Token Purchase Risk Policy (SRB)

General and Fundamental Warning

The purchase, holding, exchange, and use of utility tokens such as SRB involve significant financial, technological, and regulatory risks. These risks can lead to the partial or total loss of the invested capital.

Before proceeding with any operation related to SRB tokens, it is imperative that you:

• Fully understand the nature of digital assets and blockchain technology.
• Carefully evaluate your personal financial situation, risk tolerance, and investment objectives.
• Invest only funds that you can afford to lose without compromising your financial stability.
• Conduct your own independent research ("Do Your Own Research" - DYOR) on the SynergyRecycle.B project, the team, the technology, and the target market.
• Consult independent and qualified financial, legal, and tax advisors to obtain personalized opinions based on your specific jurisdiction and situation.

SynergyRecycle.B does not provide financial or investment advice. The information contained in this document and other project materials is provided for informational purposes only and does not constitute an offer or solicitation to invest.

This document describes the main identified risks, but it is not exhaustive. Additional risks not currently foreseen may arise.

1. Nature and Classification of SRB Tokens

1.1 Token Type

SRB tokens are classified as utility tokens. Their primary purpose is to provide access to specific features or benefits within the SynergyRecycle.B ecosystem (e.g., obtaining discounts, supporting projects, accessing future services).

It is essential to understand that SRB tokens:

• Do not represent ownership shares, equity, or participations in the SynergyRecycle.B project or any associated legal entity.
• Do not confer rights to receive dividends, interest, profits, or any other form of financial return deriving from the project's activities.
• Are not financial instruments under MiFID II regulations or equivalents in other jurisdictions (unless otherwise classified in the future by authorities).
• Their value is intrinsically linked to the utility and adoption of the SynergyRecycle.B platform and is not directly correlated to the financial performance of the entity developing the project.

1.2 Possible Regulatory Reclassifications

The regulatory framework for digital assets is constantly evolving globally (e.g., MiCA in Europe). There is a risk that regulatory authorities may, in the future, classify utility tokens like SRB differently (for example, as financial instruments or e-money), imposing additional regulatory requirements or restrictions that could affect the project's operations or the tokens' tradability.

2. Specific Risks for Token Buyers/Holders

2.1 Market and Volatility Risks

• Extreme Price Volatility: The value of SRB tokens, if traded on secondary markets (DEX/CEX), can experience very large and rapid fluctuations, even over short periods. Factors such as supply and demand, market news, general sentiment towards cryptocurrencies, regulatory changes, and macroeconomic events can drastically influence the price.
• Liquidity Risk: There is no guarantee that an active and liquid secondary market for SRB tokens will develop. It might be difficult or impossible to sell the tokens at the desired price or quickly.
• Market Manipulation: Cryptocurrency markets can be subject to manipulation (e.g., "pump and dump") due to less regulation compared to traditional markets.
• Correlation with Other Cryptocurrencies: The value of SRB could be influenced by the fluctuations of major cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), even in the absence of specific news about the SynergyRecycle.B project.

2.2 Technological and Security Risks

• Smart Contract Vulnerabilities: Despite audits, the smart contracts managing SRB tokens or platform functionalities might contain bugs, errors, or vulnerabilities exploitable by malicious actors, resulting in token loss or service malfunction.
• Underlying Blockchain Risks (Polygon): The functioning of SRB tokens depends on the security and operation of the Polygon blockchain. Problems on the Polygon network (e.g., congestion, hard forks, 51% attacks) could negatively impact SRB tokens.
• Hacking and Theft Risks: Personal wallets or accounts on exchange platforms can be compromised through phishing, malware, or other attack techniques, leading to token theft.
• Loss of Private Keys: The loss or theft of private keys associated with the wallet holding SRB tokens results in the irrecoverable and permanent loss of the tokens themselves. Secure custody of keys is the user's sole responsibility.
• User Errors: Sending tokens to the wrong address or on an incompatible blockchain network is generally irreversible and results in the loss of funds.

