Whitelisted Vault Participation Event Terms and Conditions

Last Revised January 20, 2025

BY PARTICIPATING IN THE WHITELISTED VAULT PARTICIPATION EVENT, INCLUDING BUT NOT LIMITED TO CONNECTING A WALLET PURSUANT TO THE TERMS AND PROCESSES DESCRIBED HEREIN, PARTICIPANT ACKNOWLEDGES THAT THEY HAVE READ, UNDERSTOOD, AND AGREED TO THESE WHITELISTED VAULT PARTICIPATION EVENT TERMS & CONDITIONS IN THEIR ENTIRETY. THE PARTICIPANT IS RESPONSIBLE FOR MAKING THEIR OWN DECISION IN RESPECT OF PARTICIPATION IN THE WHITELISTED VAULT PARTICIPATION EVENT AND ANY RECEIPT OF TOKENS OR OTHER REWARDS. ANY PARTICIPATION IN THE WHITELISTED VAULT PARTICIPATION EVENT IS SOLELY AT THE PARTICIPANT’S OWN RISK. IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY TO SEEK APPROPRIATE PROFESSIONAL, LEGAL, TAX, AND OTHER ADVICE IN RESPECT OF THE WHITELISTED VAULT PARTICIPATION EVENT AND ANY RECEIPT OF TOKENS OR OTHER REWARDS PRIOR TO PARTICIPATING IN THE WHITELISTED VAULT PARTICIPATION EVENT AND PRIOR TO RECEIVING ANY TOKENS OR OTHER REWARDS.

BY PARTICIPATING IN THE WHITELISTED VAULT PARTICIPATION EVENT, THE PARTICIPANT EXPRESSLY ACKNOWLEDGES AND ASSUMES ALL RISKS RELATED THERETO, INCLUDING (WITHOUT LIMITATION) THE RISKS SET OUT BELOW. IN NO EVENT SHALL THE PROTOCOL DIRECTOR OR ANY AFFILIATED PERSON, EMPLOYEE, OR CONTRACTOR BE HELD LIABLE IN CONNECTION WITH OR FOR ANY CLAIMS, LOSSES, DAMAGES, OR OTHER LIABILITIES, WHETHER IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF OR IN CONNECTION WITH THE WHITELISTED VAULT PARTICIPATION EVENT OR THE RECEIPT OF ANY TOKENS OR OTHER REWARDS.

NEITHER THE DIRECTOR NOR ANY EMPLOYEE OR CONTRACTOR OF HIS TAKES ANY RESPONSIBILITY FOR THE PARTICIPATION BY ANY PARTICIPANT IN THE WHITELISTED VAULT PARTICIPATION EVENT. NEITHER THE DIRECTOR NOR ANY EMPLOYEE OR CONTRACTOR OF HIS PROVIDES ANY RECOMMENDATION OR ADVICE IN RESPECT OF THE WHITELISTED VAULT PARTICIPATION EVENT, TOKENS, OR ANY OTHER REWARDS. EACH PARTICIPANT PARTICIPATES IN THE WHITELISTED VAULT PARTICIPATION EVENT AT THEIR OWN RISK AND RECEIVES TOKENS OR OTHER REWARDS AT THEIR OWN RISK. THE WHITELISTED VAULT PARTICIPATION EVENT DOES NOT CONSTITUTE A SALE OF VIRTUAL ASSETS TO THE PUBLIC.

INTRODUCTION

These Whitelisted Vault Participation Event Terms & Conditions (“Terms”) govern the participation in and receipt of rewards, which may include the Fartstrategy token, FSTR (“Token” or “FSTR”) or other rewards (collectively, “Rewards”) through the Whitelisted Vault Participation Event program (“Whitelisted Vault Participation Event” or “Event”) organized by the FartStrategy Director ("Protocol Director" or “Director”). By participating in the whitelisted vault participation event, you (“Participant”) agree to be bound by these Terms. These Terms are supplemental to, and incorporate by reference, the general Terms of Service (“General Terms”). Defined terms used but not defined herein have the meaning set forth in the General Terms. The whitelisted vault participation event, and your participation in it, is a Service as defined under the General Terms.

These Terms govern your ability to use the Services in order to participate in the whitelisted vault participation event. You must read these Terms and the General Terms carefully, as they include important information about your legal rights. By participating in the Whitelisted Vault Participation Event, you are agreeing to these Terms and the General Terms. If you do not understand these Terms and the General Terms, you should not participate in the Whitelisted Vault Participation Event. If you do not agree to these Terms and the General Terms, you may not participate in the Event.

