RISK

1. PURPOSE

This Risk Disclosure Statement is provided to help you understand the principal risks associated with acquiring, holding, transferring, and using the $MGENZ token and participating in the Services. It is not exhaustive. Other risks may exist that are not described here, and risks may evolve over time.

You should read this document carefully alongside our Terms and Conditions, Disclaimer, and the project whitepaper before deciding whether to participate.

2. SUITABILITY ASSESSMENT

Participation in token sales and the holding of cryptocurrencies is not appropriate for every individual. Before participating, you should consider whether:

• You have sufficient financial resources to absorb a complete loss of the amount committed without affecting your standard of living;
• Your participation is consistent with your overall financial situation, investment objectives, and risk tolerance;
• You have the technical knowledge required to operate a self-custodied wallet and to interact with smart contracts safely;
• Your participation is permitted under the laws of your jurisdiction;
• You are not relying on borrowed funds.

3. MARKET RISK

Cryptocurrency markets are highly volatile. The market price of $MGENZ may fluctuate significantly over short periods. Factors that may affect the price include but are not limited to:

• Macroeconomic conditions, interest rates, and investor sentiment;
• Movements in the price of major cryptocurrencies such as Bitcoin and Ether;
• The actions and announcements of large holders ("whales");
• Changes in trading volume and liquidity;
• Listings, delistings, or changes in trading status on exchanges;
• News, social media activity, and community sentiment.

4. LIQUIDITY RISK

Following the public listing of $MGENZ, the depth and continuity of the secondary market depend on third-party traders and market makers. There is no guarantee that:

• You will be able to sell your $MGENZ at any particular price or at all;
• Bid ask spreads will remain within typical ranges;
• Slippage on larger orders will be limited;
• Liquidity provided by initial DEX pairs will be sufficient for your trading needs.

The locking of liquidity reduces the risk of certain forms of project termination but does not guarantee a functioning secondary market.

5. SMART CONTRACT RISK

$MGENZ relies on smart contracts deployed to the Base network (Ethereum layer 2). Smart contracts are immutable software programs and may contain:

• Bugs or logic errors not detected during development or audit;
• Vulnerabilities exploitable by malicious actors;
• Incompatibilities with future Ethereum protocol upgrades;
• Edge cases producing unexpected behavior under specific conditions.

Independent audits reduce but do not eliminate these risks. Audit findings represent the auditors' assessment as of the date of review and do not constitute a guarantee.

6. CUSTODY RISK

You are solely responsible for the safekeeping of your wallet credentials. Risks include:

• Loss of seed phrase or private key, resulting in permanent loss of access;
• Phishing attacks, malicious software, or social engineering compromising your wallet;
• Errors in transaction parameters (incorrect destination address, incorrect amount, incorrect chain);
• Loss or damage of devices on which wallet credentials are stored.

Moongenz cannot recover lost wallets, reverse incorrect transactions, or restore access on your behalf.

7. REGULATORY RISK

The legal and regulatory framework applicable to digital assets is evolving rapidly and varies significantly across jurisdictions. Future regulatory developments may:

• Restrict or prohibit your ability to acquire, hold, or transfer $MGENZ;
• Result in the classification of $MGENZ as a regulated financial instrument;
• Impose registration, licensing, or disclosure obligations on Moongenz that are commercially impracticable;
• Lead to delisting from exchanges in your jurisdiction;
• Impose tax obligations on transactions, holdings, or rewards;
• Impose AML, sanctions, or KYC requirements that affect your participation.

You are responsible for understanding and complying with the laws of your jurisdiction, including all applicable tax obligations.

8. OPERATIONAL RISK

The development and operation of the project depend on the continued effort of the team and on third parties. Operational risks include:

• Departure of key team members;
• Funding shortfalls preventing roadmap execution;
• Compromise of social media or community channels;
• Failure to deliver advertised features or partnerships;
• Disruption to the Site or supporting infrastructure;
• Reputational damage from external factors.

9. COUNTERPARTY RISK

The Services depend on third parties whose actions are outside our control. Counterparty risks include:

• Insolvency or service disruption affecting the payment processor (NOWPayments), exchanges, or wallet providers;
• Changes to terms of service that affect our ability to provide a feature;
• Errors or breaches by service providers affecting your data or transactions;
• Disputes or chargebacks initiated through card networks.

10. TOKENOMICS AND DILUTION RISK

The total supply of $MGENZ is fixed, but the circulating supply changes over time as a result of vesting schedules, staking rewards, airdrops, and burns. Increases in circulating supply may exert downward pressure on price. Reward emission rates and APY figures are subject to adjustment.

11. BLOCKCHAIN AND PROTOCOL RISK

The Ethereum and Solana blockchains and other supporting infrastructure are subject to risks including:

• Network congestion leading to elevated gas fees and failed transactions;
• Hard or soft forks affecting Token availability or behavior;
• 51% attacks (low likelihood on major networks, higher on smaller chains);
• Validator outages or consensus failures;
• Long-term cryptographic developments, including potential threats from advances in quantum computing.

12. CYBERSECURITY RISK

The Site, supporting infrastructure, and connected services may be targeted by cyberattacks. Risks include:

• Phishing sites mimicking the official Moongenz site;
• DNS or domain hijacking attempts;
• Compromise of administrator accounts;
• Data breaches affecting personal information;
• Targeted social engineering against community members.

You should always verify the URL, bookmark official channels, and treat unsolicited messages with caution.

13. SOCIAL AND REPUTATIONAL RISK

The performance of community-driven tokens is heavily influenced by sentiment. Negative news, viral campaigns, or shifts in public perception can have rapid and significant effects on price and participation, even where the project itself is unaffected.

14. NO PROTECTION SCHEMES

Unlike regulated financial products, $MGENZ is not covered by:

• Deposit insurance schemes;
• Investor compensation funds;
• Statutory ombudsman services;
• Default guarantees of any government or central authority.

Where you suffer a loss, your options for recourse may be limited.

15. SCAMS AND IMPERSONATION

The cryptocurrency space attracts a high volume of fraudulent activity. Common scams include:

• Phishing websites mimicking moongenz.io;
• Fake "support" or "team" accounts on Telegram, Discord, X (Twitter), or by email;
• Unsolicited "airdrop claim" links;
• Imitation tokens deployed to wallets to lure users into approval transactions;
• Fraudulent giveaway promotions;
• Fake KYC or "verification" requests.

The Moongenz team will never initiate a direct message to you, never request your seed phrase or private keys, and never request transfers to "verification" addresses. All official communications come from channels listed on the Site footer.

16. TAX RISK

Acquiring, holding, exchanging, or earning rewards on $MGENZ may give rise to tax obligations under the laws of your jurisdiction. Tax treatment depends on your individual circumstances and may change. You are solely responsible for determining and meeting your tax obligations and for keeping accurate records of your transactions.

17. NO RELIANCE

You confirm that you are not relying on any communication, statement, marketing material, or representation made by Moongenz, its team members, or any community member as a basis for your decision to participate. Your decision is made independently and on the basis of your own assessment of the risks set out above and any other risks you identify.

18. ONGOING REVIEW

Risks may evolve. You should periodically review this Risk Disclosure and the other legal documents on the Site, particularly before increasing your participation.

19. CONTACT

Questions about this Risk Disclosure may be sent to legal@moongenz.io.