Disclaimer and Risk Factor for Double N
General Disclaimer
This whitepaper has been prepared to provide information on the business model, technology, and team of the Double N Protocol and DNN for those interested in the project. This whitepaper is provided on an "as-is" basis, and the Double N project team makes no guarantees regarding the accuracy or appropriateness of any content, including conclusions, timelines, and outcomes of the projects listed in the roadmap. The contents of this whitepaper may be subject to change based on the policies and decisions of the Double N project team, and the final version shall take precedence over any previous versions.
The information and analysis contained in this whitepaper do not constitute a recommendation or solicitation for participation in this project. This whitepaper is not intended as investment advice or an offer to invest in securities or financial products. Additionally, for matters related to risk assessment, the application of relevant laws, or taxation, it is advised to seek independent professional consultation beyond the contents of this whitepaper.
Any decisions made based on this whitepaper, as well as any resulting losses, damages, or costs incurred, are the sole responsibility of the user. The Double N project team assumes no liability for any such consequences.
This whitepaper contains information from third parties and publications. The Double N project team makes no warranties regarding the accuracy or completeness of such information and is under no obligation to update, revise, or modify this whitepaper, even if there are changes to such information.
This whitepaper has not been reviewed or approved by any regulatory authority, and its publication, distribution, or dissemination does not imply compliance with all applicable laws or regulations. In certain jurisdictions, the publication, distribution, or dissemination of this whitepaper may be restricted or prohibited by law. Additionally, regulatory authorities may impose restrictions on the sale, ownership, use, or holding of DNN, which could affect its sale and use.
DNN is intended solely for use within the Double N Protocol as described in this whitepaper and has no other designated purposes. The value and functionality of DNN are not guaranteed. DNN is not a security or investment product, and ownership of DNN does not entitle holders to any profit distribution, repayment claims, or intellectual property rights in relation to the Double N project team.
The purchase of tokens carries significant risks. You may lose all or a substantial portion of the funds used to purchase tokens, and the Double N project team makes no guarantees regarding the purchase price or the value of DNN. Before purchasing DNN based on this whitepaper, you should fully understand these risks and assess whether you are willing to accept them.
The information contained in this whitepaper may be translated into different languages or used in communication with various participants. There may be changes or inaccuracies in such translations or communications. This [English] version of the whitepaper published on the official website shall have the highest authority, and it is your responsibility to refer to the most authoritative version.
This whitepaper includes descriptions of future plans and implementations (hereinafter, “forward-looking statements”). These forward-looking statements are expressed using words or phrases such as “may,” “will,” “expect,” “anticipate,” “goal,” “forecast,” “intend,” “plan,” “seek,” “believe,” “potential,” “continue,” and “would.” They are based on reasonable assumptions and analyses considering the experience of the Double N project team, current circumstances, anticipated future developments, and other factors. However, risks and uncertainties inevitably exist, and the actual results and performance of the Double N project may differ from these forward-looking statements.
The Double N project team discloses and explains the following risks (potential risks). The Double N project team makes no representations or warranties of any kind regarding these risks. The responsibility for these risks rests entirely with DNN purchasers and participants in the Double N Protocol.
Potential Risks
The Double N Protocol, including DNN and other aspects of the Double N project, involves the following risks. Before making any decision to purchase or participate, you are advised to carefully review the following information and fully analyze and understand the relevant factors and risks. The risks include, but are not limited to, the following:
1. Financial Risk
DNN is not currently traded in the market. Even if DNN becomes available for trading on cryptocurrency exchanges in the future, there is no guarantee that a liquid market will develop or that trading activity will be sustained. The sale price of tokens during a token sale does not necessarily reflect the market price of DNN, and in some cases, the market price of DNN may fall below its initial sale price. DNN is not a currency issued by any central bank, government agency, or quasi-governmental institution. The trading of DNN is determined solely by market participants' agreements, and no entity is obligated to purchase DNN from any holder.
DNN tokens that remain unsold during the token sale may be issued or sold at a later date. Such additional sales may increase the supply of DNN, potentially leading to a decline in market price and negatively affecting future trading values.
Potential users, including individuals and businesses, may not adopt the Double N Protocol or use DNN even after its launch, and awareness of the project may remain limited. Additionally, there is a possibility that the operation of the Double N Protocol may become unfeasible, in which case the value of DNN could significantly decrease or become entirely lost.
Potential users, including individuals and businesses, may not adopt the Double N Protocol or use DNN even after its launch, and awareness of the project may remain limited. Additionally, there is a possibility that the operation of the Double N Protocol may become unfeasible, in which case the value of DNN could significantly decrease or become entirely lost.
2. Regulatory Risk
Tokens and cryptocurrencies are subject to scrutiny by regulatory authorities worldwide, including the U.S. Securities and Exchange Commission (SEC). In various jurisdictions, including the United States, DNN may be classified as a security. If DNN is deemed a security under applicable laws, restrictions may be imposed on holding amounts above certain thresholds, transferring DNN, or selling DNN, and additional conditions may be required for its sale. Furthermore, businesses facilitating the exchange or transfer of DNN may face regulatory limitations.