THE GENERAL TERMS CONTAIN AN ARBITRATION CLAUSE AND CLASS ACTION WAIVER. REVIEW SUCH CLAUSES CAREFULLY BECAUSE THEY AFFECT YOUR RIGHTS. BY AGREEING TO THESE TERMS, YOU AGREE TO RESOLVE ALL DISPUTES RELATED TO THE WHITELISTED VAULT PARTICIPATION EVENT THROUGH BINDING INDIVIDUAL ARBITRATION AND TO WAIVE YOUR RIGHT TO PARTICIPATE IN CLASS ACTIONS, CLASS ARBITRATIONS, OR REPRESENTATIVE ACTIONS, AS SET FORTH IN THE GENERAL TERMS.

You represent and warrant that any information provided during the whitelisted vault participation event process is true, accurate, and complete.

You agree and acknowledge that: (a) solely you are responsible and liable for all taxes due in connection with your participation in the whitelisted vault participation event; and (b) you should consult a tax advisor with respect to the tax treatment of Rewards in your jurisdiction.

You agree and acknowledge that you are responsible for complying with all applicable laws of the jurisdiction in which you reside or in which you are participating in the whitelisted vault participation event and claiming Rewards.

You agree that you are not: (i) a Prohibited Person (as defined in the General Terms); (ii) directly or indirectly acting on behalf of a Prohibited Person; or (iii) located in or accessing the Services from a Prohibited Jurisdiction (as defined below). You agree that you will not use a virtual private network (“VPN”) or similar tool to circumvent any geo-blocking and/or other restrictions that have been implemented in connection with the whitelisted vault participation event. Any such deliberate circumvention, or attempted circumvention, of any controls may permanently disqualify you from participation in the whitelisted vault participation event, as determined in Director’s sole discretion.

You agree and acknowledge that your participation in the whitelisted vault participation event does not violate any applicable laws, including without limitation applicable economic and trade sanctions and export control laws and regulations, such as those administered and enforced by the EU, OFSI, OFAC, the U.S. Department of State, the UN Security Council, the UK (including as extended to the Cayman Islands by statutory instrument), the Cayman Islands, and other relevant authorities to you and/or your activities.

You agree and acknowledge that the Director reserves the right to require additional information from you and to enter, use, or share such information into or with a Screening Service Provider (as defined below), and its systems, tools, or functionalities, as the Director deems appropriate in his sole discretion, including to reduce the risks of money laundering, terrorist financing, proliferation financing, sanctions violations, or other potentially illicit activity, or as otherwise necessary to address laws and regulations that may be relevant to the whitelisted vault participation event or the Rewards. You agree to provide complete and accurate information in response to any such requests. You agree and acknowledge that neither the Director nor his employees or contractors are responsible and cannot be held liable for any losses, expenses, or delays resulting from inaccurate or incomplete information, and you agree to assume full responsibility for any and all risks associated therewith.

Your eligibility to receive Rewards, or participate in the whitelisted vault participation event is subject to Director’s sole discretion. The whitelisted vault participation event shall be conducted during a specified period, as determined by the Director in his sole discretion (the “Whitelisted Vault Participation Event Period”) and Participants must claim their Rewards and accept the Terms (“Redemption Submission”) between the commencement of the Whitelisted Vault Participation Event Period and the date specified by the Director for Redemption Submission within the Whitelisted Vault Participation Event Period ("Redemption Submission Period"). Rewards will be automatically distributed to eligible Participants who made a Redemption Submission during the Redemption Submission Period.

You agree and acknowledge that you are not entitled to receive Rewards and/or to participate in the whitelisted vault participation event based on any documentation, commentary, calculators, metrics, and/or points systems published or otherwise made known by third parties monitoring activities on the FartStrategy protocol or providing third-party applications or services relating thereto (“Third-Party Publications and Services”). You have no claim to Rewards based on such Third-Party Publications and Services. Neither the Director nor his employees or contractors will review, control, monitor, or confirm the accuracy of information that may be provided through Third-Party Publications or Services. You agree and acknowledge that you have not engaged, and will not engage, in any activities designed to obtain Rewards, including on the basis of, or in reliance on, Third-Party Publications and Services.

