Risk Disclosures

VFT Chain LLC Effective Date: October 29, 2025 Version: 1.0 Last Updated: October 29, 2025

CRITICAL WARNING

USING VFTCHAIN PLATFORM AND VFTC TOKENS INVOLVES SIGNIFICANT RISKS THAT COULD RESULT IN COMPLETE LOSS OF YOUR TOKENS, DATA, OR FUNDS. READ THESE RISK DISCLOSURES CAREFULLY BEFORE USING THE PLATFORM. Contact: Thomas@vftchain.com

1. Introduction

1.1 Purpose

This document discloses material risks associated with:

VFTChain decentralized compute platform

VFTC utility tokens

Blockchain technology generally

Cryptocurrency markets

Smart contracts and decentralized applications

1.2 Non-Exhaustive

These disclosures are NOT exhaustive. Other risks may exist that we have not identified or that may arise in the future. Emerging technologies involve unpredictable risks.

1.3 No Risk Elimination

No amount of due diligence, security measures, or controls can eliminate all risks. By using VFTChain, you accept these risks entirely.

2. Technology Risks

2.1 Blockchain Technology Risks

Irreversible Transactions:

All blockchain transactions are permanent and irreversible

Sending tokens to wrong address = permanent loss (no recovery possible)

Errors in smart contract interactions cannot be undone

No customer service can reverse transactions

RISK LEVEL: CRITICAL

Smart Contract Risks:

Smart contracts may contain bugs, errors, or vulnerabilities

Security audits cannot guarantee absence of exploits

Attackers may discover and exploit vulnerabilities

Contract upgrades may introduce new bugs

Economic attacks (flash loans, oracle manipulation, etc.) possible

RISK LEVEL: HIGH

Network Congestion:

Solana network may experience congestion or downtime

High usage periods may delay transactions for hours or days

Transaction fees may spike unexpectedly

Transactions may fail without refund of fees

RISK LEVEL: MEDIUM

Blockchain Forks:

Solana or other blockchains may fork (split into multiple chains)

Hard forks could create token duplicates or incompatibilities

Chain reorganizations could reverse transactions

Platform may need to choose which fork to support

Users could lose tokens on non-supported forks

RISK LEVEL: LOW to MEDIUM

2.2 Platform Technology Risks

Experimental Platform:

VFTChain is experimental and unproven technology

Platform has NOT been fully battle-tested at scale

Unexpected technical issues may arise

Platform could fail to work as intended

RISK LEVEL: HIGH

Software Bugs:

Platform code may contain undiscovered bugs or errors

Bugs could cause data loss, corruption, or platform unavailability

Critical bugs could result in complete platform failure

Bug fixes may take time, causing extended downtime

RISK LEVEL: MEDIUM to HIGH

Data Loss:

Compute job data could be lost due to:

- Node failures or data corruption - Network issues or disconnections - Smart contract errors - Malicious actors - Platform bugs or crashes

NO GUARANTEE of data durability or availability

Users must maintain backups of all critical data

RISK LEVEL: MEDIUM to HIGH

Compute Job Failures:

Submitted compute jobs may:

- Fail to execute correctly - Produce incorrect or corrupted results - Time out or hang indefinitely - Be interrupted mid-execution - Not be verifiable for correctness

Users responsible for verifying compute results

RISK LEVEL: MEDIUM

Platform Discontinuation:

VFT Chain LLC may cease operations or discontinue platform

Platform could shut down temporarily or permanently

No guarantee of continued service or support

Tokens may become worthless if platform shuts down

RISK LEVEL: MEDIUM

2.3 Security Risks

Hacking and Exploits:

Platform may be targeted by hackers or malicious actors

Security breaches could result in:

- Theft of tokens or user funds - Data breaches or privacy violations - Platform downtime or service disruption - Smart contract exploits or drains

Despite security measures, breaches can occur

RISK LEVEL: MEDIUM to HIGH

Private Key Security:

