Risk Disclosure Statement

1. Introduction

‍This Risk Disclosure Statement is designed to inform you comprehensively about the inherent risks associated with engaging in Buburuza™'s Services, which encompass AI-powered digital banking, cryptocurrency operations, stablecoin transactions, tokenized assets, lending, wealth management, and real-world asset tokenization via the Buburuza Real-world assets platform. Our innovative ecosystem integrates traditional finance with decentralized technologies, offering opportunities for growth but also exposing users to significant uncertainties. This statement is not exhaustive and does not cover all possible risks; it serves as a general guide to help you make informed decisions. By accessing or using our Services, you acknowledge that you have carefully read, fully understood, and voluntarily accept these risks, and you agree to bear full responsibility for any resulting losses. We strongly recommend consulting independent financial, legal, and tax advisors before proceeding, as individual circumstances vary.

2. General Risks

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Engaging with financial services inherently involves uncertainties that can lead to partial or total loss of capital. Buburuza™ provides no guarantees, warranties, or assurances regarding the performance, stability, or outcomes of our Services. Key general risks include:

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Market conditions are volatile and unpredictable, influenced by economic, geopolitical, and technological factors beyond our control. Asset values, including fiat currencies, cryptocurrencies, and tokenized real-world assets (e.g., via the Buburuza Real-world assets platform), can fluctuate dramatically, resulting in significant losses even in short periods. Our AI-driven tools, while advanced, rely on data inputs and algorithms that may not foresee all market shifts, and past performance data used in our wealth management or lending features is not indicative of future results.

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We do not offer personalized investment, financial, legal, or tax advice; all information on our platforms is educational and general in nature. Relying on it without professional consultation could lead to unsuitable decisions. Regulatory environments are evolving rapidly, and changes in laws (e.g., crypto bans, tax reforms) could adversely affect Service availability or asset values. Operational dependencies on third-party providers introduce risks of disruptions, and force majeure events (e.g., cyberattacks, natural disasters) may interrupt access without liability on our part.

3. Risks Associated with Digital Assets (Cryptocurrencies, Stablecoins, Tokens)

‍Digital assets represent a high-risk, emerging class subject to extreme volatility and technological uncertainties. Prices of cryptocurrencies and tokens (including our Buburuza Token) can surge or plummet due to market speculation, supply/demand dynamics, or external events, potentially resulting in total loss. Stablecoins, designed to maintain value pegs (e.g., to fiat currencies), are vulnerable to de-pegging from insufficient reserves, algorithmic failures, or market pressures, as seen in historical incidents like TerraUSD.

Liquidity risks mean some assets may be hard to sell quickly without significant price concessions, especially during market downturns. Technological vulnerabilities in blockchains, smart contracts, or our Buburuza-Chain could lead to hacks, exploits, or irrecoverable losses—transactions are irreversible once confirmed. Regulatory risks are pronounced; governments may impose restrictions, taxes, or bans on digital assets, impacting usability or value (e.g., potential changes in Comoros or Canadian laws). For self-sovereign wallets, loss or theft of your seed phrase results in permanent, unrecoverable asset forfeiture—we provide no backups or recovery services. Additionally, environmental concerns (e.g., energy-intensive mining) or forks/upgrades could devalue holdings.

4. Security and Operational Risks

‍Despite our robust measures, cybersecurity threats like hacking, phishing, or malware persist, potentially leading to unauthorized access or asset theft. Third-party risks arise from reliance on providers for services like cloud hosting or KYC verification; their failures could disrupt operations. System outages, AI algorithm errors, or blockchain congestion may delay transactions or access, causing opportunity losses. In lending/borrowing, counterparty defaults or collateral value drops could trigger forced liquidations at unfavorable prices. Global operations expose us to cross-border risks, including currency fluctuations and jurisdictional conflicts.

5. Risks Associated with Lending and Borrowing

‍Our AI-powered lending features involve credit risks where borrowers may default, leading to principal/interest losses for lenders. Collateralized borrowing carries liquidation risks if asset values decline sharply, potentially resulting in forced sales and substantial losses. Interest rate volatility, algorithmic underwriting errors, or market illiquidity could exacerbate these issues. Regulatory changes might restrict lending availability or impose new compliance burdens.

6. Your Responsibility

‍You bear sole responsibility for conducting thorough due diligence, understanding these risks, and ensuring compliance with your local laws. Secure your credentials (e.g., passwords, seed phrases) diligently—losses from user error or negligence are not compensable. By using Services, you represent that you are of legal age (18+), financially sophisticated, and capable of bearing potential total losses without recourse against Buburuza™, except in proven cases of our gross negligence or willful misconduct under applicable law.

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For questions, contact support@buburuza.com. This statement may be updated; review periodically.