RISK FACTORS

Acquiring services or products from DEXNET and/or DEXNET tokens involves significant risks. We strongly recommend that you carefully review all the information in this document, including the following risk factors, as well as the terms of the SAFT Agreement or any other document related to the sale of DEXNET tokens, before making a decision to purchase DEXNET devices and/or take actions related to DEXNET tokens. The actual occurrence of any of the following events may have a significant adverse impact on the development, business, prospects, and results of DEXNET, which could negatively affect your ability to receive rewards from your purchases. Many of these factors are unforeseen circumstances that may or may not occur, and we cannot assess the likelihood of such unforeseen circumstances. Although the risks discussed below are not exhaustive and represent only those that we consider serious, there may be other risks and uncertainties that DEXNET may face. Additional risks that are currently unknown, anticipated, or considered insignificant may also have a significant adverse impact on the development, business, prospects, and results of DEXNET, and you may lose a significant portion or all of the value paid for the acquisition of DEXNET products and/or DEXNET tokens. Therefore, the acquisition of DEXNET services or products and/or taking actions related to DEXNET tokens should be carried out exclusively by individuals who can bear such risks. Before participating, please carefully consider potential risks and, if necessary, consult with legal, accounting, and tax professionals to assess the associated risk.

The token economy is relatively new, and regulatory actions, including restrictions on ownership or use, may potentially apply to tokens. There is no guarantee that the acquired DEXNET tokens will increase in value, provide profits, or achieve sufficient distribution and liquidity for exchange into other assets.

Binance Smart Chain (BSC), on which DEXNET tokens are based, is an experimental technology, and it is impossible to predict all potential future risks. We do not take responsibility for possible losses. Please be cautious with all crypto assets and refrain from spending funds you cannot afford to lose.

WE MAKE NO PROMISES REGARDING POTENTIAL PROFIT OR RETURN OF FUNDS. YOU POTENTIALLY MAY LOSE THE ENTIRE VALUE PAID FOR PRODUCTS OR SERVICES IF THE MARKET PRICE OF DEXNET TOKENS FALLS TO ZERO.

Risk of losing access to DEXNET tokens due to the loss of private key(s): DEXNET tokens are BEP-20 tokens on Binance Smart Chain (BSC). To access and use these tokens, a wallet that complies with these standards, such as Trust Wallet or MetaMask, is required. You are responsible for protecting your tokens and preventing losses due to key loss or malicious access. WE ARE NOT RESPONSIBLE FOR LOSSES OF TOKENS AND OTHER DAMAGES INCURRED BY YOU AS A RESULT OF KEY LOSS OR WALLET ATTACKS.

Risks associated with Binance Smart Chain (BSC). Since DEXNET tokens are based on the Binance Smart Chain (BSC) blockchain, any malfunction, failure, or disruption of the BSC blockchain can significantly impact the DEXNET platform and its tokens. Additionally, technological advancements such as quantum computing may pose risks to the DEXNET platform, rendering the cryptographic consensus mechanism underlying the Binance Smart Chain (BSC) ineffective.

Licensing risks. The operation and stability of the DEXNET platform depend on the continued validity of necessary licenses in the jurisdictions in which it operates, as well as compliance with the terms of such licenses. While we intend to apply for the necessary licenses, there is a risk that the licenses required for DEXNET activities may not be issued in a timely manner or at all, or they may be issued on burdensome terms. Furthermore, even if a license is issued, there is no guarantee that it will not be subsequently revoked or that it will be successfully renewed. Inability to obtain, maintain, or renew the necessary licenses may have a significant adverse impact on the business, prospects, and results of DEXNET.

Risks Associated with Cryptocurrency Volatility: In general, the exchange rate at which any cryptocurrency can be traded for other currencies is extremely volatile.

Uninsured Loss Risk: Unlike bank accounts or accounts in some other financial institutions, DEXNET tokens are not insured unless you specifically purchase private insurance to cover them. Therefore, in case of loss or a decline in the value of DEXNET tokens, we do not have a government-sponsored insurance company or private insurance company that could offer compensation.

Risks Associated with Uncertain Rules and Regulatory Measures: The regulatory status of BEP-20 tokens and distributed ledger technology is unclear or unresolved in many jurisdictions. It is difficult to predict how regulatory bodies can apply existing rules to such technology and its applications. Similarly, it is difficult to predict how legislators or regulatory bodies may amend laws and regulations affecting distributed ledger technology and its applications. Regulatory actions can negatively impact the DEXNET platform in various ways, including, for example, by determining that the purchase, sale, delivery, or use of DEXNET tokens constitutes unlawful activity or that registration or licensing is required for some or all parties involved in the purchase, sale, delivery, or use of DEXNET tokens. DEXNET may cease its operations in a jurisdiction if regulatory actions or changes in laws render the activity in that jurisdiction unlawful or commercially impractical.

Taxation Risks: The tax characteristics of DEXNET tokens are unclear. You should seek your own tax advice regarding the purchase of DEXNET Tokens and the use of DEXNET Products.

Platform Competition Risk: It is entirely possible that alternative platforms will be created using the same or similar source code as the DEXNET platform. The DEXNET platform may compete with these alternative platforms, which could negatively impact the adoption of the DEXNET platform.

Insufficient Interest in DEXNET Platform Products Risk: It is possible that the DEXNET platform will not be used by a large number of individuals, companies, and other organizations, or public interest will be limited. Such lack of use or interest may negatively impact the development of the DEXNET platform.

Risks Associated with DEXNET Token Redemption Refusal: DEXNET token holders will not have the right to compel the DEXNET platform to redeem tokens. While DEXNET token holders may resell tokens to other parties (subject to any applicable transfer restrictions), in the event the secondary market for these tokens does not develop for an extended period or at all, purchasers of DEXNET tokens must be prepared to bear the risks for an extended period or the risk of expectations not being met.

PLEASE REMEMBER THAT THESE RISKS REPRESENT IMPORTANT FACTORS TO CONSIDER BEFORE PURCHASING DEXNET TOKENS OR DEXNET DEVICES AND SHOULD BE TAKEN INTO ACCOUNT ONLY BY THOSE WHO ARE WILLING TO ACCEPT SUCH RISKS.