You agree that you are the legal owner of the Whitelisted Vault Participation Event Address (as defined below) that you use to access or participate in the whitelisted vault participation event and the Services and will not sell, assign, or transfer control of such address or any Rewards to third parties or to knowingly redistribute Rewards to a person, IP Address (as defined below), or Whitelisted Vault Participation Event Address (as defined below) that would violate these Terms if claimed directly by such person, IP Address, or Whitelisted Vault Participation Event Address.

To participate in the whitelisted vault participation event, you must connect an eligible Whitelisted Vault Participation Event Address (as defined below) and/or connect a compatible third-party digital wallet (“Wallet”). Failure to provide and connect an eligible Wallet may result in the forfeiture of Rewards. There may be technical limitations, delays, and/or transaction fees due or payable to third parties to receive and/or claim Rewards through your Wallet.

By using a Wallet, you agree that you are using the Wallet in accordance with any terms and conditions of an applicable third-party provider of such Wallet. Wallets are not maintained or supported by, or associated or affiliated with, the FartStrategy protocol. When you interact with the whitelisted vault participation event or other Services, as between the FartStrategy protocol and you, you retain control over your digital assets at all times. Only you control digital assets, including the Rewards, in your Wallet, and bear all responsibility or liability to you in connection with your use of a Wallet. Director makes no representations or warranties regarding how the whitelisted vault participation event or other Services will operate with, or be compatible with, any specific Wallet. The private keys necessary to access and/or transfer the digital assets held in a Wallet are not known or held by the Director. Any third party that may gain access to a Participant’s login credential, private key, or third-party cloud or storage mechanism for such information may be able to misappropriate Rewards and/or other digital assets held by a Participant. Neither the Director nor his employees or contractors have any ability to help you access or recover your private key and/or seed phrase for your Wallet. As between you and the Director, solely you are responsible for maintaining the confidentiality of your private key, and solely you are responsible for any transaction signed with your private key. Solely you are responsible for any loss associated with your private key, digital wallet, vault, or other storage mechanism.

You agree and acknowledge that if you are unable to receive Rewards due to technical bugs, gas fees, wallet incompatibilities, loss of access to a wallet or the key thereto, or for any other reason, you will have no recourse or claim against the Director or any other entity. In any such cases, neither the Director nor his employees or contractors nor the FartStrategy protocol will bear any liability.

You agree and acknowledge that participation in the whitelisted vault participation event may require interaction with, reliance on, or an integration with third-party products or services (e.g., a wallet or a network) is not related to FartStrategy. In the event that you are unable to access such products, services, or integrations, or if they fail for any reason, and you are unable to participate in the whitelisted vault participation event or receive Rewards as a result, you will have no recourse or claim against the Director, his employees or contractors, or FartStrategy; and neither the Director nor any employee or contractor of the Director bear(s) any responsibility or liability to you.

You agree and acknowledge that your participation in the whitelisted vault participation event is at your own risk. You agree and acknowledge that you have carefully reviewed, read, and understood the Risk Factors below.

Without limiting any terms in the General Terms, you agree that you shall defend, indemnify, and hold the Director and any employees or contractors harmless from and against any and all claims, actions, proceedings, investigations, demands, suits, costs, damages, losses, liabilities and expenses (including attorneys’ fees and costs, and fines or penalties imposed by any regulatory authority) incurred by the Director or Director’s employees or contractors arising out of or in connection with: (a) your use of, or conduct in connection with, the whitelisted vault participation event; (b) your breach or the enforcement of these Terms, or (c) your violation of any applicable law, regulation, or rights of any third party. If you are obligated to indemnify the Director or Director’s employees or contractors hereunder, then you agree that the Director (or, at his discretion, the applicable employee or contractor) will have the right, in his sole discretion, to control any action or proceeding and to determine whether the Director wishes to settle, and if so, on what terms, and you agree to fully cooperate with the Director in the defense or settlement of such claim. Your obligations under this indemnification provision will continue even after these Terms have expired or been terminated.

Any employee or contractor of the Director not being a party to these Terms and the General Terms, may enforce any rights granted to them pursuant to these Terms, and/or the General Terms, in their own right as if they were a party to those Terms and General Terms. Except as expressly provided in this paragraph, a person who is not a party to the Terms and the General Terms shall not have any rights under the Contracts (Rights of Third Parties) Act (as amended) to enforce any term of these Terms and/or the General Terms. Notwithstanding any term of these Terms and/or the General Terms, the consent of or notice to any person who is not a party to the Terms and the General Terms shall not be required for any termination, rescission or agreement to any variation, waiver, release or settlement under the Terms and General Terms at any time.

