Risc Factors

You should carefully consider and evaluate each of the following risk factors and all other information contained in the Terms before deciding to participate in the Dominant investors  Token Generation Event (the “TGE”). To the best of  Dominant Investors Ltd* (the “Company”) knowledge and belief, all risk factors which are material to you in making an informed judgement to participate in the TGE have been set out below. If any of the following considerations, uncertainties or material risks develops into actual events, the business, financial position and/or results of operations of the Company and the maintenance and level of usage of the Dominant investors platform and the DMIN Tokens could be materially and adversely affected. In such cases, the trading price of DMIN Tokens (in the case where they are listed on a cryptocurrency exchange) could decline due to any of these considerations, uncertainties or material risks, and you may lose all or part of your DMIN Tokens.

RISKS RELATING TO PARTICIPATION IN THE TOKEN GENERATION EVENT

 There is no prior market for DMIN Tokens and the TGE may not result in an active or liquid market for the DMIN Tokens Prior to the TGE, there has been no public market for the DMIN Tokens.

Although the Company will use reasonable endeavors to seek the approval for availability of the DMIN Tokens for trading on a cryptocurrency exchange, there is no assurance that such approval will be obtained. Furthermore, even if such approval is granted by a cryptocurrency exchange, there is no assurance that an active or liquid trading market for the DMIN Tokens will develop or if developed, be sustained after the DMIN Tokens have been made available for trading on such cryptocurrency exchange. There is also no assurance that the market price of the DMIN Tokens will not decline below the original purchase price (the “Purchase Price”). The Purchase Price may not be indicative of the market price of the DMIN Tokens after they have been made available for trading on a cryptocurrency exchange.

A DMIN Token is not a currency issued by any central bank or national, supra-national or quasi-national organization, nor is it backed by any hard assets or other credit. The Company is not responsible for nor does it pursue the circulation and trading of DMIN Tokens on the market. Trading of DMIN Tokens will merely depend on the consensus on its value between the relevant market participants, and no one is obliged to purchase any DMIN Token from any holder of the DMIN Token, including the purchasers, not does anyone

guarantee the liquidity or market price of  DMIN Tokens to any extent at any time. Furthermore, DMIN Tokens may not be resold to purchasers who are citizens or permanent residents of Singapore, PRC and/or the USA (including its territories and possessions) or any other jurisdiction where the purchase of DMIN Tokens may be in violation of applicable laws. Accordingly, the Company cannot ensure that there will be any demand or market for DMIN Tokens, or that the Purchase Price is indicative of the market price of DMIN Tokens after they have been made available for trading on a cryptocurrency exchange.

Future sales or issuance of the DMIN Tokens could materially and adversely affect the market price of DMIN Tokens

Any future sale or issuance of the DMIN Tokens would increase the supply of DMIN Tokens in the market and this may result in a downward price pressure on the DMIN Token. The sale or distribution of a significant number of DMIN Tokens outside of the TGE (including but not limited to the sales of  DMIN Tokens undertaken after the completion of the initial crowdsale, issuance of  DMIN Tokens to persons other than purchasers for purposes of community initiatives, business development, academic research, education and market expansion and issuance of DMIN Tokens as a reward to users of the Dominant investors platform), or the perception that such further sales or issuance may occur, could adversely affect the trading price of the DMIN Tokens.

Negative publicity may materially and adversely affect the price of the DMIN Tokens

Negative publicity involving the Company, Dominant Investors, Inc. (the company’s predecessor organized in Delaware, USA), the Dominant investors platform, the DMIN Tokens or any of the key personnel of the Company or Dominant Investors, Inc., may materially and adversely affect the market perception or market price of the DMIN Tokens, whether or not it is justified.

We may not be able to pay any anticipated rewards in the future

There is no assurance that there will be any transaction volume such that you will receive any rewards anticipated to be distributed to active users of the Dominant investors platform. Further, even in the event there is substantial transaction volume and interactions among the users and the Dominant investors platform, there is no assurance you personally will receive any part of the rewards. This is because the ability of the Company to pay any reward to you will depend on the future results of operations and the future business and financial condition of the Company or Dominant Investors, Inc. and there is no assurance of the future results of operations and the future business and financial condition of the Company or Dominant Investors, Inc.

