THIS DOCUMENT AND ANY OTHER DOCUMENTS PUBLISHED IN ASSOCIATION WITH THESE TERMS (SUCH AS THE WHITE PAPER) RELATE TO A HI-TEK TRAVELPAYTM CRYPTO-CURRENCY (HIC) OFFERING, TO PERSONS (PURCHASERS) IN RESPECT OF THE INTENDED DEVELOPMENT AND USE OF THE NETWORK BY VARIOUS PARTICIPANTS. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES OR A PROMOTION, INVITATION OR SOLICITATION FOR INVESTMENT PURPOSES. THE TERMS OF THE PURCHASE ARE NOT INTENDED TO BE A FINANCIAL SERVICES OFFERING DOCUMENT OR A PROSPECTUS. THE HIC OFFERING INVOLVES AND RELATES TO THE DEVELOPMENT AND USE OF EXPERIMENTAL SOFTWARE AND TECHNOLOGIES THAT MAY NOT COME TO FRUITION OR ACHIEVE THE OBJECTIVES SPECIFIED IN THE WHITE PAPER. THE PURCHASE OF HIC REPRESENTS A HIGH RISK TO ANY PURCHASERS, WHO HAVE NO RIGHT TO A REFUND UNDER ANY CIRCUMSTANCES ONCE THE TRANSACTION IS MADE. THE HIC DOES NOT REPRESENT EQUITY, SHARES, UNITS, ROYALTIES OR RIGHTS TO CAPITAL, PROFIT OR INCOME OR ANY FORM OF OWNERSHIP INTEREST OR LIEN OR SECURITY INTEREST IN THE NETWORK OR SOFTWARE OR IN THE ENTITY THAT ISSUES HIC OR ANY OTHER COMPANY OR INTELLECTUAL PROPERTY ASSOCIATED WITH THE NETWORK OR ANY OTHER PUBLIC OR PRIVATE ENTERPRISE, CORPORATION, FOUNDATION OR OTHER ENTITY IN ANY JURISDICTION. HI-TEKCOINS ARE NOT THEREFORE INTENDED TO REPRESENT A SECURITY OR SIMILAR LEGAL INTEREST AND DO NOT REPRESENT ANY FORM OF DEBT, DEBENTURE, NOTE, OR INSTRUMENT REQUIRING REPAYMENT, NOR IS ANY INTEREST PAYABLE AFTER PURCHASE OF HIC.
CERTAIN MATERIAL RISK FACTORS
Purchasers should be aware of the many risks associated with the purchase, use and sale of HI-TEKCoin Travel Cryptocurrency (HIC). HI-TEK.SG Pte Ltd ("Company") has outlined some material risks that are presently known to Company; however, additional risks not specifically known may arise in the future.
Cryptocurrency. Company may elect to store or convert cryptocurrency purchases into one or more fiats and/or alternative cryptocurrencies. There could be significant difficulties in making and managing such cryptocurrencies and other funds due to the lack of ready convertibility between fiat currencies, cryptocurrencies and HIC, and the difficulty in utilizing such assets via traditional market counterparties and intermediaries. In addition to the usual market forces, there are several potential events which could exacerbate the risk of unfavorable fluctuation in the value of cryptocurrencies, including but not limited to another DAO-like attack on the Ethereum network; or significant security incidents or market irregularities at one or more of the major cryptocurrency exchanges.
Main Protocol. Many of the Network project technologies including the HIC will, at least initially, be based on the X13 Algorithm. The algorithm uses 13 rounds of hashing with 13 different hash-functions (blake, bmw, groestl, jh, keccak, skein, luffa, cubehash, etc.), which makes it one of most reliable in a modern cryptocurrencies world.
Cybercrime. The acquisition and management of cryptocurrencies and HIC is inherently subject to the risk of cybercrime that is difficult to manage and mitigate. This may consist of concerted attempts and even successful attempts to hack the Network, HIC Sale and the Sites and software used to manage purchases received in respect of HIC and other software or technology components and to defraud Purchasers and Company. The Company may be targeted by unauthorized access, blockchain mining attacks, hacking and/or theft of cryptocurrency and HIC assets, and it may not be possible to adequately insure against potential losses resulting from these incidents at a reasonable price, or at all. Company currently does not plan to insure the same. Any successful attacks present a risk to the Network, expected proper execution and sequencing of HIC transactions, and expected proper execution and sequencing of software computations, and any unauthorized access or cybercrime may result in the loss of or inability to access HIC purchases, and impair the ability to issue HIC.