ELIGIBILITY

Director shall, in his sole discretion, determine the eligibility criteria for participation in the whitelisted vault participation event, including the amount of Rewards to be distributed to eligible Participants that satisfy certain criteria. Different eligible Participants may receive different amounts of Rewards in any particular distribution of Rewards, depending on the criteria set forth by the Director for such distribution. The Director shall have no obligation to notify actual or potential whitelisted vault participation event participants of the eligibility criteria for the whitelisted vault participation event prior to, during, or after participation is opened for such whitelisted vault participation event.

The Director reserves the sole and absolute right to disqualify any Participant or potential Participant deemed ineligible for participation in the whitelisted vault participation event (be it under these Terms or by having determined that Participant engaged in any conduct that the Director considers harmful, unlawful, inappropriate, or unacceptable). Such disqualification may be appropriate if the Director determines, in his sole discretion, for example, that a Participant may have used multiple addresses to obscure their identity or location or to attempt to game, cheat, or hack the whitelisted vault participation event, Rewards, or the FartStrategy protocol.

Participant has full legal capacity and authority to bind and agree to the Terms. Participant is at least 18 years of age. If Participant is acting as an employee or agent of a legal entity, and enters into the Terms on behalf of the entity, Participant represents and warrants that Participant has all necessary rights and authorizations to do so.

The Director has implemented a risk-based program applicable to the whitelisted vault participation event and any related participation through its website, www.fartstrategy.com (“Website”), and any subdomains. This program screens information relating to attempts to participate in the whitelisted vault participation event using data and tools provided by an independent blockchain analytics provider (“Screening Service Provider”), applying screening criteria that may extend beyond the requirements of applicable law. Participation is also subject to geo-location and proxy detection controls to prevent access to the whitelisted vault participation event by potential Prohibited Persons or those located in a Prohibited Jurisdiction (as defined below). The Director reserves the right to take such additional steps as deemed necessary or appropriate, in his sole discretion, to verify the eligibility of any person.

The Director may deny, in his sole discretion, any person, internet-protocol address (“IP Address”), or digital-asset or protocol address (“Whitelisted Vault Participation Event Address”) access to the Website (or otherwise exclude such person, IP Address, or Whitelisted Vault Participation Event Address from participating in the whitelisted vault participation event) based on data from the Director’s Screening Service Provider when such data indicates such person, IP Address, or Whitelisted Vault Participation Event Address may present heightened risks based on the Director’s risk assessment framework (“Risk Assessment Framework”). In addition, the Director, his employees and contractors will use VPN and proxy detection tools to identify and block attempts to access any Services from restricted jurisdictions using such technologies. If you attempt to participate in the whitelisted vault participation event while using a VPN, proxy, or similar tool to circumvent any geo-blocking controls, your access may be denied, and your participation in the whitelisted vault participation event may be permanently disqualified at the Director’s sole discretion.

By using the Services and participating in any whitelisted vault participation event:

You agree and acknowledge that your Whitelisted Vault Participation Event Address will be screened and excluded from participation in the whitelisted vault participation event, at the Director’s sole discretion, if sufficient transactions between your Whitelisted Vault Participation Event Address and another digital-asset, smart-contract, or protocol address associated with certain risk-exposure categories.

You agree and acknowledge that your IP Address will be screened and excluded from participation in the whitelisted vault participation event if the Director’s geo-location controls detect that you may be located in a (a) Sanctioned Jurisdiction; (b) jurisdiction subject to heightened sanctions risks identified or enforced by certain countries, governments, or international authorities; or (c) jurisdiction otherwise considered high risk with respect to the whitelisted vault participation event or otherwise, including, but not limited to the United States, Cuba, Iran, Democratic People’s Republic of Korea, Syria, and certain Russian-occupied regions of Ukraine (collectively, “Prohibited Jurisdictions”). You agree and understand that the Prohibited Jurisdictions are subject to change without notice.

USER INTERFACE DISCLAIMER

There is only one website for participating in the whitelisted vault participation event, which is the Website. Do not trust any other website regardless of its source or origin or any link routing you to a different website.