There is no assurance of any success of Dominant investors Platform or any Future Business Line

The value of, and demand for, the DMIN Tokens hinges heavily on the performance of the Dominant investors platform and the accuracy of its hybrid intelligence technology. There is no assurance that the Dominant investors platform will gain traction after its launch and achieve any commercial success. Furthermore, there is no assurance that the hybrid intelligence technology developed by Dominant Investors, Inc. will continue to deliver predictions with a satisfying degree of accuracy. Although Dominant Investors, Inc. has performed a number of pilots testing the Dominant investors platform with relatively positive results, the Dominant investors platform has not been fully developed and finalized and is subject to further changes, updates and adjustments prior to its launch. Such changes may result in unexpected and unforeseen effects on its projected appeal to users, possibly due to the failure to meet users’ preconceived expectations based on the beta version, and hence impact its success. Limited usage of the Dominant investors platform and potential lack of trust for its crowdsourced predictive accuracy would impact the public demand for the DMIN Tokens and correspondingly the trading price of the DMIN Tokens. While the Company has made every effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies raised in the TGE will be sufficient for the development of the Dominant investors platform and/or for the proper structuring and licensing of the anticipated Dominant investment fund. For the foregoing or any other reason, the development of the Dominant investors platform and launch of the anticipated Dominant investment fund may not be completed and there is no assurance that it will be launched at all. As such, distributed DMIN Tokens may hold little worth or value, and this would impact its trading price.

The trading price of the DMIN Tokens may fluctuate following the Token Generation Event

The prices of cryptographic tokens in general tend to be relatively volatile, and can fluctuate significantly over short periods of time. The demand for, and corresponding the market price of, the DMIN Tokens may fluctuate significantly and rapidly in response to, among others, the following factors, some of which are beyond the control of the Company and Dominant Investors, Inc.:

  • new technical innovations;

(b) analysts’ speculations, recommendations, perceptions or estimates of the DMIN Token’s market price or the Company’s or (a) new technical innovations; (b) analysts’ speculations, recommendations, perceptions or estimates of the DMIN Token’s market price or the Company’s or Dominant Investors, Inc.’s financial and business performance;

(c) changes in market valuations and token prices of entities with businesses similar to that of the Company or Dominant Investors, Inc. that may be listed on the same cryptocurrency exchanges as the DMIN Tokens;

(d) announcements by Dominant Investors, Inc. of significant events, for example partnerships, sponsorships, new product developments;

(e) fluctuations in market prices and trading volume of cryptocurrencies on cryptocurrency exchanges;

(f) additions or departures of key personnel of the Company and/or Dominant Investors, Inc.;

(h) success or failure of  Dominant Investors, Inc.’s management in implementing business and growth strategies;

(i) changes in conditions affecting the blockchain or financial technology industry, the general economic conditions or market sentiments, or other events or factors.

The funds raised in the Token Generation Event are exposed to risks of theft

The Company will make every effort to ensure that the funds received from the TGE will be securely held in an escrow wallet, which is a multi-signature address with access thereto by private keys held by reputable and trusted parties. Further, upon receipt of the funds from the Company, Dominant Investors, Inc. will make every effort to ensure that the funds received by it from the Company will be securely held through the implementation of security measures. Notwithstanding such security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the TGE website, in the smart contract(s) on which the escrow wallet and the TGE relies, on the Ethereum or any other blockchain, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. In such event, even if the TGE is completed, the Company or Dominant Investors, Inc. may not be able to receive the, Inc.’s financial and business performance;

(c) changes in market valuations and token prices of entities with businesses similar to that of the Company or Dominant Investors, Inc. that may be listed on the same cryptocurrency exchanges as the DMIN Tokens;