The Double N project team has not obtained formal opinions from regulatory authorities in any jurisdiction regarding whether DNN or its token sale agreements qualify as securities. Consequently, depending on future regulatory determinations, DNN and related agreements may be deemed securities, in which case the Double N project team may be required to undertake registration procedures for DNN as a security.
The risk of increased government regulation in the blockchain industry is growing. Depending on the scope and intensity of such regulations, blockchain-related businesses may face significant direct and indirect impacts. To mitigate these risks, the Double N project team is working with law firms in key jurisdictions such as Singapore and South Korea, implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures for all participants, and ensuring compliance with relevant laws to promote the sustainable development of blockchain technology within legally permissible boundaries.
However, despite these efforts, future regulatory actions may negatively impact the Double N Protocol. Additionally, responding to government regulations on DNN may require substantial time and resources.
3. Technology Risk
Loss of access to a private key associated with a digital wallet may result in the permanent loss of DNN or other assets. If a private key is lost, destroyed, or compromised, the holder will be unable to access their blockchain-based digital assets, and the Double N project team has no ability to restore or recover lost assets.
Smart contract technology is still in its early stages of development and carries significant operational, technical, regulatory, and financial risks. Smart contracts may not function as intended, and potential vulnerabilities, defects, or other technical issues could result in malfunctions or the loss of DNN or other assets.
Since the Double N Protocol operates on software and network-based systems, it is susceptible to potential errors. These errors may arise not only from inherent technical flaws within DNN and the Double N Protocol itself but also from external factors beyond the control of the Double N project team, such as network instability, policy changes, access restrictions, system failures by telecommunications providers, or technical connectivity issues. Such errors may negatively impact the functionality of the Double N Protocol and the value of DNN.
As an online-based service, the Double N Protocol is exposed to risks such as hacking, malware, and cyberattacks. Specifically, the Double N project team, DNN, the Double N Protocol, and users’ digital wallets may be targeted by various forms of cyberattacks, including denial-of-service (DoS) attacks, Sybil attacks, spoofing, smurfing, and malware attacks.
To mitigate these risks, the Double N project team may conduct regular security audits of smart contracts through leading blockchain security firms, implement backup systems and fail-safe mechanisms, and operate a bug bounty program. However, these measures are subject to the discretion of the Double N project team and may change over time, with no guarantee of effectiveness.
4. Market and Adoption Risk
Digital assets operate within a relatively small and highly volatile market, leading to significant fluctuations in price and trading volume. Various microeconomic and macroeconomic factors may cause rapid changes in the value of digital assets, which could directly impact the price and liquidity of DNN.
To mitigate these risks, the Double N project team may conduct educational webinars and workshops for community participants, collaborate with entertainment brands and platforms, and implement a vesting schedule for token releases to distribute tokens gradually. However, these measures are subject to the discretion of the Double N project team and may change over time, with no guarantee of effectiveness.
5. Operational Risk
The operation of the Double N project may be disrupted, or the Double N project team may be dissolved due to unforeseen external factors.
The industry in which the Double N project operates is still evolving, and there is uncertainty regarding its growth potential. Unlike traditional industries, there is limited historical business data to reference. Given these circumstances, accurately assessing the business outlook in light of the potential risks and challenges faced during the project’s development is inherently difficult.
The information provided by the Double N project team regarding the Double N project, DNN, or the Double N Protocol may be incomplete or difficult to interpret. Additionally, significant future changes may not be communicated in a timely manner. The Double N project team is not obligated to provide the latest updates regarding the Double N project, including its milestones, ongoing developments, or planned initiatives.
There is a possibility that competing networks may emerge, utilizing the same or similar code/protocols to implement services that are functionally comparable to the Double N Protocol. Such competition could negatively impact the Double N project.
To mitigate these risks, the Double N project team may establish a dedicated Risk Management Team, introduce quorum requirements and veto rights for DAO voting to prevent governance attacks, and publish quarterly risk assessments and performance reports. However, these measures are subject to the discretion of the Double N project team and may change over time, with no guarantee of effectiveness.
6. Content and IP Risk
Third parties may file lawsuits, claims, or other legal actions against the Double N project team alleging intellectual property infringement. Such disputes, if they arise, could negatively impact the Double N project.
To mitigate these risks, the Double N project team may collaborate with legal professionals to verify and protect intellectual property rights before onboarding, content. Additionally, industry experts may review content to maintain quality standards. However, these measures are subject to the discretion of the Double N project team and may change over time, with no guarantee of effectiveness.
7. Other Risk
Blockchain-based digital assets may lack effective legal remedies due to the nature of the technology, its structural characteristics, and the absence of relevant regulations. Purchasers may not have viable legal recourse if their rights to DNN are infringed by third parties.
Since the Double N Protocol involves the storage and transmission of participant data, it is exposed to security risks, including potential cyberattacks that could lead to unauthorized access and data breaches. While the Double N project team intends to implement security measures to prevent unauthorized access to its databases, various factors may still lead to data breaches. In such cases, legal and financial losses may occur, as well as reputational damage and a decline in trust in the Double N Protocol and DNN, potentially negatively impacting the Double N project.
Additionally, the Double N project team may be required to disclose token users’, purchasers’, and holders’ personal information to government authorities, regulatory agencies, or other third parties in compliance with applicable laws, regulations, or orders issued by administrative agencies or courts.
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