Use of the Website for participating in the whitelisted vault participation event is at the risk of the user. The Services are provided on an “as is” and “as available” basis. The Director expressly disclaims all warranties of any kind, whether express, implied, or statutory, including the implied warranties of merchantability, fitness for a particular purpose, title, and non-infringement.

Neither the Director nor his employees or contractors make any warranty that the whitelisted vault participation event or the Services will meet your requirements or be uninterrupted, timely, secure, or error-free. Neither the Director nor his employees or contractors make any warranty that the results that may be obtained from access to or the use of Services will be accurate or reliable or that the quality of any products, services, applications, information, or other material accessed or obtained by you through the Services will meet your expectations.

By participating in the whitelisted vault participation event or accessing the Services, you represent and warrant that you: (a) understand the risks inherently associated with using cryptographic and blockchain-based systems; and (b) have a working knowledge of the usage, storage, and intricacies of digital assets. You further represent that you understand that markets for digital assets are highly volatile due to various factors, including adoption, speculation, technology, security, and regulation. You acknowledge and accept that the cost and speed of transacting with cryptographic and blockchain-based systems are variable and may increase or decrease dramatically at any time. You understand that anyone can create a token, including fake versions of existing tokens and tokens that falsely claim to represent certain projects, entities, or people, and you acknowledge and accept the risk that you or others may mistakenly seek to receive or trade those or other tokens. You acknowledge that neither the Director nor any of his employees or contractors is not responsible for any of these variables or risks and cannot be held liable for any resulting losses that you experience, including losses while accessing or using the Event or the Services. Accordingly, you understand and agree to assume full responsibility for all of the risks of accessing and using the Event and the Services.

You expressly understand and agree that neither the Director nor any of his employees or contractors will not be liable for any indirect, incidental, special, consequential, exemplary damages, or damages for loss of profits, including damages for loss of goodwill, use, or data or other intangible losses, whether based on contract, tort, negligence, strict liability, or otherwise, resulting from: (a) the participation in or the inability to participate in the Event, or to access the Services; (b) the cost of procurement of substitute goods and services resulting from any goods, data, information, or services accessed or obtained or messages received or transactions entered into in connection with the Event or the Services; (c) unauthorized access to or alteration of your transmissions or data; (d) statements or conduct of any third party in relation to the Services; (e) interruption or cessation of function related to any interface provided, including the Website; (f) bugs, viruses, trojan horses, or the like that may be transmitted to or through any interface provided, or the Website; (g) errors or omissions in, or loss or damage incurred as a result of the use of, any content made available through any interface provided, or the Website; or (h) any other matter relating to the whitelisted vault participation event or the Services.

NO PROFESSIONAL ADVICE AND NO FIDUCIARY DUTIES

All information provided on the Website or through the whitelisted vault participation event or the Services, or otherwise provided by the Director, is for informational purposes only and is not and should not be construed as professional advice. You should not take, or refrain from taking, any action based on any information contained on the Website or obtained through the whitelisted vault participation event or the Services. Before you make any financial, legal, tax, or other decisions with respect to the whitelisted vault participation event or the Services, you should seek independent, professional advice from an individual who is licensed and qualified in the area for which such advice would be appropriate.

These Terms are not intended to, and do not, create or impose any fiduciary duties or obligations on the Director or any associated entities. You acknowledge and agree that, to the fullest extent permitted by law, neither the Director nor his employees or contractors owe any fiduciary duties to you. Any duties that may otherwise exist at law or in equity are expressly disclaimed and waived.

LIMITATION OF LIABILITY AND INDEMNIFICATION

You have reviewed with your professional legal and other advisors as you deem necessary, and agree with the Disclaimers, Limitations of Liability, and Indemnification provisions in these Terms and the General Terms.

ENTIRE AGREEMENT

These Terms and the General Terms contain the entire agreement between you and the Director regarding the whitelisted vault participation event and supersede all prior and contemporaneous understandings between the parties regarding the whitelisted vault participation event. The Director may modify these Terms or the General Terms from time to time in which case the Director will update the “Last Revised” date at the top of the applicable Terms. The updated Terms will be effective as of the time of posting, or such later date as may be specified in the updated Terms. Your continued participation in the whitelisted vault participation event after the modifications have become effective will be deemed your acceptance of the modified Terms.

