Papo Wealth Capital Risk Disclosure

1. Market Risks

• Cryptocurrency Volatility: Cryptocurrencies, including Bitcoin (BTC), BitTorrent (BTT), Tron (TRX), and other tokens, are highly volatile. Price fluctuations may result in significant gains or losses, and past performance is not indicative of future results.
• Decentralized Finance (DeFi): The DeFi space is an emerging market, subject to regulatory changes, market instability, and liquidity issues. Investments in DeFi platforms and liquidity pools may lead to loss of funds due to adverse market conditions or technical failures.

2. Liquidity Risks

• Liquidity Pools: Papo Wealth Capital’s strategy includes providing liquidity for certain tokens, which may expose you to liquidity risk. Liquidity pools may experience low trading volume, making it difficult to buy or sell assets at the desired price.
• Company Token Holdings: Our decentralized trading strategy, involving BTT, BTC, TRX, and ICYMI tokens, depends on active market liquidity. In low liquidity situations, token prices may be volatile, and you may face difficulties exiting positions.

3. Security Risks

• Custodial Risk: Papo Wealth Capital holds reserves of Bitcoin on the Luno Business Exchange and other digital assets in decentralized wallets. While we follow stringent security measures, hacking, fraud, and technical vulnerabilities remain possible, which could result in the loss of assets.
• Smart Contract Vulnerabilities: The smart contracts used for liquidity pools and DeFi services may contain bugs or security flaws. If exploited, these vulnerabilities could lead to financial loss or exposure to legal and regulatory issues.

4. Regulatory Risks

• Lack of Regulatory Protection: Cryptocurrencies and DeFi projects are generally not regulated by traditional financial authorities. This may limit the protection available in the event of disputes or fraud. Regulations may change over time, potentially affecting the legality or accessibility of certain services offered by Papo Wealth Capital.
• Jurisdictional Compliance: Papo Wealth Capital operates from South Africa, and clients must ensure that their participation in our services complies with their country’s legal and regulatory requirements.

5. Counterparty Risks

• Third-Party Platforms: Papo Wealth Capital relies on third-party exchanges, liquidity pools, and custodial services. Any disruptions or failures on these platforms may affect your ability to access funds or execute trades.
• Exchange Risks: The exchanges used for centralized trading, such as Luno, may face operational disruptions, hacking, or financial difficulties, leading to potential losses.

6. Investment Risks

• No Guaranteed Returns: All investments with Papo Wealth Capital carry a risk of loss. There are no guarantees of profit or return on investments, and investors should be prepared to lose the entirety of their investment.
• Decentralized Tokens: The tokens associated with Papo Wealth Capital, including the company’s security token, are subject to market forces and may become illiquid or lose value entirely.

7. Tax and Legal Implications

• Taxation of Cryptocurrency: The tax treatment of cryptocurrency transactions varies by jurisdiction. You are responsible for understanding and complying with the tax laws of your country. Papo Wealth Capital does not provide tax advice.
• Legal Status of Tokens: The legal classification of cryptocurrencies and tokens can vary between jurisdictions. It is your responsibility to ensure that your participation in cryptocurrency investments complies with local laws.

8. Operational Risks

• Technological Failures: The decentralized and digital nature of blockchain systems exposes users to potential technical issues, including network congestion, software bugs, or outages, which may delay or prevent access to your funds or transactions.
• Company Reserve Management: Papo Wealth Capital holds a volatile share price tied to Bitcoin reserves rather than fiat currency. Fluctuations in Bitcoin’s price could affect the overall value of company shares, posing an operational risk to shareholders.

9. Client Responsibility

• Due Diligence: You are responsible for conducting your own research and due diligence before engaging with Papo Wealth Capital’s services. Investments in cryptocurrencies and DeFi projects should only be made after careful consideration of personal financial circumstances, risk tolerance, and investment goals.
• Professional Advice: Papo Wealth Capital does not provide personal financial, legal, or tax advice. We recommend seeking independent professional advice before making investment decisions.