Regulatory risk: Purchaser understands and accepts that HIC and blockchain technology allows new forms of interaction, and it is likely that certain jurisdictions will apply existing regulations on orimpose new regulations on blockchain technology-based applications, which may be contrary to the current purchase process and which may necessitate substantial modifications to the Network, including the potential loss of HIC for Purchaser. Further, Purchaser accepts the risks and potential impact of US regulations on HIC transactions involving sales to or from its residents or citizens of the United States or transactions deemed to have occurred in the United States. Company or any Group Company may be forced to cease operations due to regulatory actions, changes to existing laws and regulations which make it commercially undesirable or illegal to operate in such jurisdictions, or to obtain the necessary regulatory approval(s) to operate.
Loss or destruction of the private key: HIC (as all other cryptocurrencies) are stored in a digital wallet and can be controlled and accessed only by the possessor of both the public key and the private key for the digital wallet in which the HIC are stored, , both of which are unique. If the private key is lost, destroyed or otherwise compromised, a buyer may be unable to access the HIC held in the related digital wallet, and will essentially be lost. If the private key is in some manner acquired by a third party, that third party may be able to gain access to the related digital wallet and any stored HIC.
Risks associated with peer-to-peer transactions: Digital currencies can be traded on numerous online platforms, through third party service providers and as peer-to-peer transactions between parties. Many marketplaces simply bring together counterparties without providing any clearing or intermediary services and without oversight or regulation. In such cases, all risks (such as double-selling) remain solely with the parties directly involved in the transaction.
Other risks related to trading platforms and exchanges: Digital currency trading platforms, largely unregulated and providing limited transparency with respect to their operations, have come under increasing scrutiny due to cases of fraud, business failure or security breaches, in which Buyers were not or could not be compensated for their losses. Although one does not need a trading platform or an exchange to trade HIC or other cryptocurrencies, such platforms are often used to convert fiat currency into cryptocurrency, or to trade one cryptocurrency for another.
Loss of confidence in digital currencies: Digital currencies are part of a new and rapidly evolving “digital assets industry”, which itself is subject to a high degree of uncertainty. For a relatively small use of digital currencies in the retail and commercial marketplace, online platforms have generated a large trading activity by speculators seeking to profit from the short-term or long-term holding of digital currencies. Most cryptocurrencies are not backed by a central bank, a national or international organization, assets or other credit, and their value is strictly determined by the value that market participants place on them through their transactions, which means that loss of confidence may bring about a collapse of trading activities and an abrupt drop in value. As a result, the market has been volatile, with extreme and sometimes sudden fluctuations in value.
Regulations preventing or restricting trading of digital currencies: There are significant inconsistencies among various regulators with respect to the legal status of digital currencies. Regulators are also concerned that HIC and other cryptocurrencies may be used by criminals and terrorist organizations. In the future, certain countries may restrict the right to acquire, own, hold, sell or use digital currencies.
Currency-conversion risks: Policies or interruptions in the deposit or withdrawal of fiat currency in or out of the trading platforms may impact the ability of certain Buyers to convert. For example, when two of the largest trading platforms in China stopped margin lending and withdrawals in February 2017 and started implementing stricter anti-money laundering policies following discussions with Chinese authorities, this immediately triggered a decrease in pricing and trading volume.
Taxation of digital currencies: For Buyers in cryptocurrencies, there is substantial uncertainty with respect to the tax treatment of an investment in digital currencies. HIC and other cryptocurrencies may be considered assets in certain jurisdictions and currency in others. Sales or value-added taxes may be imposed on purchases and sales of digital currencies. The Buyers, based on their home jurisdiction, should obtain professional tax advice on a regular basis to minimize the impact of taxes on their digital currencies.
Risk of uninsured losses: HIC does not constitute a deposit for the purpose of being insured by any governmental or other insurance. The HIC is uninsured unless Purchaser specifically obtains for his own benefit and at his sole expense, private insurance covering the various risks, if available. Absent obtaining private insurance, Purchase will have no recourse in the event of loss.
Acceptance not Guaranteed. Company cannot require or legally compel any person or entity to accept HIC. Company is not responsible or liable for any adverse consequences arising out of or related to any such rejection.
No Refunds. Purchaser has no right to any refund for the purchase of HIC and understands that no market liquidity is guaranteed and that the value of HIC over time may experience extreme volatility or depreciate entirely.