SEVERABILITY

If any term, clause, or provision of these Terms is held to be illegal, invalid, void, or unenforceable (in whole or in part), then such term, clause, or provision shall be severable from the Terms without affecting the validity or enforceability of any remaining part of that term, clause, or provision, or any other term, clause, or provision in the Terms, which will otherwise remain in full force and effect. Any invalid or unenforceable provisions will be interpreted to affect the intent of the original provisions. If such construction is not possible, the invalid or unenforceable provision will be severed from the Terms, but the rest of the Terms will remain in full force and effect.

RISK FACTORS

Receiving, using, transacting in, holding, purchasing and/or selling the Token involves a high degree of risk, including unforeseen risks that may not be included below. You should consult with your legal, tax, and financial advisors and carefully consider the risks and uncertainties described below, together with all of the other information in these Terms, before deciding whether to receive, use, transact in, hold, purchase, or sell the Token. If any of the following risks were to occur, the Token could be materially and adversely affected.

References in these risk factors to “Application” refers to any ‘front-end’ or web interface that the Director or his employees or contractors may host, including the Website and any subdomain.

Risks Relating to the FSTR token

Risks Relating to FSTR in particular. Significant market and economic factors may adversely affect your ability to use FSTR:

No Market for the Token. There is currently no public market for the Token. A public market may not develop or be sustainable, and you may not be able to sell any Tokens received in connection with the whitelisted vault participation event. Furthermore, neither the Director nor his employees or contractors can control how Token holders or third-party exchanges or platforms may support the Token, if at all. Even if a public market for the Token develops, such a market may be relatively new and subject to little or no regulatory oversight, making it more susceptible to fraud or manipulation.

Extreme Illiquidity. The depth and volume in any market for FSTR may be insufficient for you to sell without substantial price concessions.

Governance and the FartStrategy protocol Control. Over time, governance of the FartStrategy protocol is intended to transition to the broader community of the FartStrategy protocol users, who may make governance decisions which could affect the value or functionality of the Tokens.

Inflation. Due to the nature and operation of blockchain protocols, the total amount of circulating FSTR could increase through inflationary protocol governance or a network upgrade. An increase in the quantity of FSTR, or inflation, could adversely impact you as a holder of FSTR.

Experimental Features and Uses. FSTR may be upgradeable to have experimental features and uses. Future features and uses may prove not to be valuable, usable, or viable, and contributors may fail to adequately research and develop any such upgrades. Under current plans, and over time, the Director and his employees or contractors may not have the ability to effectuate upgrades to implement new features and use cases. Such upgrades may not be approved in the FartStrategy protocol governance or may be adopted with security flaws or with unexpected or harmful changes that are adverse to your ability to use your FSTR.

Risks Relating to Governance. Future upgrades may involve code changes that, under current plans, and over time, will be controlled by the FartStrategy protocol users. Thus, the Director may not have control over the FartStrategy protocol upgrades or administrative actions necessary to execute those upgrades, under current plans, and over time, nor will he be able to control the decisions and actions of the FartStrategy protocol users. This means that any future upgrades to the FartStrategy protocol may need to be voluntarily adopted by the FartStrategy protocol users, including, as applicable, the FartStrategy protocol users participating in governance as Token holders and/or as signatories for multi-signature wallets operated by the community.

Because the Director will lack control over community governance, under current plans, and over time, he will have limited means to prevent the FartStrategy protocol users from mismanaging the FartStrategy protocol code, ensure that there is an adequate or timely response to emergencies or other identified risks, or adopt necessary code or governance changes. The FartStrategy protocol users may make decisions or take actions (or fail to make decisions or take actions) in ways that adversely affect you and others.

Risks Related to Legal and Regulatory

Risks of New & Evolving Laws and Regulations: There is significant risk surrounding the ongoing development of regulatory frameworks governing blockchain technology all over the world, and as the blockchain, crypto, and web3 industry continues to grow, the Director expects regulatory scrutiny to increase across jurisdictions. Any restrictive or prohibitive legislation or regulation on blockchains or digital assets could impair the adoption of the FartStrategy protocol and/or the use of FSTR and adversely affect market sentiment surrounding the FartStrategy protocol and/or FSTR.

The development of the legal and regulatory environment could negatively impact the development, growth, and utilization of the FartStrategy protocol and therefore the uses of FSTR.

