of market stress
• Exchange outages, maintenance windows, or technical failures
• Regulatory actions that freeze or restrict trading on specific platforms
• Staking lock-up periods during which assets cannot be traded or withdrawn
• Smart contract restrictions on redemption or liquidity pool withdrawals

In extreme scenarios, there may be no available market for a digital asset, making it effectively illiquid and potentially worthless.

7 Concentration Risk

Concentrating your holdings in a single digital asset, platform, or financial product significantly increases the potential impact of adverse events. We strongly recommend:

• Diversifying your digital asset portfolio across multiple assets and asset classes
• Not allocating a disproportionate share of your overall wealth to digital assets
• Avoiding storing all digital assets on a single platform or in a single wallet
• Regularly reviewing your portfolio in light of changing market and personal circumstances

8 Digital Asset Risk

Digital assets, including cryptocurrencies and tokens, are a novel and evolving asset class. They are fundamentally different from traditional financial instruments and carry unique risks:

• No deposit protection: Digital asset holdings are not covered by deposit guarantee schemes such as the FDIC (USA), FSCS (UK), or EU Deposit Guarantee Schemes
• Irreversibility: Blockchain transactions are generally irreversible. Sending assets to an incorrect address may result in permanent and total loss
• No intrinsic value guarantee: Digital assets may have no underlying asset, cash flow, or collateral backing their value
• Technology dependency: The value and usability of digital assets depend entirely on the continued operation of underlying technology infrastructure
• Adoption risk: Failure to achieve mass adoption may render a digital asset worthless
• Competition risk: Superior competing technologies or protocols may emerge, reducing demand for existing digital assets

9 Blockchain & Protocol Risk

Cause Coin operates on the Ethereum blockchain. Cause Vision's services depend on the continued and reliable operation of blockchain infrastructure. Relevant risks include:

• 51% attacks: An entity gaining majority control of a blockchain's hashing power or validator stake may manipulate transaction history
• Network congestion: High transaction volumes may result in delayed confirmations and elevated gas fees on the Ethereum network
• Protocol failures: Bugs or vulnerabilities in the core blockchain protocol may result in loss of funds or service disruption
• Consensus mechanism changes: Changes to blockchain consensus mechanisms (e.g. proof-of-work to proof-of-stake) may affect performance and security
• Validator risk: In proof-of-stake networks, validator misconduct may result in "slashing" — the permanent destruction of staked assets
• Layer-2 risks: Off-chain scaling solutions introduce additional trust assumptions and potential failure modes

10 Smart Contract Risk

Smart contracts are self-executing code deployed on a blockchain. While Cause Vision conducts code reviews and audits, smart contracts carry inherent risks:

• Coding vulnerabilities: Bugs, logic errors, or exploitable vulnerabilities in smart contract code may lead to loss of funds
• Immutability: Once deployed, smart contracts may be difficult or impossible to modify, meaning bugs cannot always be patched
• Oracle failures: Smart contracts that rely on external data feeds (oracles) may malfunction if oracles provide inaccurate or manipulated data
• Reentrancy attacks: Malicious actors may exploit vulnerabilities to repeatedly drain funds from a smart contract
• Economic exploits: Flash loan attacks or other economic manipulation may drain protocol liquidity
• Audit limitations: Security audits reduce but do not eliminate the risk of undiscovered vulnerabilities

11 DeFi & Staking Risk

Cause Vision offers staking services which carry additional risks beyond standard digital asset holdings:

• Lock-up periods: Staked assets may be subject to lock-up periods during which they cannot be accessed, sold, or transferred
• Reward variability: Staking yields are variable and not guaranteed. Historical or projected yields do not constitute a promise of future returns
• Slashing: Validator misbehaviour on proof-of-stake networks may result in permanent destruction of staked assets
• Protocol changes: Staking terms, reward rates, or lock-up conditions may be altered by protocol governance decisions
• Impermanent loss: Providing liquidity to decentralised exchanges may result in impermanent loss relative to simply holding the assets
• Counterparty risk: If Cause Vision or a staking partner experiences insolvency or technical failure, staked assets may be at risk

Staking rewards do not constitute interest within the meaning of banking regulations and are not protected by any deposit guarantee scheme.

12 Custody & Private Key Risk

The security of digital assets is fundamentally tied to the security of private cryptographic keys. Users of self-custody wallets bear sole responsibility for safeguarding private keys and seed phrases.

