Key Risks

Eclipse Fi is currently in its initial development stages, and it carries inherent risks that participants must acknowledge and accept. You acknowledge and agree that there are numerous risks associated with acquiring, holding, and using $ECLIP in the Eclipse Fi ecosystem. In the worst scenario, this could lead to the loss of ALL or PART of $ECLIP held.
The Key Risks can be summarized as follows:
  1. 1.
    Uncertain Regulations and Enforcement Actions
  2. 2.
    Inadequate Disclosure of Information
  3. 3.
  4. 4.
    Failure to Develop
  5. 5.
    Security Weaknesses
  6. 6.
    Risk of Dissolution
  7. 7.
    Other Risks

1. Uncertain Regulations and Enforcement Actions:

The regulatory status of Eclipse Fi, $ECLIP and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of digital assets has become a primary target of regulation in all major countries in the world. 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 $ECLIP and/or Eclipse Fi. Regulatory actions could negatively impact $ECLIP and/or Eclipse Fi in various ways. The Company, 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 to mitigate the legal risks as much as possible, the Company and Distributor have worked with the specialist blockchain department at Jacque Law LLC and obtained a legal opinion on the token distribution, and will be conducting business in accordance with the prevailing market practice.

2. Inadequate Disclosure of Information:

Eclipse Fi remains in active development, and various aspects such as design concepts, consensus mechanisms, algorithms, codes, and technical details are subject to ongoing updates and changes. While this material provides the most current available information about Eclipse Fi, it may not be exhaustive, and the Eclipse Fi team reserves the right to make adjustments and updates as needed. It's important to note that the team may not always provide comprehensive details, including development progress and expected milestones, to $ECLIP holders, resulting in inevitable and reasonable limitations in information disclosure.

3. Competition:

Various types of decentralised applications, games 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 $ECLIP and/or Eclipse Fi and attempt to re-create similar facilities. Eclipse Fi may be required to compete with these alternative networks, which could negatively impact $ECLIP and/or Eclipse Fi.

4. Failure to develop:

There is the risk that the development of Eclipse Fi 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 $ECLIP, unforeseen technical difficulties, and shortage of development funds for activities.

5. Security Weaknesses:

Hackers or other malicious groups or organisations may attempt to interfere with $ECLIP and/or Eclipse Fi in a variety of 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 Company, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of $ECLIP and/or Eclipse Fi, which could negatively affect $ECLIP and/or Eclipse Fi. 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 $ECLIP and/or Eclipse Fi by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.

6. Risk of Dissolution:

Start-up companies such as the Company, the Distributor or their affiliates involve a high degree of risk. Financial and operating risks confronting start-up companies are significant, and the aforementioned entities are not immune to these. Start-up companies often experience unexpected problems in the areas of product development, marketing, financing, and general management, among others, which frequently cannot be solved. It is possible that, due to any number of reasons, including, but not limited to, an unfavourable fluctuation in the value of cryptographic and fiat currencies, decrease in the utility of $ECLIP due to negative adoption of Eclipse Fi, the failure of commercial relationships, or intellectual property ownership related challenges, Eclipse Fi may no longer be viable to operate and the Company, the Distributor or their affiliates may be dissolved.

7. Other Risks:

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 participation in Eclipse Fi, as well as acquisition of, holding and use of $ECLIP, including those that the Company 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 Company, the Distributor, their respective affiliates, and the Eclipse Fi team, as well as understand the overall framework, mission and vision for Eclipse Fi prior to participating in the same and/or acquiring $ECLIP.