Users are 100% responsible for securing private keys

Private key loss or theft = permanent token loss

No password reset or recovery mechanism exists

Wallet compromises result in irreversible theft

Phishing attacks may target user credentials

RISK LEVEL: CRITICAL

Smart Contract Exploits:

VFTChain smart contracts may be exploited by:

- Reentrancy attacks - Integer overflow/underflow - Oracle manipulation - Flash loan attacks - Economic exploits

Exploits could drain escrow funds or rewards pools

RISK LEVEL: MEDIUM to HIGH

Denial of Service (DoS):

Platform may be subject to DoS or DDoS attacks

Attacks could render platform unavailable for extended periods

Spam attacks could congest network or increase costs

No guarantee of availability or uptime

RISK LEVEL: LOW to MEDIUM

Insider Threats:

Employees or contractors could:

- Sabotage platform or steal data - Exploit privileged access - Introduce backdoors or malicious code

Despite controls, insider threats exist

RISK LEVEL: LOW

2.4 Dependency Risks

Third-Party Infrastructure:

VFTChain relies on external services:

- Solana blockchain network - AWS cloud infrastructure - IPFS/Filecoin storage networks - Blockchain explorers and APIs - Oracle price feeds

Third-party failures could disrupt or disable platform

We have NO control over third-party service quality

RISK LEVEL: MEDIUM

Oracle Risks:

Platform may rely on price oracles for VFTC/USDC pricing

Oracles may provide:

- Inaccurate data - Manipulated prices (oracle attacks) - Stale or delayed data - No data (oracle downtime)

Oracle failures could cause incorrect pricing or payments

RISK LEVEL: MEDIUM

3. Financial and Market Risks

3.1 Token Value Risks

No Guaranteed Value:

VFTC tokens have NO intrinsic or guaranteed value

Token value may decline to zero permanently

No market maker or liquidity provider guarantees

Value determined solely by market supply and demand

RISK LEVEL: CRITICAL

Extreme Volatility:

VFTC token price (if tradable) may be highly volatile

Prices may fluctuate 50%+ in a single day

"Flash crashes" or manipulation possible in illiquid markets

Stop-loss orders may not protect against rapid declines

RISK LEVEL: HIGH

Liquidity Risk:

VFTC tokens may NOT be tradable on any exchange

Secondary markets may have:

- Very low trading volumes - Wide bid-ask spreads (high transaction costs) - Limited buyers (difficult to sell) - No exchange listings

Users may be unable to convert tokens to fiat currency

RISK LEVEL: HIGH

No Exchange Listing Guarantee:

NO PROMISE or EXPECTATION of exchange listings

Exchanges may refuse to list VFTC tokens

Existing listings could be delisted at any time

Listing requirements may become more stringent

RISK LEVEL: HIGH

3.2 Market Manipulation Risks

Pump and Dump Schemes:

VFTC tokens may be targeted by pump-and-dump schemes

Coordinated buying may artificially inflate price

Insiders or whales may dump tokens, crashing price

Social media hype may be fabricated or misleading

RISK LEVEL: MEDIUM to HIGH

Wash Trading:

Fake trading volume may be created to deceive users

Actual liquidity may be far lower than appears

Price discovery may be distorted by fake trades

RISK LEVEL: MEDIUM

Whale Manipulation:

Large token holders ("whales") may:

- Manipulate price through large buy/sell orders - Create artificial scarcity or abundance - Dump tokens, crashing market price

Unequal token distribution increases manipulation risk

RISK LEVEL: MEDIUM

3.3 Cryptocurrency Market Risks

General Crypto Market Declines:

Entire cryptocurrency market may crash

Bitcoin, Ethereum, Solana price drops often affect all cryptos

"Crypto winter" bear markets can last years

VFTC token may decline even if platform is successful

RISK LEVEL: HIGH

Correlation with Other Cryptos:

VFTC price may correlate strongly with Solana (SOL) price

Solana network issues could negatively impact VFTC

General crypto sentiment affects all tokens

RISK LEVEL: MEDIUM to HIGH

Stablecoin Risks:

Platform may use USDC or other stablecoins for pricing

Stablecoins may:

- Lose peg to USD (trade below $1.00) - Be subject to regulatory action or shutdown - Experience redemption halts - Become insolvent (Circle failure, etc.)