Risks of FSTR or FSTR Transactions Being Deemed Securities. The U.S. Securities and Exchange Commission (“SEC”) and its staff have taken the position that certain tokens and/or certain transactions involving tokens fall within the definition of a “security” under the U.S. federal securities laws. In addition, in recent months, the SEC has brought enforcement actions against centralized crypto exchanges offering staking arrangements, often called staking-as-a-service, that it contends constitute securities. The legal test for determining whether any given token or transaction is a security is a highly complex, fact-driven analysis that evolves with U.S. case law and developments over time, and the outcome(s) or conclusion(s) of any such legal analysis may be uncertain or evolve in ways that are difficult to predict. The SEC generally does not provide advance guidance on or confirmation of whether any particular token or transaction is or may be a security. Furthermore, the SEC’s views in this area have evolved over time and it is difficult to predict the direction or timing of any continuing evolution. It is also possible that legislative or judicial developments or a change in the governing administration or the appointment of new SEC commissioners could substantially impact the views of the SEC and its staff. Further, certain tokens or transactions may be deemed to be other types of regulated financial instruments or transactions in the U.S.; or securities or other regulated financial instruments or transactions in other jurisdictions. As a result, certain tokens or transactions may be deemed to be “securities” or other regulated financial instruments or transactions under the laws of some jurisdictions but not others. This regulatory uncertainty is, in part, why the U.S. is a Prohibited Jurisdiction under these Terms and the General Terms. Various foreign jurisdictions may, in the future, adopt additional laws, regulations, or directives that affect the characterization of certain tokens or transactions as “securities” or other regulated financial instruments. The classification of a token or transaction as a security or regulated financial instrument under applicable law has wide-ranging implications for the regulatory obligations that could be imparted on the Director, his employees or contractors, FartStrategy users, or holders of FSTR, including obligations that could make the FartStrategy not viable to continue to operate or negatively impact the development, growth, and utilization of FartStrategy and liquidity and market sentiment around FSTR.

Risk of Third-Party Illegal Activity. The FartStrategy protocol or Token may be exploited to facilitate illegal activity including fraud, money laundering, gambling, tax evasion, sanctions evasion, and scams. If any third party uses the FSTR to further such illegal activities, that and the legal and regulatory consequences of those activities could negatively impact the development, growth, and utilization of FartStrategy.

Risk of Sanctions Violations. The Director takes reasonable, risk-based measures to comply with applicable economic and trade sanctions laws and regulations as well as applicable export control laws and regulations. These regimes are constantly evolving, and new laws and regulations may materially adversely affect the potential utility or value of $FSTR. Abuses of the FartStrategy protocol and failures or alleged failures to comply with these laws and regulations may expose the FartStrategy users, the Director, his employees or contractors, and/or FSTR holders to reputational harm as well as significant penalties.

Risk of Entering into a General Partnership. It could be alleged that by holding FSTR or using FSTR to vote on governance proposals in relation to the FartStrategy protocol, the holders of FSTR have entered into a general partnership, unincorporated association, or some other form of legal entity or association with other FSTR holders or a group of such holders. At least one court in the United States has found that certain holders of a governance token constituted an unincorporated association. If this were to be found or alleged with respect to the FartStrategy protocol, holders of FSTR could be held responsible for the actions of the other members of the unincorporated association or general partnership, or the FartStrategy protocol itself, and subject to up to unlimited liability with respect to those actions. Additionally, such an allegation could negatively impact market sentiment around the FartStrategy protocol or FSTR and discourage participation in the FartStrategy protocol or utilization of FSTR.

Risks Associated with the Tax Treatment of Digital Assets. Due to the new and evolving nature of digital assets and the absence of comprehensive legal guidance with respect to digital asset transactions, the taxation of digital assets is uncertain, and it is unclear what guidance may be issued in the future on the treatment of digital asset transactions for tax purposes. Guidance under, or changes in, the tax laws applicable to digital assets, including FSTR, or the Director and/or his activities and transactions, either directly or through subsidiaries, could adversely impact the value of FSTR or your ability to use or engage in certain types of transactions with FSTR. The Director, his employees or contractors, and his subsidiaries may also have tax reporting obligations in various jurisdictions with respect to Rewards. You should consult a tax advisor with respect to the tax treatment of Rewards in your jurisdiction.