• Loss of private keys: If you lose access to your private keys or seed phrase, your digital assets are permanently and irrecoverably lost
• Unauthorised access: If your private keys, seed phrase, or account credentials are stolen or compromised, your assets may be stolen with no recourse
• Custodial risk: When assets are held in custodial wallets, the custodian's insolvency, fraud, or technical failure may affect your ability to recover assets
• Hardware failure: Physical damage to hardware wallets or storage devices may prevent access to funds
• Phishing attacks: Fraudulent websites or communications impersonating Cause Vision may attempt to steal credentials or private keys

13 Fork & Network Split Risk

Blockchain networks may undergo hard forks or splits, creating new competing chains. This may:

• Result in uncertain or contested ownership of digital assets
• Reduce the value of original assets as the community and hash power divide
• Create operational complexity in crediting forked assets to user accounts
• Lead to replay attacks where transactions on one chain are replicated on another

Cause Vision will use reasonable efforts to handle fork events in the best interests of users, but makes no guarantee regarding the handling or crediting of forked assets.

14 Cybersecurity Risk

Digital financial platforms are high-value targets for cybercriminals. Despite our security measures, Cause Vision and its users face cybersecurity risks including:

• Platform hacks: Malicious actors may exploit vulnerabilities in our systems to gain unauthorised access to user funds or data
• DDoS attacks: Distributed denial-of-service attacks may render our services temporarily unavailable
• Social engineering: Phishing, SIM-swapping, and impersonation attacks targeting users to obtain account access
• Malware: Keyloggers, clipboard hijackers, and other malware on users' devices may compromise account security
• Supply chain attacks: Compromise of third-party software libraries or dependencies used by our platform
• Insider threats: Malicious or negligent employees of Cause Vision or its partners may cause security incidents

Users are strongly encouraged to enable two-factor authentication (2FA), use strong and unique passwords, and regularly review account activity for suspicious transactions.

15 Operational Risk

Operational risk refers to losses arising from failures in internal processes, systems, or human error. This includes:

• System outages, maintenance windows, or unexpected downtime affecting access to funds
• Technical errors in transaction processing, crediting, or record-keeping
• Errors in smart contract deployment or configuration
• Human error by Cause Vision employees or contractors
• Failure of critical third-party infrastructure providers (cloud services, payment rails, KYC providers)
• Natural disasters, pandemics, or force majeure events affecting operations

Cause Vision maintains business continuity and disaster recovery plans but cannot guarantee uninterrupted service availability.

16 Counterparty Risk

Counterparty risk is the risk that a party with whom Cause Vision transacts fails to meet its obligations. This may arise from:

• Insolvency or bankruptcy of exchange partners, liquidity providers, or banking partners
• Default on financial obligations by counterparties in over-the-counter (OTC) transactions
• Failure of payment card issuers or processors affecting Cause Card functionality
• Insolvency of staking infrastructure providers holding user assets

In the event of counterparty failure, user assets may be lost, frozen, or subject to protracted legal recovery processes. Digital asset holdings are not covered by standard investor protection schemes.

17 Third-Party Service Risk

Cause Vision integrates third-party services including blockchain networks, payment processors, KYC providers, cloud infrastructure, and data providers. Cause Vision does not control these third parties and accepts no liability for their failures, errors, or policy changes. Risks include:

• API failures or changes by third-party services disrupting Cause Vision functionality
• Data breaches at third-party service providers exposing user information
• Termination of third-party service agreements affecting platform capabilities
• Changes in third-party pricing, terms, or availability

18 Regulatory Risk

The regulatory landscape for digital assets and financial services is evolving rapidly and varies significantly across jurisdictions. Regulatory risk includes:

• Prohibition: Governments may ban or severely restrict the use, trading, or holding of digital assets
• Licensing requirements: New licensing requirements may force Cause Vision to cease operations in certain jurisdictions
• AML/CFT enforcement: Anti-money laundering and counter-terrorism financing enforcement actions may freeze accounts or require asset seizure
• Securities classification: Regulatory authorities may classify Cause Coin or other digital assets as securities, subjecting them to registration and compliance requirements
• Travel Rule compliance: Requirements to share sender and recipient data for transfers above certain thresholds
• MiCA (EU): The EU Markets in Crypto-Assets Regulation may impose new requirements on digital asset service providers
• DORA (EU): Digital Operational Resilience Act requirements applicable to financial entities

Regulatory changes may affect the availability, functionality, or legality of Cause Vision Services in your jurisdiction with little or no advance notice.