Stablecoin failure could disrupt platform operations

RISK LEVEL: LOW to MEDIUM

3.4 Economic Model Risks

Tokenomics Failure:

VFTC token economic model may not work as intended

Supply/demand imbalances could cause hyperinflation or deflation

Mining rewards may be too high (inflation) or too low (no participation)

Token sinks (burning mechanisms) may be insufficient

Economic parameters may require adjustment (causing uncertainty)

RISK LEVEL: MEDIUM

Incentive Misalignment:

Economic incentives may not align participant behavior as intended

Users may act strategically in harmful ways (gaming the system)

Free-rider problems may undermine platform sustainability

RISK LEVEL: MEDIUM

Reward Pool Depletion:

Token reward pools may be depleted faster than anticipated

Reduced rewards could decrease participation

Platform may become economically unviable

RISK LEVEL: MEDIUM

4. Regulatory and Legal Risks

4.1 Regulatory Uncertainty

Evolving Regulations:

Cryptocurrency regulation is highly uncertain and changing rapidly

New laws could:

- Ban or severely restrict VFTC tokens - Require costly compliance measures - Impose user verification requirements - Tax transactions heavily - Restrict platform operations

Regulations vary widely by country

RISK LEVEL: HIGH

Securities Classification Risk:

Despite our analysis, regulators could classify VFTC as a security

Securities classification would require:

- SEC registration (extremely costly and burdensome) - Compliance with securities laws - Potential rescission offers to token holders - Trading restrictions

Platform could be forced to shut down if unable to comply

RISK LEVEL: MEDIUM

Money Transmitter Regulations:

Regulators could determine VFT Chain LLC is a money transmitter

Would require state-by-state licensing (50+ licenses, very expensive)

Non-compliance could result in:

- Cease and desist orders - Civil and criminal penalties - Platform shutdown

RISK LEVEL: LOW to MEDIUM

OFAC Sanctions:

OFAC sanctions violations carry severe penalties

Even accidental violations can result in:

- Up to $20 million+ in fines per violation - Criminal prosecution - Platform shutdown

Sanctions lists change frequently (daily updates required)

Blockchain transparency makes violations detectable

RISK LEVEL: MEDIUM

4.2 Tax Risks

Tax Uncertainty:

Tax treatment of VFTC tokens is uncertain in most jurisdictions

Users may owe taxes on:

- Mining rewards (ordinary income) - Airdrops (prizes/awards income) - Token sales (capital gains) - Token usage (barter transactions) - Staking rewards (ordinary income)

Tax rates and rules vary widely by country

RISK LEVEL: HIGH

Tax Reporting:

Users responsible for tracking and reporting all token transactions

Blockchain analysis tools may provide transaction data to tax authorities

Failure to report crypto income can result in:

- Audits and tax assessments - Penalties and interest - Criminal prosecution (tax evasion)

RISK LEVEL: MEDIUM

Unfavorable Tax Treatment:

Future tax laws may treat crypto very unfavorably:

- High capital gains rates - Ordinary income treatment (not capital gains) - Transaction taxes - Wealth taxes on holdings

Retroactive tax law changes possible (in some jurisdictions)

RISK LEVEL: MEDIUM

4.3 Legal and Litigation Risks

Lawsuits:

VFT Chain LLC or platform may face:

- Class action lawsuits by users - Securities fraud claims - Consumer protection actions - Intellectual property infringement claims - Regulatory enforcement actions

Litigation is costly and could bankrupt company

RISK LEVEL: MEDIUM

Intellectual Property:

Platform may infringe third-party patents or copyrights

Patent trolls may target blockchain/crypto companies

Infringement could result in:

- Injunctions halting platform operations - Costly licensing fees or damages - Platform shutdowns or feature removal

RISK LEVEL: LOW to MEDIUM

Regulatory Enforcement:

SEC, CFTC, FinCEN, FTC, or state regulators may:

- Investigate platform operations - Issue subpoenas or document requests - Bring enforcement actions - Impose fines or sanctions - Require operational changes or shutdowns

Even if compliant, investigations are costly and disruptive

RISK LEVEL: MEDIUM

4.4 Jurisdiction-Specific Risks

Country Bans:

Some countries have banned or may ban:

- All cryptocurrency activities - Crypto exchanges or trading - Mining operations - Specific uses of blockchain technology

Users in banned countries may face:

- Criminal prosecution - Asset confiscation - Account termination

List of banned countries may expand

RISK LEVEL: MEDIUM to HIGH (varies by jurisdiction)

Cross-Border Transactions:

International token transfers may violate:

- Currency control laws - Anti-money laundering regulations - Sanctions or embargo laws - Tax evasion laws

Users responsible for understanding laws in all relevant jurisdictions

RISK LEVEL: MEDIUM

5. Operational Risks

5.1 Platform Operational Risks

Downtime:

Platform may experience unplanned downtime due to:

- Technical failures or bugs - Security incidents or attacks - Maintenance or upgrades - Third-party infrastructure failures - Overwhelming usage (scaling issues)

No SLA (Service Level Agreement) or uptime guarantee

RISK LEVEL: MEDIUM

Scaling Limitations:

Platform may NOT scale to meet demand

High usage could result in:

- Slow performance or timeouts - Transaction failures - High fees or costs - Need to limit new users

Scaling blockchain applications is extremely difficult

RISK LEVEL: MEDIUM to HIGH

Governance Failures:

Decentralized governance may result in:

- Gridlock (inability to make decisions) - Plutocracy (wealthy token holders control decisions) - Voter apathy (low participation) - Contentious hard forks (community splits)

Governance attacks possible (buying votes, bribery, Sybil attacks)

RISK LEVEL: MEDIUM

5.2 Business Risks

Company Failure:

VFT Chain LLC may:

- Run out of funding - Be acquired or merged - File for bankruptcy - Be dissolved or wound down

Platform could be abandoned or shut down

No guarantee of continued operations

RISK LEVEL: MEDIUM

Key Person Risk:

Platform may depend heavily on specific individuals

Loss of key employees could severely impact operations

Founders or executives may leave or be incapacitated

RISK LEVEL: MEDIUM

Competition:

Competing decentralized compute platforms may:

- Offer superior technology or features - Attract more users and reduce VFTChain adoption - Drive down prices or margins - Make VFTChain obsolete

Established cloud providers (AWS, Google, Azure) dominate market

RISK LEVEL: HIGH

Adoption Risk:

Platform may fail to achieve meaningful adoption

Without sufficient users:

- Network effects don't materialize - Platform economically unviable - Tokens become worthless

Chicken-and-egg problem (users need providers, providers need users)

RISK LEVEL: HIGH

5.3 Third-Party Risks

Counterparty Risk:

Compute providers may:

- Fail to complete jobs or deliver results - Provide low-quality or incorrect results - Act maliciously (data theft, sabotage) - Disappear after receiving payment

Escrow mechanisms may not fully protect users

Dispute resolution is binding arbitration (not courts)

RISK LEVEL: MEDIUM

Integration Risks:

Third-party integrations (wallets, dApps, etc.) may:

- Contain security vulnerabilities - Expose user data or private keys - Malfunction or lose user funds - Be phishing attempts or scams

We do NOT control or endorse third-party tools

RISK LEVEL: MEDIUM

6. User-Specific Risks

6.1 User Error Risks

Irreversible Mistakes:

User errors are permanent and irreversible:

- Sending tokens to wrong address - Approving malicious smart contracts - Setting incorrect transaction parameters - Losing or exposing private keys

NO customer support can fix blockchain errors

RISK LEVEL: CRITICAL

Phishing and Social Engineering:

Users may be targeted by:

- Phishing emails or fake websites - Social engineering attacks (impersonation) - Fake customer support scams - Malicious browser extensions - Clipboard hijacking malware

