Risk Disclosure and Investment Risk Notice

Last Updated: March 2, 2026 · Effective Date: March 2, 2026

IMPORTANT: PLEASE READ THIS ENTIRE NOTICE CAREFULLY before using the AlfaDAO Platform or participating in any deal campaign. By using the Platform or participating in any deal campaign, you acknowledge that you have read, understood, and accepted all of the risks described herein.

1. Regulatory Status Disclaimer

AlfaDAO is NOT registered with any regulatory authority. Specifically:

AlfaDAO is not registered with the U.S. Securities and Exchange Commission (SEC) as a securities exchange, broker-dealer, investment adviser, investment company, or in any other capacity.
AlfaDAO is not a member of the Financial Industry Regulatory Authority (FINRA).
AlfaDAO is not registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading advisor, commodity pool operator, or futures commission merchant.
AlfaDAO is not registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business, except as may be expressly disclosed.
AlfaDAO is not registered with any state securities regulator, state banking regulator, or foreign financial regulatory authority, except as may be expressly disclosed.

No regulatory authority has reviewed, approved, or endorsed the Platform, any deal campaign, any token allocation, or any materials presented on the Platform.

2. Not Financial or Investment Advice

The Platform provides information about digital asset projects and facilitates community participation in deal campaigns. This information is provided for informational and educational purposes only and does not constitute:

Investment advice or financial advice
Trading advice or tax advice
Legal advice
A recommendation or solicitation to buy, sell, or hold any digital asset
An offer or solicitation of an offer to buy or sell securities
A personalized recommendation based on your financial situation

You should consult with qualified financial, legal, and tax professionals before making any investment decision.

3. No Guarantee of Returns

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

There is no guarantee that any deal campaign will generate positive returns.
There is no guarantee that any token received through a deal campaign will have or maintain any value.
Historical returns of previous deal campaigns, if disclosed, are not a reliable indicator of future performance.
Any projections, estimates, or forward-looking statements are speculative and should not be relied upon.

4. Risk of Total Loss

YOU MAY LOSE THE ENTIRE AMOUNT OF YOUR CONTRIBUTION.

Participation in deal campaigns is speculative and involves a high degree of risk. You should only participate with capital that you can afford to lose entirely without affecting your financial security or lifestyle. Do not participate with funds needed for living expenses, emergency savings, retirement funds, borrowed money, education funds, or any other funds you cannot afford to lose.

5. No Insurance Protection

Your contributions and token allocations are NOT protected by:

The Federal Deposit Insurance Corporation (FDIC) — AlfaDAO is not a bank, and your funds are not bank deposits.
The Securities Investor Protection Corporation (SIPC) — AlfaDAO is not a registered broker-dealer.
Any state guaranty fund or similar insurance program.
Any private insurance policy maintained by AlfaDAO (unless expressly disclosed).

If AlfaDAO ceases operations, suffers a security breach, or becomes insolvent, you may have no recourse to recover your contributions or token allocations.

6. Cryptocurrency and Digital Asset Risks

6.1 Price Volatility

Digital assets, including cryptocurrencies and tokens, are subject to extreme price volatility. Prices can fluctuate significantly within short periods, including rapid and substantial declines in value (including to zero), extended periods of illiquidity where assets cannot be sold at any price, price manipulation by large holders ("whales"), and flash crashes caused by technical issues, liquidations, or market panic.

6.2 Liquidity Risk

Tokens received through deal campaigns may have little or no trading volume.
There may be no secondary market for certain tokens.
Vesting schedules and lock-up periods may prevent you from selling tokens when you wish.
Even when markets exist, slippage and thin order books may result in significant losses upon sale.
Token listings on exchanges are not guaranteed and may be delayed or never occur.

6.3 Regulatory and Legal Risk

The regulatory status of digital assets is uncertain and rapidly evolving across all jurisdictions.
Governments may ban, restrict, or heavily regulate the purchase, sale, or use of certain digital assets.
Regulatory actions could render certain tokens illegal to hold, trade, or transfer.
Tax treatment of digital assets varies by jurisdiction and is subject to change.
Enforcement actions against projects, exchanges, or intermediaries could affect the value and accessibility of tokens.

6.4 Smart Contract Risk

Smart contracts are computer programs deployed on blockchain networks. They may contain bugs, vulnerabilities, or design flaws.
Smart contract exploits have resulted in the loss of billions of dollars across the digital asset ecosystem.
Once deployed, smart contracts are generally immutable and cannot be easily patched or corrected.
AlfaDAO's own smart contracts, as well as those of projects in deal campaigns, are subject to these risks.
Security audits, while valuable, do not guarantee the absence of vulnerabilities.