19 Legal & Compliance Risk

Cause Vision operates across multiple jurisdictions, each with its own legal framework. Legal risks include:

• Litigation or regulatory enforcement actions against Cause Vision that affect service availability
• Disputes regarding the legal status or enforceability of smart contracts
• Intellectual property claims against Cause Vision's technology
• Legal uncertainty regarding the enforceability of digital asset transactions in certain jurisdictions
• Changes in applicable law that require Cause Vision to alter or discontinue services

20 Tax Risk

The tax treatment of digital assets is complex, varies significantly by jurisdiction, and is subject to change. You are solely responsible for determining and meeting your own tax obligations. Tax risks include:

• Capital gains tax on the disposal of digital assets (including conversion between cryptocurrencies)
• Income tax on staking rewards, mining income, or crypto received as payment
• VAT or sales tax on digital asset transactions in certain jurisdictions
• Retroactive changes in tax law applying to past transactions
• Reporting obligations for foreign financial accounts or digital asset holdings
• Penalties for failure to report digital asset income or gains

21 Sanctions & Geopolitical Risk

Cause Vision operates in compliance with international sanctions regimes, including those administered by OFAC (USA), HMT (UK), the EU, and the UN. Sanctions risks include:

• User accounts may be frozen or terminated if a sanctions screening match is identified
• Transactions involving sanctioned entities, jurisdictions, or wallet addresses will be blocked
• Geopolitical events may result in new or expanded sanctions that affect the availability of services in certain regions
• Cause Vision may be required to report suspicious activity or freeze assets without prior notice to the user

22 Foreign Exchange Risk

If your base currency differs from the currency in which digital assets are priced (typically USD), changes in exchange rates will affect the value of your holdings when measured in your home currency. Forex risk includes:

• Currency depreciation reducing the local-currency value of digital asset holdings
• Exchange rate spreads and conversion fees when transacting in multiple currencies
• Currency controls imposed by governments limiting the ability to convert or repatriate funds

23 Inflation & Macroeconomic Risk

Broader macroeconomic conditions can significantly affect digital asset markets:

• High inflation environments may drive increased or decreased demand for digital assets as an inflation hedge
• Central bank interest rate increases may reduce risk appetite and capital flows into digital assets
• Global recession or economic contraction may reduce discretionary investment in digital assets
• Collapse of major financial institutions may trigger contagion effects in crypto markets

24 Cause Coin Specific Risks

In addition to the general risks described above, Cause Coin (CAUSE) carries specific risks inherent to its design and ecosystem:

• Early-stage asset: Cause Coin is a relatively new digital asset with limited trading history and market depth
• Adoption dependency: The value of Cause Coin is dependent on adoption of the Cause Vision ecosystem by merchants, users, and charitable partners
• Token supply management: The creation, burning, or vesting of CAUSE tokens may affect market price and dilution
• Mission risk: Changes to the philanthropic model or partnerships may affect the perceived value proposition of Cause Coin
• Exchange listing risk: Delisting from exchanges would significantly reduce liquidity and market access
• Governance risk: Changes to protocol governance or token economics may adversely affect holders
• Ethereum dependency: Cause Coin inherits all risks of the Ethereum network on which it is deployed

25 No Guarantees & Limitation of Liability

Cause Vision makes no representations, warranties, or guarantees regarding:

• The future price, value, or performance of any digital asset
• The uninterrupted availability or reliability of its Services
• The accuracy or completeness of any information provided on its platforms
• The outcomes of any financial decision made by users in connection with its Services

To the fullest extent permitted by applicable law, Cause Vision, its directors, officers, employees, agents, and affiliates shall not be liable for any direct, indirect, incidental, special, consequential, or punitive damages arising from the use of or inability to use its Services, including loss of digital assets, loss of data, or financial loss.

Please refer to our full Terms of Use for the complete limitation of liability provisions.

26 Acknowledgement

By using Cause Vision Services, you acknowledge and agree that:

• You have read and understood this Risk Disclosure Statement in full
• You understand that digital assets and financial services involve significant risk of loss
• You are solely responsible for your own financial decisions and outcomes
• You have obtained independent professional advice where appropriate
• You are using the Services voluntarily and accept all associated risks
• The risk categories described herein are not exhaustive and additional unforeseen risks may materialise