VFT Chain LLC will NEVER ask for private keys or seed phrases

RISK LEVEL: HIGH

Insufficient Technical Knowledge:

Blockchain technology is complex

Users without technical understanding may:

- Make costly mistakes - Fall victim to scams - Misunderstand risks or terms - Lose funds due to confusion

No "undo" button for blockchain transactions

RISK LEVEL: MEDIUM to HIGH

6.2 Access and Control Risks

Private Key Loss:

Losing private keys = permanent, irreversible token loss

Common causes:

- Forgotten passwords - Lost or damaged hardware wallets - Hard drive failures without backup - Death without estate planning

VFT Chain LLC CANNOT recover lost private keys

RISK LEVEL: CRITICAL

Wallet Vulnerabilities:

Wallet software may:

- Contain security bugs - Be compromised or hacked - Generate weak private keys - Transmit keys over insecure connections

Hardware wallets may fail or be tampered with

RISK LEVEL: MEDIUM to HIGH

Custodial Risk (Third Parties):

Users storing tokens on exchanges or custodial wallets face:

- Exchange hacks or insolvency ("not your keys, not your coins") - Account freezes or seizures - Withdrawal limits or delays - Exit scams or fraud

We recommend non-custodial storage (but that has own risks)

RISK LEVEL: HIGH (for custodial storage)

6.3 Economic Risks to Users

Sunk Costs:

Users may invest time and money in:

- Purchasing hardware for compute provision - Learning platform and blockchain technology - Accumulating VFTC tokens - Building reputation or stake

Platform failure could render all investments worthless

RISK LEVEL: MEDIUM to HIGH

Opportunity Cost:

Time and resources spent on VFTChain could be used elsewhere

Alternative investments may be more profitable

Traditional cloud computing may be cheaper or more reliable

RISK LEVEL: MEDIUM

Income Loss:

Compute providers depending on VFTChain income may face:

- Income volatility or cessation - Inability to pay for hardware or electricity - Tax obligations on token rewards (even if illiquid)

Platform is NOT a reliable or stable income source

RISK LEVEL: MEDIUM to HIGH (if depending on platform for income)

7. Blockchain-Specific Risks

7.1 Solana Blockchain Risks

Network Downtime:

Solana has experienced multiple network outages (2021-2024)

Outages lasted from hours to days

During downtime:

- Transactions cannot be processed - Platform becomes unusable - Tokens cannot be transferred

Future outages are possible

RISK LEVEL: MEDIUM

Consensus Failures:

Solana uses Proof of Stake (PoS) consensus

Consensus failures could result in:

- Chain halts - Forks (multiple competing chains) - Transaction reversals - Validator misbehavior

RISK LEVEL: LOW to MEDIUM

Validator Centralization:

Solana validators may become centralized

Centralization increases risks of:

- Collusion or censorship - Regulatory pressure on validators - Single point of failure

Decentralization is critical to blockchain security

RISK LEVEL: MEDIUM

7.2 Smart Contract Platform Risks

Solana Runtime Bugs:

Solana runtime (Sealevel) may contain bugs

Bugs could affect smart contract execution

Platform security depends on Solana security

RISK LEVEL: MEDIUM

Program Upgrades:

VFTChain smart contracts may be upgraded

Upgrades could:

- Introduce new bugs - Change functionality unexpectedly - Be malicious (if upgrade keys compromised)

Program upgrade authority is a centralization risk

RISK LEVEL: MEDIUM

Composability Risks:

VFTChain interacts with other Solana programs

Vulnerabilities in external programs could affect VFTChain

"DeFi domino effect" where one failure cascades

RISK LEVEL: MEDIUM

7.3 Cryptographic Risks

Cryptography Obsolescence:

Quantum computers may break current cryptography (SHA-256, ECDSA)

Timeline uncertain but possible within 10-20 years

Blockchain transitions to quantum-resistant crypto will be difficult

Users could lose tokens if transition poorly executed

RISK LEVEL: LOW (short-term), MEDIUM (long-term)