6.5 Custody and Wallet Risk

You are responsible for the security of your own cryptocurrency wallet and private keys.
Loss of private keys results in permanent and irreversible loss of access to your digital assets.
Wallets may be compromised through phishing attacks, malware, social engineering, or other methods.
AlfaDAO does not custody your assets and cannot recover lost or stolen funds.

6.6 Protocol and Project Risk

Projects featured in deal campaigns are typically early-stage and have a high failure rate.
Project teams may abandon development, misallocate funds, or fail to deliver on promises.
Projects may be fraudulent, regardless of AlfaDAO's due diligence efforts.
Token economics may be unsustainable, inflationary, or designed to benefit insiders.
Projects may suffer from governance attacks, team disputes, or organizational dysfunction.

6.7 Network and Technology Risk

Blockchain networks may experience congestion, delays, forks, or outages.
Network upgrades or changes may affect the functionality or value of tokens.
Consensus mechanism failures or 51% attacks could compromise transaction finality.
Bridge protocols used for cross-chain transactions carry additional security risks.

6.8 Stablecoin Risk

USDC, USDT, and other stablecoins used for contributions are not U.S. dollars.
Stablecoins may depeg from their intended value.
Stablecoin issuers may face regulatory action, insolvency, or operational failures.
Redemption of stablecoins for fiat currency is not guaranteed and depends on the issuer's reserves and operational status.

6.9 Concentration Risk

Participating in deal campaigns may result in concentrated exposure to specific tokens, sectors, or blockchain ecosystems. Lack of diversification increases risk.

6.10 Information Asymmetry

Project insiders, team members, and early investors may have material non-public information that is unavailable to deal campaign participants. Token unlock schedules may create selling pressure when large allocations vest. AlfaDAO cannot guarantee that all material information about a project has been disclosed.

7. Platform-Specific Risks

7.1 AlfaDAO Operational Risk

AlfaDAO is an early-stage platform and may cease operations at any time, with or without notice.
The AlfaDAO team may make decisions that adversely affect your interests.
AlfaDAO's due diligence on deal campaigns is limited and does not constitute a guarantee or endorsement of any project.

7.2 NFT Membership Risk

The value of AlfaDAO membership NFTs may decrease, including to zero.
NFT smart contracts may contain vulnerabilities.
Secondary market liquidity for membership NFTs is not guaranteed.
AlfaDAO may modify membership terms, access levels, or benefits.

7.3 Governance Risk

DAO governance decisions may not align with your interests.
Governance mechanisms may be exploited or manipulated by large token/NFT holders.

7.4 Counterparty Risk

AlfaDAO interacts with multiple counterparties, including projects, exchanges, and service providers. The failure, fraud, or insolvency of any counterparty could affect deal campaigns and token distributions.

8. Suitability

Participation in AlfaDAO deal campaigns is suitable only for persons who:

Are sophisticated investors with experience in digital asset investments
Understand the technology underlying blockchain networks, smart contracts, and digital assets
Can bear the complete loss of their entire contribution
Have no need for liquidity with respect to their contribution
Understand that tokens may be subject to long vesting periods and lock-ups
Have consulted with their own financial, legal, and tax advisors
Meet all eligibility requirements, including accredited investor requirements where applicable
Accept the risks described in this Notice and in the Terms of Service

If you do not meet all of the above criteria, you should not participate in deal campaigns.

9. Conflict of Interest Disclosure

AlfaDAO and its members, contributors, affiliates, and associated persons may:

Hold positions in tokens or projects featured in deal campaigns
Receive compensation, fees, carried interest, or token allocations from projects
Have financial relationships with projects, exchanges, or other counterparties
Make decisions that benefit AlfaDAO's financial interests

These potential conflicts of interest may affect the objectivity of information presented on the Platform.

10. Tax Disclaimer

AlfaDAO does not provide tax advice. Participation in deal campaigns and receipt of token allocations may have tax consequences in your jurisdiction, including income tax on token distributions, capital gains tax on the sale or exchange of tokens, reporting obligations for foreign asset holdings, and gift tax implications for token transfers. You are solely responsible for determining and satisfying your tax obligations. Consult with a qualified tax professional.

11. Acknowledgment

BY USING THE ALFADAO PLATFORM OR PARTICIPATING IN ANY DEAL CAMPAIGN, YOU ACKNOWLEDGE AND AGREE THAT:

You have read and understood this entire Risk Disclosure and Investment Risk Notice.
You understand and accept all of the risks described herein, as well as any risks not specifically described but inherent in digital asset investments.
You are making your own independent decision to participate and are not relying on AlfaDAO for investment advice.
You have the financial sophistication and ability to evaluate the risks.
You can afford to lose the entire amount of your contribution.
You have consulted with your own advisors to the extent you deem necessary.
You will not hold AlfaDAO or any of its members, contributors, or affiliates liable for any losses.

This Risk Disclosure and Investment Risk Notice was last reviewed on March 2, 2026.