Operational Risks

Risks of Competition. The FartStrategy protocol and the Token compete against a variety of existing products and platforms as well as likely new entrants into the market. Some of these current or future competing protocols and products may be subject to different regulatory regimes than the Director, the FartStrategy protocol, or FSTR that may facilitate broader or faster adoption such that they can outcompete the FartStrategy protocol. Alternatively, other competitors may exercise different amounts of control over the protocol they design that allow for faster or broader adoption. Additionally, competitors may develop more successful protocols, applications, or tokens for a variety of other reasons, including but not limited to designing a more friendly user experience, offering more compelling incentives, attracting more users to the protocol, creating a more sustainable token economic design, or taking a more permissive view of applicable law.

Risks of Security Weaknesses or Attacks. Cyberattacks and security breaches impacting an Application, the FartStrategy protocol, FSTR, or the FartStrategy protocol’s users or third parties such as decentralized applications or crypto wallets that interact with the FartStrategy protocol or FSTR, could cause you to lose FSTR, or adversely impact the FartStrategy protocol or FSTR. The FartStrategy protocol could be vulnerable in a variety of ways, including but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing, governance attacks, exploitable code, or any number of other currently known or novel methods of exploit. Additionally, as mentioned above, upgrades or changes to the FartStrategy protocol or FSTR, which may be proposed, coded, and/or implemented by parties other than the Director or his employees or contractors, could introduce new vulnerabilities to the FartStrategy protocol or FSTR or otherwise have unintended or malicious adverse effects on the FartStrategy protocol and/or FSTR. The FartStrategy protocol generally executes automatically when certain conditions are met and typically cannot be stopped or reversed, so any vulnerabilities that may arise can have significant adverse effects to the FartStrategy protocol, FSTR, and holders of FSTR.

Further, any actual or perceived breach or cybersecurity attack directed at crypto companies or blockchain networks, whether or not the FartStrategy protocol is directly impacted, could lead to a general loss of user confidence in crypto or in the use of blockchain technology to conduct transactions, which could negatively impact the FartStrategy protocol, including the market perception of the effectiveness of security measures and technology infrastructure. Digital assets are generally controllable only by the possessor of a unique public and private key pair. To the extent your private key for your wallet is lost, destroyed, or otherwise compromised and no backup of the private key is accessible, you will be unable to access the tokens held in such wallet.

Any FSTR custodied, managed, escrowed, or supported by a third party, may be subject to a security breach, cyberattack, or other malicious activity, or may otherwise become lost or stolen. Such an event could severely impact you and your FSTR holdings and your ability to use FSTR.

Risk of Decentralized Operations. Coordinating operations and implementation of feature updates, new product launches, or community initiatives amongst a distributed community can result in inefficiencies and delays. Such inefficiencies and delays could create stagnation around new developments and improvements to the FartStrategy protocol and could allow more centralized competitors to act more efficiently and outcompete the FartStrategy protocol, resulting in decreased usage or negative sentiment around the FartStrategy protocol and FSTR.

Conversely, the Director and his employees and contractors' roles as contributors to research and development involving the FartStrategy protocol and FSTR presents certain risks, given the lack of extensive protocol development experience of the Director, and the novel nature of the FartStrategy protocol and potential use cases for FSTR.

Unanticipated Risks. Cryptographic tokens and blockchain-based protocols are relatively new and untested technologies. FSTR, as well as the FartStrategy protocol and its design concepts, algorithms, codes, and other technical details and parameters may be updated and changed. In addition to these risks, there may be other risks associated with your receiving, using, buying, transacting in, and/or holding FSTR, including those which cannot be anticipated or have not specifically enumerated here. Such risks may further materialize as unanticipated variations or combinations of the risks discussed. Further, new risks may be created as the FartStrategy protocol FSTR are developed (including by parties other than the Director or his contractors or employees) or third parties integrate FSTR or the FartStrategy protocol into their products. No person, including the Director nor his employees or contractors has an ability or obligation to keep Participants informed of details related to development of the FartStrategy protocol or FSTR. Lack of available information may create risk for you.

Fraudulent Websites. Users should be aware of the potential to be targeted by fraudulent websites, emails, text messages, and social media handles, including embedded or published links, impersonating projects, persons, entities, or service providers of or associated with the Director or his employees or contractors for the purpose of defrauding users, stealing their digital assets, or otherwise unlawfully profiting from such activities. These fraud and theft risks may materialize in connection with the whitelisted vault participation event, and you should remain extremely cautious about websites, emails, text messages, and social media handles, as well as any embedded or published links, that direct you to websites or to take actions, especially connecting to your Wallet. These Terms shall be governed and construed in accordance with the laws of the Cayman Islands.