2.3 Regulatory, Legal, and Tax Risks

• Regulatory Uncertainty: As mentioned, regulations are evolving. New laws or interpretations could restrict or prohibit the issuance, holding, exchange, or use of SRB tokens in specific jurisdictions.
• AML/KYC Obligations: Using certain features or trading on third-party platforms may require completing identity verification procedures, which could be complex or unavailable to all users.
• Tax Treatment: The taxation of gains from selling or exchanging tokens is complex and varies by country. It is the user's responsibility to stay informed and fulfill their tax obligations. Tax authorities might introduce new rules with retroactive effect.
• Regulatory Actions: Supervisory authorities could take action against the project, exchange platforms, or the entire sector, negatively impacting the value and utility of the tokens.

2.4 Operational and Project-Related Risks

• Execution Risk: The project's success depends on the SynergyRecycle.B team's ability to develop and implement the technology, app, partnerships, and features described in the roadmap. Delays, technical difficulties, or lack of funding could jeopardize the project.
• Adoption Risk: The utility and potential value of SRB tokens depend on the platform's adoption by users (recyclers), partner companies, and collection points. Poor adoption would limit the tokens' utility.
• Competition Risk: The sustainability and blockchain sectors are competitive. New competing projects might emerge offering alternative or better solutions.
• Dependence on Third Parties: The project might depend on external service providers (e.g., hosting, audits, recycling partners) whose failure or non-performance could have a negative impact.
• Changes in Project Vision: The team might need to modify the project's strategy or features in response to market or regulatory changes, affecting the tokens' expected utility.

2.5 Counterparty and Systemic Risks

• Exchange/Custodian Risk: If you hold SRB tokens on a centralized exchange platform (CEX) or through a custody service, you are exposed to the risk of failure, hacking, or fund freezes by that platform. "Not your keys, not your coins".
• Interoperability Risk: Issues in the interaction between the Polygon blockchain and other networks or services could limit token usage.
• Systemic Crises in the Crypto Sector: Widespread negative events in the cryptocurrency sector (e.g., failures of large projects, generalized market crashes) can negatively affect even solid projects like SynergyRecycle.B.

3. Mitigation Measures and User Recommendations

3.1 User Responsibility

It is crucial that you take the following measures:

• Thorough Research (DYOR): Do not base your decisions solely on our materials. Read the whitepaper, study the project, understand the technology, and evaluate the market.
• Personal Risk Assessment: Understand your risk tolerance and invest only an amount you can afford to lose completely.
• Diversification: Do not invest all your funds in a single project or digital asset. Diversification is a key risk management strategy.
• Secure Custody: If you hold SRB tokens, use secure wallets (preferably hardware/cold storage for significant amounts) and meticulously protect your private keys and/or recovery phrases. Never share them with anyone.
• Cybersecurity: Keep your devices updated, use strong and unique passwords, enable two-factor authentication (2FA) where possible, and be extremely cautious about phishing attempts or scams.
• Continuous Monitoring: Stay updated on the developments of the SynergyRecycle.B project, regulatory changes, and general crypto market conditions.
• Tax Understanding: Inform yourself about the tax obligations related to cryptocurrencies in your jurisdiction and consult an accountant if necessary.

3.2 SynergyRecycle.B Project Commitments

On our part, we commit to:

• Operating with transparency, providing regular updates on project development.
• Submitting our smart contracts to security audits by qualified third parties.
• Adopting best practices for platform and user data security.
• Monitoring regulatory developments and adapting as much as possible to applicable laws.
• Providing clear documentation (like this document and the whitepaper) on the associated risks.

However, these commitments do not eliminate the inherent risks described earlier.

4. Final Statement and Acceptance of Risk

By purchasing, holding, or using SRB tokens, you declare that you have read, understood, and fully accepted all the risks described in this Risk Policy and in the other informational materials of the project.

You acknowledge that you are acting at your sole risk and that SynergyRecycle.B is not responsible for any financial or other losses you may incur. You waive any right of recourse against SynergyRecycle.B, its team, its partners, or affiliates for losses arising from the risks outlined herein or other unforeseen risks.

This document forms an integral part of the Terms and Conditions for using SynergyRecycle.B services.

5. Useful References

For further information on the general risks associated with cryptocurrencies, it is recommended to consult authoritative sources such as:

• Websites of national financial supervisory authorities (e.g., CONSOB, BaFin).
• Websites of European authorities (e.g., ESMA, EBA).
• Publications by international organizations (e.g., FATF, IMF, BIS).
• Independent educational resources on the functioning of blockchain and cryptocurrencies.