Risk Disclosure

BEFORE USING ANY OF ALTO SERVICES, YOU SHOULD ENSURE THAT YOU FULLY UNDERSTAND AND CAN AFFORD TO UNDERTAKE THE RISKS INVOLVED.

REVIEW THE ALTO FOUNDATION TERMS OF USE AND THIS RISK DISCLOSURE BEFORE INTERACTING WITH THE ALTO PROTOCOL SOFTWARE. USE OF THE SEPARATELY OPERATED APP IS ALSO SUBJECT TO ITS OPERATOR'S TERMS.

You agree and understand that you access and use Alto at your own risk.

This brief statement does not disclose all of the risks associated with the use of Alto and related applications and services. The risks listed below, therefore, do not constitute an exhaustive list, and additional significant risks may be applicable.

Alto does not provide investment, tax, or legal advice, and you are solely responsible for determining whether any financial transaction strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. You agree and understand that you are solely responsible for determining the nature, potential value, suitability, and appropriateness of these risks for yourself, and that ALTO does not give advice or recommendations regarding borrowing and lending digital assets.

Alto may provide information including but not limited to blog posts, articles, podcasts, tutorials, and videos. The information contained therein does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the content as such. ALTO does not recommend that any digital asset should be bought, earned, sold, lent out, or held by you, and will not be held responsible for the decisions you make to buy, sell, trade, lend, or hold digital assets based on the information provided by us.

As with any asset, the value of digital assets, including DUSD and ALTO Token, can decrease and there can be a substantial risk that you can lose all of your funds. You should consult your financial advisor, legal or tax professional regarding your specific situation and financial condition and carefully consider whether buying, trading, lending, borrowing or holding digital assets is suitable for you. You acknowledge that digital assets are not subject to protections or insurance provided by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation.

You should be aware that you may sustain a total loss of your funds by accessing ALTO, and that under certain market conditions, you may find it difficult or impossible to liquidate a position.

You further understand and acknowledge that:

• the risk of loss in borrowing and lending and holding digital assets may be substantial and losses may occur over a short period of time;
• DUSD is an over-collateralized Omnichain stablecoin, but may not remain pegged to the U.S. Dollar at all times and in general digital assets which are meant to mimic or follow the price of another asset (e.g., any fiat currency, commodity) may not always accurately reflect such prices, which can fluctuate above or below its intended value;
• the price and liquidity of digital assets have been subject to large fluctuations in the past and may be subject to large fluctuations in the future;
• legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of digital assets;
• digital assets, including DUSD, are not legal tender and are not backed by the government;
• transactions in digital assets may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;
• the value of digital assets may be derived from the continued willingness of market participants to exchange fiat currency or digital assets for digital assets, which may result in the potential for a permanent and total loss of value of a particular digital asset should the market for that digital asset disappear.

Past performance is no guarantee of future results.

Digital assets are largely unregulated in most parts of the world, and limited protection may be afforded to users in the event of loss. Different jurisdictions may treat digital assets differently, and the cross-border nature of the blockchain and of digital assets may make them subject to the laws of various jurisdictions. You must always make sure that any use you make of any digital asset is compliant with all applicable laws.

Different jurisdictions may impose specific tax rules and treatments to digital assets. You must ensure you understand the tax implications of your activities, and always comply with all reporting and payment obligations applicable to you.

DUSD and ALTO tokens (“DUSD”, “ALTO”, or “Tokens”) should not be held for any speculative investment purposes or other financial purposes. Tokens are to be used for their utilities within the Alto ecosystem only.

DUSD and ALTO Tokens do not entitle their holders to any share in ALTO’ profits. Moreover, ALTO is not required to provide a refund to you for any reason, to repurchase any Tokens from you, or to redeem Tokens for any consideration whatsoever. ALTO cannot and does not guarantee or make any representations regarding the transferability, future use, price, or value of DUSD or ALTO Tokens.

DUSD may be subject to depegging from the US dollar and or unexpected loss of value. As with other digital assets, DUSD and ALTO Tokens are susceptible to a wide variety of risks, including the risk of theft, loss of keys, irreversibility of transactions, failure of the underlying blockchain, and regulatory risks.

Applicable laws and regulations, including regulatory changes and enforcement actions, may limit the utility, functionality, accessibility and transferability of the Tokens, and have a substantial detrimental effect on their value.

DUSD and ALTO have not been and are not intended to be registered under the U.S. Securities Act, the UK Financial Services and Markets Act, or the applicable Laws of any other jurisdiction. ALTO does not intend or undertake to register the Tokens for trading on any securities exchange. There is a risk that the Tokens may be viewed as a security, financial instrument, specified investment, or other regulated instrument. If this occurs, the Tokens may not be transferred except pursuant to an exemption from, or a transaction not subject to, the applicable registration requirements of the applicable Laws. These restrictions may limit the transferability, value and liquidity of the Tokens.

sDUSD is a token issued by a smart contract of the Alto Protocol Software to users who deposit DUSD into it. The amount of DUSD for which one sDUSD can be redeemed is determined by that contract and may change over time. It may remain unchanged for extended periods, and no person sets, promises or guarantees any rate of change.

In addition to the risks of the Alto Protocol Software described above:

• The contract may be upgraded, paused or frozen under the protocol's administration arrangements, which may delay or prevent deposits or withdrawals.
• The contract may contain defects or be the target of attacks, with partial or total loss of the DUSD deposited.
• The value of sDUSD depends on DUSD, which may lose its peg to the US dollar.
• sDUSD may be unavailable or restricted in certain jurisdictions.

Nothing in this disclosure or on any website of the Foundation is an offer of sDUSD to the public, investment advice or a promise of any return.

ALTO DOES NOT INVITE YOU TO PARTICIPATE IN THE ALTO ECOSYSTEM.

ALTO INVITES YOU TO ALWAYS DO YOUR OWN RESEARCH, KEEP YOUR PRIVATE KEYS SAFE, AND CLOSELY ASSESS YOUR RISK TOLERANCE.