(d) announcements by Dominant Investors, Inc. of significant events, for example partnerships, sponsorships, new product developments;

(e) fluctuations in market prices and trading volume of cryptocurrencies on cryptocurrency exchanges;

(f) additions or departures of key personnel of the Company and/or Dominant Investors, Inc.;

(h) success or failure of  Dominant Investors, Inc.’s management in implementing business and growth strategies;

(i) changes in conditions affecting the blockchain or financial technology industry, the general economic conditions or market sentiments, or other events or factors. The funds raised in the Token Generation Event are exposed to risks of theft The Company will make every effort to ensure that the funds received from the TGE will be securely held in an escrow wallet, which is a multi-signature address with access thereto by private keys held by reputable and trusted parties. Further, upon receipt of the funds from the Company, Dominant Investors, Inc. will make every effort to ensure that the funds received by it from the Company will be securely held through the implementation of security measures. Notwithstanding such security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the TGE website, in the smart contract(s) on which the escrow wallet and the TGE relies, on the Ethereum or any other blockchain, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. In such event, even if the TGE is completed, the Company or Dominant Investors, Inc. may not be able to receive the cryptocurrencies raised and Dominant Investors , Inc. may not be able to use such funds for the development of the Dominant investors platform and/or for launching any future business line, including but not limited to the structuring and licensing of the Dominant investment fund. In such case, the launch of the Dominant investors platform and the structuring and licensing of the Dominant investment fund might be temporarily or permanently curtailed. As such, distributed DMIN Tokens may hold little worth or value, and this would impact its trading price.

RISKS RELATING TO THE ESCROW WALLET

The private keys to the escrow wallet may be compromised and the cryptocurrencies may not be able to be disbursed The escrow wallet is designed to be secure. Each of the holders of the three (3) private keys to the escrow wallet will use all reasonable efforts to safeguard their respective keys, but in the unlikely event that any two (2) of the three (3) keys to the escrow wallet are, for any reason whatsoever, lost, destroyed or otherwise compromised, the funds held by the escrow wallet may not be able to be retrieved and disbursed, and may be permanently unrecoverable. In such event, even if the TGE is successful, the Company will not be able to receive the funds raised and Dominant Investors, Inc. will not be able to use such funds for the development of the Dominant investors platform and the structuring and licensing of the Dominant investment fund. As such, distributed DMIN Tokens may hold little worth or value, and this would impact its trading price.

RISKS RELATING TO DOMINANT INVESTORS, INC.

The Dominant investors platform is developed, operated and maintained by Dominant Investors, Inc. Any events or circumstances which adversely affect Dominant Investors, Inc. or any of its successor operating entities (collectively referred to herein as “Dominant Investors, Inc.”) may have a corresponding adverse effect on the Dominant Investors platform and any future business line, including but not limited to structuring and launch of the Dominant investment fund. Such adverse effects would correspondingly have an impact on the utility, liquidity, and the trading price of the DMIN Tokens. Dominant Investors, Inc. may be materially and adversely affected if it fails to effectively manage its operations as its business develops and evolves, which would have a direct impact on its ability to maintain the Dominant investors platform and/or launch any future business lines

