Involvement with https://dea.sg/ (hereinafter referred to as "the Project") and DEP Tokens entails high risks due to their nature. Participants, purchasers, and users must fully understand not only the vision and technical possibilities described in this White Paper but also the following risk factors, and must make decisions based on their own responsibility and judgment.
1. Legal and Compliance Risks
1.1 Regulatory Uncertainty regarding Crypto Assets Laws and regulations regarding crypto assets (virtual currencies), blockchain, and Decentralized Finance (DeFi) are still under development worldwide and are extremely fluid. In the future, the holding, trading, or use of DEP Tokens may be restricted or prohibited in certain jurisdictions. Furthermore, changes in the interpretation of securities laws, banking laws, the Payment Services Act, etc., pose a risk of having a significant impact on the operation of the Project or the circulation of tokens (including delisting from exchanges or suspension of services).
1.2 Data Privacy and Compliance Data collected in this Project is anonymized before being recorded on-chain and processed in compliance with international privacy regulations such as GDPR. However, when handling "individual behavioral data" and "corporate dormant data," we handle such data with legal compliance as the top priority, adhering to laws such as GDPR (EU General Data Protection Regulation), CCPA (California Consumer Privacy Act), and APPI (Act on the Protection of Personal Information of Japan). Future legal amendments may change requirements regarding data collection methods, storage methods (such as the feasibility of on-chain recording), or secondary use of data, potentially forcing modifications to the business model. In particular, regarding the legal consistency between the "Right to be Forgotten (Right to Erasure)" and "blockchain immutability," there are areas where interpretations in each country have not yet been settled.
2. Technical and Security Risks
2.1 Protocol and Smart Contract Vulnerabilities The DEP Protocol adopts a new L1 blockchain and a proprietary consensus algorithm. While the development team strives to ensure safety through rigorous audits by security audit firms and bug bounty programs, this does not completely guarantee the absence of unknown bugs, security holes, or logical defects in smart contracts. There is a risk of asset theft or network suspension due to hacking or exploits (abuse of vulnerabilities) by malicious third parties.
2.2 Reliability of Validators and Oracles The reliability of this network depends on the accuracy of data verification by decentralized validators and AI algorithms. The risk that fraudulent data is recorded on-chain as "correct" due to collusion by validators or adversarial attacks against AI models cannot be completely eliminated. Although we attempt to deter this through slashing (penalty) mechanisms, the integrity of the system may be temporarily compromised.
2.3 Dependence on External Systems This architecture uses external storage for data preservation and cross-chain bridges for interoperability. In the event of a failure in these external systems or an attack on the bridge, there may be a cascading impact on the functions of the Project or the safety of assets.
3. Market and Economic Risks
3.1 Token Price Volatility The market price of DEP Tokens may fluctuate wildly due to factors beyond the control of the operation team, such as macro-economic factors in the overall crypto asset market, trends of regulatory authorities, and the rise of competing projects, in addition to the progress of the Project. While the "Dual-Burn Strategy" aims to optimize the supply-demand balance, this does not guarantee the rise or stability of the token price. Participants must recognize the risk of losing part or all of their investment principal.
3.2 Demand Fluctuations in the Data Market The revenue model and token burning mechanism of the Project depend on "real demand" for AI training data and ad fraud prevention data. There is a risk that the ecosystem growth may stagnate if the anticipated data demand does not occur due to changes in AI technology trends (e.g., the value of human-derived data decreasing due to the evolution of synthetic data) or reductions in corporate data purchase budgets caused by a global recession.
3.3 Competition Risk The blockchain and data markets are areas of intensifying competition. Competitors with superior technology, stronger capital, or broader user bases may appear and take market share from the DEP Protocol.
4. Risks Related to Project Operations
4.1 Roadmap Delays The roadmap described in this document is a prediction based on the development plan at this time. Due to technical challenges, regulatory compliance, changes in partnerships, or funding status, development milestones or the implementation timing of functions may be significantly delayed, or some functions may not be implemented.
4.2 Key Management and Irreversibility Transactions on the blockchain are irreversible. If a user loses, has stolen, or forgets their private key or seed phrase, they will become unable to access their held DEP Tokens or recorded data assets, and there are no means to recover them.
Disclaimer
Purpose of Information Provision This White Paper (hereinafter referred to as "this Document") has been prepared solely for the purpose of providing information regarding the DEP Protocol and related projects, and does not constitute an offer to sell, a solicitation of an offer to buy securities, commodities, or financial products, or investment advice in any jurisdiction. This Document does not constitute part of any contract or promissory note and should not be relied upon as the basis for any contract or investment decision.
Forward-Looking Statements This Document contains statements regarding future plans, forecasts, expectations, and outlooks (expressions such as "plan," "aim," "predict," etc.). These statements are based on the assumptions and beliefs of the operation team at the time of the preparation of this Document, and actual results, performance, or achievements may differ materially from these statements due to known and unknown risks, uncertainties, and other factors. The operation team assumes no obligation to update these statements based on new information or future events.
Disclaimer of Warranties The Project and DEP Tokens are provided on an "as is" and "as available" basis. The operation team makes no warranties of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose, title, and non-infringement. Furthermore, no representation or warranty is made regarding the accuracy, completeness, or reliability of this Document.
Limitation of Liability To the maximum extent permitted by applicable law, the operation team, affiliates, and their officers and employees shall not be liable for any direct, indirect, incidental, special, punitive, or consequential damages (including but not limited to loss of profits, loss of data, loss of use, or loss of goodwill) arising from the use of this Document, participation in the Project, or the purchase, holding, or sale of DEP Tokens, regardless of whether based on contract, tort (including negligence), or other legal theories.
Jurisdictional Restrictions The distribution of this Document or the sale of DEP Tokens may be restricted or prohibited by the laws of specific countries or regions (including but not limited to the United States, Mainland China, and other sanctioned countries). Participants bear the responsibility to confirm and comply with the laws and regulations of their jurisdiction of residence.