RISKS
Despite all our efforts, a token carries many implicit risks, some of which we will mention below, but this does not mean that there are no others. These risks may result in the complete or partial loss of tokens or their value.
The token holder assumes and fully understands all the risks involving tokens before investing. In the event that the Token loses value or anything else occurs, the token Issuer may not, under any circumstances, compensate the token holder in anyway.
Offering and Trading Risks
Liquidity Risk
It is possible that the Token in question may not be listed on any secondary market or that there may be a lack of liquidity in markets.
The Company is not responsible for any fluctuations that the Token in question may suffer in any type of market or for the fact that such markets may allow the Token to be listed, which may entail liquidity risks. Even if the Token were to be listed on a third-party platform, such platforms may not have sufficient liquidity or even face risks of regulatory or compliance changes, thus being susceptible to failure, fall, or manipulation.
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 fiat money), such value may suffer volatility. As a buyer of this type of asset, the user assumes all risks associated with the aforementioned speculation and risks.
Risks Associated With the Execution of the Project and/or the Issuer
Forward-Looking Information Risk
Certain information contained herein 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 as to the actual results. Future events could differ substantially from those anticipated.
Unanticipated Risks
Cryptocurrencies, and in this case, this type of tokens, are a newly created technology that is still in the testing phase. In addition to the risks mentioned above, there are other risks associated with their acquisition, storage, transmission, and use, including some that can hardly be anticipated. Such risks may further materialize with unforeseen variations or arising from combinations of the above-mentioned risks.
Regulatory Risk
Blockchain technology allows for new forms of interaction, and certain jurisdictions may apply existing regulations or introduce new regulations
which may be contrary to the current configuration of smart contracts and may, among other things, result in substantial modifications to smart contracts, including their termination and the loss of tokens to the buyer.
The intention of this project is to comply with all the regulatory processes so it can be considered a fund and it can trade over the different instruments in the stock market. Nonetheless, we cannot ensure the complete approval of this project in the U.S .regulations or in any other part of the world.
Risk of Project Failure or Abandonment
The development of the project proposed by the Issuer herein may be impeded and stopped for different reasons, including lack of interest from the market, lack of funding, and lack of commercial success or prospects (e.g., caused by competing projects). This token issuance does not guarantee that the objectives set forth herein will be fully or partially developed or that it will bring benefits to the holder of tokens offered by the Issuer.
Competitive Risk
It is possible that other companies may provide services similar to that of the Company. The Company could compete with these other businesses, which could have a negative impact on the services provided by the Company.
Risks Associated With Tokens and the Technology Used.
High-Risk Product
This type of product has a high implicit risk. The value of tokens may fluctuate up and down, and a buyer may not recover the capital initially used.
There may also be changes in taxation and/or possible tax deductions. The aforementioned taxes and tax deductions always refer to those in force, and their value will depend on the circumstances of each buyer. Participation in such projects must always be made, taking into account all the information provided by the Issuer.
Software Risk
The smart contract by which the referred tokens are traded is based on the Ethereum protocol. Any malfunction, crash, or abandonment of the Ethereum project may cause 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, may bring risks that result in the malfunction of the Tokens in question.
Smart Contracts and the 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 marketing may be interrupted or subject to any other type of error, remaining an inherent risk of defects, failures, and vulnerabilities that may result in the loss of the funds contributed or the tokens obtained.
There is a risk of hacker attacks on the technological infrastructure used by the Issuer and on essential networks and technologies. As a result, the Issuer may be partial,
In the case of the Ethereum Proof-of-Work consensus mechanism, it could be the case that someone could control more than 50% of the computational power of blockchain miners in a so-called 51% attack and thus take control of the network (blockchain). Using more than 50% of the mining power (hash power), the attackers will always represent the majority, meaning they can impose their version on the blockchain.
In principle, this is also possible with less than 51% of the mining power. Once the attackers have gained control of the network, they could reverse or redirect initiated transactions so that "double-spending" (i.e., performing multiple transactions of the same Token) would be possible. The attacker can also block the transactions of others by denying confirmation.
Other computer attacks on the Ethereum blockchain, software, and/or hardware used by the Issuer could also occur. In addition to hacker attacks, there is a risk that the Issuer's employees or third parties may sabotage technological systems, which may result in the failure of the Issuer's hardware and/or software systems. This could also have a negative impact on the Issuer's business activities.
