13. Risks

Tokens carry multiple risks. In any case, the risks could generate the partial or total loss of the tokens or their value.

By purchasing PFACE, the token holder and buyer assumes and fully understands all the risks involved in a token, and in no case shall they have the right to demand compensation from the issuer if the token loses value or any other adverse event occurs for the purchasing holder.

Most of them will be mentioned below, although there may be others: 13.1. Risks associated with the offer and/or negotiation: Risk of illiquidity. It is possible that the token in question cannot be included in a secondary market or that there is a lack of liquidity in OTC (over the counter) markets. The issuer will not be responsible for the fluctuations that the token in question may suffer in any type of market or that such types of markets allow the token to be listed, which may entail illiquidity risks. Even in the event that the token were to be listed on a third-party platform, said platforms may not have sufficient liquidity or even face risks of regulatory or compliance changes, therefore being susceptible to structural modification, failures, falls or manipulations. . In addition, to the extent that a third-party platform lists the token in question, granting an exchange value to the token (either in cryptocurrencies or fiduciary money), said value may suffer volatility as occurs in any market. The buyers in this type of assets assume all the risks associated with speculation and risks mentioned above, without the right to compensation of any kind by the issuer; 13.2 Risks Associated with the execution of the project and/or the issuer: Risk of future information. Certain information contained in this document is forward-looking, including financial projections and business growth projections. Such forward-looking information is based on what the company's management believes to be reasonable assumptions, and there can be no assurance that the results are actual. Future events could differ materially from anticipated factual situations; Unforeseen risks. Cryptographic tokens are a recently created technology that is in the testing phase. There are risks associated with its acquisition, storage, transmission and use, including some that are difficult to anticipate. Said risks can materialize even more with unforeseen variations or derived from combinations of the aforementioned risks; Risk of variation of regulations. Blockchain technology may lead to different jurisdictions applying existing regulations or introducing new regulations that address applications based on blockchain technology, which may be contrary to the current configuration of smart contracts and which may, among other things, lead to substantial modifications to them, including their termination and the loss of tokens for buyers. It is also possible that there are different regulations in different latitudes that could affect buyers; Risk of failure and/or abandonment of the project. The development of the project proposed by the issuer in this white document may be impeded and/or ceased for multiple reasons, including lack of interest on the part of the market and/or lack of financing and/or lack of commercial success and/or Perspectives and/or forceful commercial actions of the existing and/or future competition. This issuance of tokens does not guarantee that the goals set forth in this document will be fully or partially developed or that it will surely generate benefits for those who hold tokens offered by the issuer; Risk due to competitor actions. The issuing trading company could compete with other companies that provide similar services, which could have a negative impact on the services provided by the issuing trading company; 13.3 Risks associated with the tokens and the technologies implemented: High risk. The products offered have a high implicit risk. The value of the tokens can experience variations up and down and there is a possibility that a buyer will not recover the capital initially used. Changes in tax rates and/or possible liens and/or relief may occur. The aforementioned tax impositions and deductions always refer to those in force and their value will depend on the circumstances of each buyer. Participation in this type of project must always be done taking into account all the information provided by the issuer and by the legal regulations of each country applicable to the buyer; Software risk. The computer code (smart contract) by which the referred tokens are traded are based on the blockchain protocol. Any malfunction, crash and/or abandonment of the blockchain project can have adverse effects on the operation of the tokens in question. On the other hand, technological advances in general and in cryptography in particular, such as the development of quantum computing, can bring with them risks that lead to the malfunction of these Tokens. Smart Contracts and software on which they are based are at an early stage of development. There is no guarantee or way to ensure that the issuance of tokens and their subsequent trading may be interrupted or suffer any other type of error, so there is an inherent risk that defects, failures and vulnerabilities may occur that may lead to loss of the funds contributed or the tokens obtained. There is a risk of pirate and/or hacker attacks on the technological infrastructure used by the issuer and on essential networks and technologies. As a result, the issuer may be partially, temporarily and/or even permanently prevented from carrying out its business activities. In the case of proof-of-work consensus mechanisms in the blockchain network, it could be the case that someone could control more than 50% of the computational power of the blockchain miners in a so-called 51% attack and therefore Therefore, it takes control of the network (the block chain). Using more than 50% of the mining power (hashing power), the attacker will always represent the majority, which means that he can impose his version of the blockchain. In principle, this is also possible with less than 51% mining power. Once the attacker has gained control of the network, he could reverse or redirect the transactions he initiated, so that it would be possible to "double spend" (i.e. make multiple transactions of the same token). The attacker can also block others' transactions by refusing confirmation. There could also be other computer attacks on the blockchain of the network used, the software and/or the hardware used by the issuer. In addition to hacker attacks, there is a risk that the issuer's employees or third parties may sabotage the technology systems, which may cause the issuer's hardware and/or software systems to fail. This could also have a negative and/or destructive impact on the business of the issuer; Custody risks and/or loss of private keys. Tokens issued by the Issuer can only be acquired using a digital wallet compatible with the blockchain network used by the issuer, so it is necessary for the acquirer/buyer of tokens to have their respective private key and password. The private key, as a rule, is usually encrypted by a password. The acquirer of the Issuer's tokens acknowledges, understands and accepts that, if their private key or password for the tokens obtained and associated with their digital wallet associated with the network used is lost or stolen, they could lose access to their tokens automatically. permanent. In addition, any third party that has access to the aforementioned private key could misappropriate the tokens contained in the digital wallet in question. Any error or malfunction caused by or related in any way to the digital wallet and/or token storage system in which the acquirer wishes to receive their tokens could also cause their losses; Risk of theft. The Smart Contracts and the software platform on which they work may be exposed to computer attacks and/or hacking by third parties, either through malware attacks and/or denial of service attacks and/or consensus attacks and/or or Sybil attacks and/or smurfing and/or spoofing. As a consequence of these attacks, it could result in the theft and/or loss of invested capital and/or acquired tokens and, in turn, could lead to the non-achievement of the objectives set by the issuer in this technical document; Risk of incompatible wallet services. The digital wallet service provider or digital wallet used to receive tokens must comply with the ECR-20 token standard to be technically compatible with the tokens subject to the issuance of this white paper. Failure to ensure such compatibility may result in the buyer not gaining access to their tokens.

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