Risks Disclosures & Minimization
Risk associated with the leakage of user data uP does not store metadata on its servers and uses end-to-end encryption.
Risk associated with the lack of advertisers An increase in the number of content production, new introductions of influencer integrations
Risk of not achieving a stable cash flow uP has introduced its collateralized buy and burn fintech features allowing up to diversify its sources of buy and burn.
Risk of competition uP diversifies the functionality, creating its own ecosystem aimed at expanding user functionality.
Currency Risk The base asset is denominated in Pulsechain (PLS) and carries additional currency risks, including (but not limited to) the scenario of the exchange rate weakening or strengthening against the US dollar from the time of purchasing uP token or PLS.
Market Risk This risk manifests in the possibility of an unfavorable change in the price (value) of the Base Asset, as a result of which uP token may lose part or all of the valuation on the Base Asset basis.
Risk of Using Foreign Securities or Financial Instruments as the Base Asset Consider the applicable law to relations related to the issuance of smart contract instruments, payments on them, and disputes with issuers of foreign securities and financial instruments are not subject to local courts. This risk manifests in that all relationships arising from the interaction with uP Smart Contracts as is, including its signing, legal action, execution, interpretation, non-performance, or improper performance, need to consult with specialists in the field to assess independently bears the risks of actions/inactions of consultants, translators, and other specialists, as well as the risk of the absence of a consultant, translator, and other specialist willing to provide the requested service, and the risk of significant cost or loss. .
Operational (Technical) Risk The risk of incurring losses due to the peculiarities of procedures, rules, and methodologies (for example, those applied during transactions, fees, exchanges) for determining the values of the Base Asset (BA), exchange rates, and other information significant for uP Smart Contract (or the Contract), as well as incorrect and/or untimely calculation, publication, technical errors, or failures of the software and hardware used.
Tax Risk The risk of negative consequences, including financial ones, due to different approaches by tax authorities to the taxation of income under the Contract. This includes differences in defining any of the following tax elements: taxable object, tax base, tax period, tax rate, procedure for calculating the tax, procedure and deadlines for paying the tax, as well as risks of changes in tax legislation, varying interpretations of tax law norms, and the uncertainty inherent in interactions with tax authorities and conducting legal proceedings.
Liquidation Risk Risk of the liquidation of the Vaults (the issuer of the loans is Liquid Loans) or the non-occurrence of circumstances for the alienation of the BA by the counterparty under the Contract. The token holder may not receive any payment as the Final Settlement Price under the Contract or may receive a loss. In the event of Vault liquidation, the counterparty to the Contract, as the holder of the total amount of the Base Asset, will receive payments only in the order established by applicable smart contract, which may lead to the absence of payments or significant waiting times.
Infrastructure Risk, Including Custodial Risk of Admin Keys The risk associated with the actual lack of ability for owners or holders of tokens to function properly, including but not limited to when underlying infrastructure fails. This includes the inability to manage or transfer assets due to technical issues, software bugs, or external attacks on the infrastructure, such as exchanges or wallet services.
Liquidity on the Secondary Market The Contract does not have official secondary market. This means that automated market makers may be used to trade positions with its own array of risks potentially leading to a complete loss.
Market Sentiment Market sentiment refers to the overall attitude or tone that investors have towards a particular asset or market. It can significantly impact the price and liquidity of the asset. Factors such as news, social media, and public opinion can sway market sentiment, leading to rapid and unpredictable price movements. Investors should be aware of the potential volatility caused by shifts in market sentiment and plan their investments accordingly.