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Associated Challenges and Risks
It is the responsibility of any purchaser of KAH to inform themselves of and to observe and comply with all applicable laws and regulations of any relevant jurisdiction. Prospective purchasers for any KAH shall be expected to consider the risk factors identified in this section. Suppose any of the indicated risks were to materialise. In that case, they could negatively impact the Issuer's finances and operational performance, which can hinder the ability of the Issuer to fulfil its obligations under this whitepaper.
The challenges and risks are identified by the board of administration of the Issuer as of the date of registration of this whitepaper. This does not exclude the possibility of other risk threats. The purchaser must know that the impact on the Issuer may be heightened due to several simultaneous risks.
You acknowledge and agree that numerous risks are associated with purchasing KAH, holding KAH, and using KAH for participation in the Katheer Project. In the worst scenario, this could lead to the loss of all or part of the KAH which had been purchased. IF YOU DECIDE TO PURCHASE KAH, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:
The regulatory status of KAH and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of virtual currencies has become a primary target of regulation in all major countries worldwide. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including KAH and/or the Katheer Project. Regulatory actions could negatively impact KAH and/or the Katheer Project in various ways. The Foundation, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. After consulting with a wide range of legal advisors and continuous analysis of virtual currencies' development and legal structure, a cautious approach will be applied towards the sale of KAH. Therefore, for the token sale, the sale strategy may be constantly adjusted in order to avoid relevant legal risks as much as possible.
Market risk is the possibility for an investor to experience losses on his investments. Various market risks exist, such as country or systemic risks. Bitcoins or Ethereum holders may gain or lose value due to the inherent volatility of such investments.
As of the date hereof, the Katheer Project is still under development. Its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this white paper contains the most current information about the Katheer Project, it is incomplete. It may still be adjusted and updated by the Katheer team from time to time. The Katheer team has no ability and obligation to keep holders of KAH informed of every detail (including development progress and expected milestones) regarding the project to develop the Katheer Project; hence insufficient information disclosure is inevitable and reasonable.
Various types of decentralised applications and networks are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative networks could be established that utilise the same or similar code and protocol underlying KAH and/or the Katheer Project and attempt to re-create similar facilities. The Katheer Project may be required to compete with these alternative networks, which could negatively impact KAH and/or the Katheer Project.
The development of the Katheer Project dramatically depends on the continued cooperation of the existing technical team and expert consultants, who are highly knowledgeable and experienced in their respective sectors. Losing any member may adversely affect the Katheer Project or its future development. Further, stability and cohesion within the team are critical to the overall development of the Katheer Project. There is the possibility that conflict within the team and/or the departure of core personnel may occur, resulting in a negative influence on the project in the future.
Counterparty risk is also known as default risk. It is the risk to each party of a contract that the counterpart will no longer be able to fulfil its contractual obligations. Token holders having accounts or wallets with an exchange company usually face a counterparty risk. If the exchange company becomes the subject of bankruptcy proceedings, the coins and fiat amounts will most probably get diluted in the liquidation proceeds.
There is the risk that the development of the Katheer Project will not be executed or implemented as planned for a variety of reasons, including, without limitation, the event of a decline in the prices of any digital asset, virtual currency or KAH, unforeseen technical difficulties, and shortage of development funds for activities.
Security risk is the risk of getting holdings stolen. Token holders bear an inherent risk related to security, as hacking is a massive threat in the crypto sphere. Token holders using hot wallets bear the risk of being hacked, or their providers being hacked, and having their money stolen.
Hackers or other malicious groups or organisations may attempt to interfere with KAH and/or the Katheer Project in various ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Foundation, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of KAH and/or the Katheer Project, which could negatively affect KAH and/or the Katheer Project.
Further, the future of cryptography and security innovations are highly unpredictable, and advances in cryptography, or technical advances (including, without limitation development of quantum computing), could present unknown risks to KAH and/or the Katheer Project by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.
In addition, the potential risks briefly mentioned above are not exhaustive, and there are other risks (as more particularly set out in the Terms and Conditions) associated with your purchase, holding and use of KAH, including those that the Chain or the Distributor cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Foundation, the Distributor, their respective affiliates, and the Katheer team, as well as understand the overall framework, mission and vision for the Katheer Project prior to purchasing KAH or to purchasing KAH.