Key Management:

Most blockchain hacks stem from poor key management

Private key security is user responsibility

Single compromised key = total loss of funds

RISK LEVEL: CRITICAL

8. Force Majeure and External Risks

8.1 Natural Disasters and Catastrophes

Infrastructure Failures:

Natural disasters may affect:

- Cloud infrastructure (AWS data centers) - Internet backbone and connectivity - Power grids supporting validators - Developer team availability

Platform may become unavailable for extended periods

RISK LEVEL: LOW to MEDIUM

Pandemic or Health Emergencies:

Global health crises may disrupt:

- Developer team productivity - Third-party vendor operations - User access to technology - Economic conditions generally

RISK LEVEL: LOW

8.2 Geopolitical Risks

War or Conflict:

Armed conflicts may affect:

- Internet infrastructure - Cryptocurrency markets - Regulatory environment - Developer or user safety

Platform operations in conflict zones may be impossible

RISK LEVEL: LOW to MEDIUM

Government Seizure:

Governments may:

- Seize platform assets or infrastructure - Nationalize cryptocurrency holdings - Ban platform operations - Arrest or detain team members

Authoritarian regimes pose higher risks

RISK LEVEL: LOW to MEDIUM (varies by jurisdiction)

Economic Collapse:

Severe economic crises may cause:

- Hyperinflation or currency devaluation - Bank failures or freezes - Capital controls or restrictions - Increased cryptocurrency demand (and regulation)

Cryptocurrency may be affected by broader economic turmoil

RISK LEVEL: LOW to MEDIUM

8.3 Technological Disruption

Superior Technology:

New blockchain technology may render current systems obsolete:

- Faster, cheaper, more scalable blockchains - New consensus mechanisms - Breakthrough innovations

VFTChain may become technologically obsolete

RISK LEVEL: MEDIUM

AI and Automation:

Artificial intelligence advances may:

- Eliminate need for decentralized compute markets - Change compute job economics dramatically - Introduce new security risks

Rapidly evolving technology landscape creates uncertainty

RISK LEVEL: MEDIUM

9. Specific Risk Scenarios

9.1 Worst-Case Scenarios

Total Loss Scenario: You could lose 100% of your tokens if:

Platform experiences critical security breach

Smart contracts are exploited or drained

VFT Chain LLC goes bankrupt and shuts down platform

VFTC tokens are classified as securities (regulatory shutdown)

Solana blockchain fails or is abandoned

You lose your private keys

Liability Scenario: You could face legal liability if:

Your compute jobs violate laws (copyright infringement, illegal content, etc.)

Tax authorities audit you for unreported crypto income

You violate sanctions by transacting with prohibited persons

You use stolen funds or participate in money laundering

Data Loss Scenario: You could lose critical data if:

Compute providers fail or delete data

Platform suffers data breach or corruption

Blockchain storage systems (IPFS/Filecoin) fail

Smart contracts malfunction

9.2 Probable Risk Scenarios

Likely Outcomes:

VFTC token remains illiquid with no exchange listings (60% probability)

Token value declines from initial distribution (50% probability)

Platform experiences periodic downtime or bugs (70% probability)

Regulatory uncertainty persists for years (80% probability)

Competition from larger cloud providers limits adoption (70% probability)

User Impact:

Most users will NOT profit from token holdings

Compute jobs may cost more than traditional cloud in early days

Early adopters face highest risks (experimental technology)

Platform utility is primary value (not speculation)

10. Risk Mitigation Recommendations

10.1 User Best Practices

Protect Private Keys:

Use hardware wallets for significant token holdings

Store seed phrases securely offline (fireproof safe, bank deposit box)

Never share private keys with anyone

Use multi-signature wallets for large amounts

Estate planning: ensure heirs can access keys

Diversify Holdings:

Do NOT concentrate all crypto in VFTC tokens

Diversify across multiple cryptocurrencies

Maintain traditional investments (stocks, bonds, real estate)

Never invest more than you can afford to lose completely

Verify Everything:

Double-check recipient addresses before sending tokens

Verify smart contract addresses (use official sources only)

Test transactions with small amounts first

Be skeptical of too-good-to-be-true offers

Stay Informed:

Monitor platform announcements and updates

Follow regulatory developments in your jurisdiction

Subscribe to security advisories

Understand how platform features work before using them

Limit Risk Exposure:

Start with small amounts to learn platform

Gradually increase usage as confidence builds

Withdraw earnings regularly (don't leave large balances)

Use stop-loss orders if trading tokens (though may not execute)

10.2 What VFT Chain LLC Does

Security Measures:

Professional security audits of smart contracts

Bug bounty program incentivizing vulnerability disclosure

Incident response plan for breaches or exploits

Multi-signature controls on critical functions

Regular penetration testing

Monitoring and Compliance:

OFAC sanctions screening (automated, daily updates)

Transaction monitoring for suspicious activity

Compliance with applicable laws and regulations

Cooperation with law enforcement

Communication:

Transparent disclosure of risks and issues

Timely notification of security incidents

Regular platform updates and improvements

Community engagement and support

Technical Measures:

Redundant infrastructure for reliability

Automated backups and disaster recovery plans

Rate limiting and anti-abuse controls

Continuous monitoring and alerting

10.3 What We CANNOT Do

Limitations:

CANNOT reverse blockchain transactions (technically impossible)

CANNOT recover lost private keys (no backdoor or reset)

CANNOT guarantee token value (market determines price)

CANNOT prevent all hacks or exploits (zero-day vulnerabilities exist)

CANNOT ensure regulatory approval (regulators are unpredictable)

CANNOT protect against user error (blockchain is unforgiving)

CANNOT guarantee platform survival (business risk is real)

11. Acknowledgment of Risks

By using VFTChain platform or acquiring VFTC tokens, you acknowledge that you:

Have read and understood all risk disclosures in this document

Accept all risks outlined herein and any other risks

Understand risks are substantial and could result in total loss

Are using tokens for utility purposes (not as investments)

Have consulted advisors (or knowingly waived right to do so)

Can afford to lose your entire token holdings or investment

Will not hold VFT Chain LLC liable for losses resulting from these risks

Understand no guarantees exist regarding platform or token value

Accept binding arbitration for dispute resolution (no courts or class actions)

Have legal capacity to accept these risks and terms

IF YOU CANNOT ACCEPT THESE RISKS, DO NOT USE VFTCHAIN OR VFTC TOKENS.

12. Updates and Changes

12.1 Risk Disclosures May Change

New risks may emerge as technology and regulations evolve

We will update risk disclosures as material changes occur

Check "Last Updated" date regularly

Continued use after updates constitutes acceptance

12.2 User Responsibility

Users are responsible for staying informed of risks

Check platform announcements and legal documents regularly

Monitor regulatory developments in your jurisdiction

Seek professional advice when uncertain

13. Contact Information

For questions about these risk disclosures: VFT Chain LLC c/o Corporation Service Company 251 Little Falls Drive Wilmington, DE 19808 United States Email: Thomas@vftchain.com Subject: "Risk Disclosure Inquiry"

14. Final Warning

DO NOT USE VFTCHAIN IF:

You cannot afford to lose your entire investment

You do not understand blockchain technology

You are seeking guaranteed returns or investment profits

You are uncomfortable with high-risk, experimental technology

You expect customer support to reverse mistakes

You are in a prohibited jurisdiction

ONLY USE VFTCHAIN IF:

You fully understand and accept ALL risks disclosed herein

You are using VFTC tokens for utility purposes (compute services)

You can afford complete loss of your tokens

You have secured your private keys properly

You have consulted qualified advisors

You accept personal responsibility for all outcomes

VFTCHAIN AND VFTC TOKENS ARE HIGHLY EXPERIMENTAL AND RISKY. YOU HAVE BEEN WARNED.

Last Updated: October 29, 2025 Version: 1.0 Document ID: VFTC-RISK-DISCLOSURES-2025-v1.0