Risk of Custody / Loss of Private Keys
Tokens issued by the Issuer can only be acquired using an Ethereum digital wallet for which the token buyer has their respective private key and password. The private key, as a general rule, is usually encrypted by a password.
The Issuer's token Buyer acknowledges, understands, and agrees that in case of loss or theft of the private key or password, the tokens obtained and associated with the Ethereum digital wallet, the buyer may lose access to the tokens permanently. In addition, any third party with 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 or token storage system in which the buyer wishes to receive its tokens may also result in a loss of tokens.
Risk of Theft
The concept of Smart Contracts and the software platform on which they operate (i.e., Ethereum) maybe exposed to cyber-attacks or hacks by third parties, whether through malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Any of these attacks could result in the theft or loss of invested capital or acquired tokens which, in turn, could lead to the non-achievement of the objectives set forth by the Issuer herein.
Risk of Incompatible Wallet Services
The digital wallet service provider or the digital Wallet used to receive tokens must comply with the ECR-20 token standard to be technically compatible with such tokens. Failure to ensure such compliance may result in the investor not gaining access to their tokens.
Healthcare Theme Investment Objective
Long-term growth capital. Principal Investment Strategies: Genomic and healthcare theme-based investment strategy invests primarily in domestic and foreign equity securities of companies across multiple sectors, including healthcare, information technology, materials, energy, and consumer discretionary, that are relevant to the investment theme of the genomics. The Adviser believes companies relevant to this theme are those that KTR believes are substantially focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in artificial intelligence, bigdata, genomics into their business, such as by offering new products or services that rely on genomic sequencing, analysis, synthesis or instrumentation. These companies may include ones that develop, produce, manufacture or significantly rely on or enable bionic devices, bio-inspired computing, bioinformatics, molecular medicine, and agricultural biotechnology. Material Risks: Equity Securities Risk; Foreign Securities Risk (including Depositary Receipts Risk); Future Expected Genomic Business Risk; Health Care Sector Risk; Issuer Risk; Large-Capitalization
Companies Risk; Management Risk; Market Risk; Market Trading Risk; Innovative Technology Risk; Micro-Capitalization Companies Risk; Small- and Medium-Capitalization Companies Risk and Technology and Cyber Security Risks.
Artificial Intelligence & Robotics Theme Investment Objective
Long-term growth capital. Principal Investment Strategies: Biotech, artificial intelligence, and robotics theme investment strategy invest primarily in domestic and foreign equity securities of companies that are relevant to the investment theme of Artificial Intelligence & Robotics. The Adviser believes companies relevant to this theme are those that KTR expects to focus on and benefit from the development of new products or services, technological improvements, and advancements in scientific research related to, among other things, disruptive innovation in energy ("energy transformation companies"), automation and manufacturing ("automation transformation companies"), materials, and transportation. KTR considers a company to be an energy transformation company if it seeks to capitalize on innovations or evolutions in (i) ways that energy is stored or used; (ii) the discovery, collection, and/or implementation of new sources of energy, including unconventional sources of oil or natural gas and/or (iii) the production or development of new materials for use in commercial applications of energy production, use or storage. KTR considers a company to be an automation transformation company if it is focused on humans capitalizing on the productivity of machines, such as through the automation of functions, processes, or activities previously performed by human labor or the use of robotics to perform other functions, activities, or processes. Material Risks: Equity Securities Risk; FinTech Risk; Foreign Securities Risk (including Depositary Receipts Risk); Industrials Sector Risk; Information Technology Sector Risk; Innovative Technology Risk; Issuer Risk; Large-Capitalization Companies Risk; Management Risk; Market Risk; Market Trading Risk; Micro Capitalization Companies Risk; and Small- and Medium-Capitalization Companies Risk and Technology and Cyber Security Risks.
Biotechnology Company Risk
A biotechnology company's valuation can often be based largely on the potential or actual performance of a limited number of products and can accordingly be greatly affected if one of its products proves unsafe, ineffective, or unprofitable. Biotechnology companies are subject to regulation and the restrictions of the Food and Drug Administration, the Environmental Protection Agency, state, and local governments, and foreign regulatory authorities. Pharmaceutical Company Risk. Companies in the pharmaceutical industry can be significantly affected by government approval of products and services, government regulation and reimbursement rates, product liability claims, patent expirations, and protection and intense competition.
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