The financial technology and cryptocurrency industries, and the markets in which Dominant Investors, Inc. competes have grown rapidly over the past four years and continue to evolve in response to new technological advances, changing business models and other factors. As a result of this constantly changing environment, Dominant Investors, Inc. may face operational difficulties in adjusting to the changes, and the sustainability of Dominant Investors, Inc. will depend on its ability to manage its operations and ensure that it hires qualified and competent employees, and provides proper training for its personnel. As its business evolves, Dominant Investors, Inc. must also expand and adapt its operational infrastructure. Dominant Investors, Inc.’s business relies on its blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology, and on interactive platform platforms for crowdsourced predictive analytics. All of these systems and tools represent complex, costly, and rapidly changing technical infrastructure. In order to demonstrate continued ability to effectively manage technical support infrastructure for the Dominant investors  platform, Dominant Investors, Inc. will need to continue to upgrade and improve its data systems and other operational systems, procedures and controls. These upgrades and improvements will require a dedication of resources, are likely to be complex and increasingly rely on hosted computer services from third parties that Dominant Investors, Inc. does not control. If Dominant Investors, Inc. is unable to adapt its systems and organization in a timely, efficient and cost-effective manner to accommodate changing circumstances, its business, financial condition and results of operations may be adversely affected. If the third parties whom Dominant Investors, Inc. relies on are subject to a security breach or otherwise suffer disruptions that impact the services Dominant Investors, Inc. uses, the integrity and availability of its internal information could be compromised, which may consequently cause the loss of confidential or proprietary information, and economic loss. The loss of financial, labor or other resources, and any other adverse effect on Dominant Investors, Inc.’s business, financial condition and operations, would have a direct adverse effect on Dominant Investors, Inc.’s ability to maintain the Dominant investors platform and/or to structure and license the anticipated Dominant investment fund. Any adverse effects affecting Dominant Investors, Inc.’s business or technology are likely to also adversely impact the utility, liquidity, and trading price of the DMIN Tokens.

Dominant Investors, Inc. may experience system failures, unplanned interruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect Dominant Investors Inc.’s infrastructure network, and/or the Dominant investors platform

Dominant Investors, Inc. is not able to anticipate when there would be occurrences of hacks, cyberattacks, distributed denials of service or errors, vulnerabilities or defects in the Dominant investors platform, the smart contracts on which the Company, Dominant Investors, Inc., or the Dominant investors platform relies or on the Ethereum or any other blockchain. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof.

Dominant investors , Inc. may not be able to detect such hacks, cyber-attacks, distributed denials of service errors vulnerabilities or defects in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession.

Dominant investors, Inc.’s network or services, which would include the Dominant investors platform and, if successfully structured, licensed, and launched, the Dominant investment fund, could be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity downtime, power losses, or even intentional disruptions of its services, such as disruptions caused by software viruses or attacks by unauthorized users, some of which are beyond Dominant investors, Inc.’s control. Although Dominant investors, Inc. has taken steps against malicious attacks on its appliances or its infrastructure, which are critical for the maintenance of the Dominant investors platform, there can be no assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future, that Dominant investors, Inc.’s enhanced security measures will be effective. Dominant investors, Inc. may be prone to attacks on its infrastructure intended to steal information about its technology, financial data or user information or take other actions that would be damaging to Dominant investors, Inc. and/or holders of the DMIN Tokens. Any significant breach of Dominant Investors, Inc.’s security measures or other disruptions resulting in a compromise of the usability, stability and security of the Dominant investors platform may adversely affect the utility, liquidity and/or trading price of the DMIN Tokens.

We are dependent in part on the location and data centre facilities of third parties

Dominant Investors, Inc. current infrastructure network is in part established through servers which it owns and houses at the location facilities of third parties, and servers that it rents at data center facilities of third parties. If  Dominant Investors, Inc. is unable to renew its data facility lease on commercially reasonable terms or at all, Dominant Investors, Inc. may be required to transfer its servers to a new data center facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures. Additionally, the third party providers of such facilities may suffer a breach of security as a result of third party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorized access to the data in such servers. As techniques used to obtain unauthorized access to, or to sabotage systems change frequently and generally are not recognized until launched against a target, Dominant Investors, Inc. and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures. Any such security breaches or damages which occur which impact upon Dominant Investors, Inc.’s infrastructure network and/or the Dominant investors platform may adversely impact the utility, liquidity, and/or trading price of the DMIN Tokens.

General global market and economic conditions may have an adverse impact on Dominant Investors Inc. operating performance, results of operations and cash flows

Dominant Investors, Inc. has been and could continue to be affected by general global economic and market conditions. Challenging economic conditions worldwide have from time to time, contributed, and may continue to contribute, to slowdowns in the information technology industry at large. Weakness in the economy could have a negative effect on Dominant Investors, Inc.’s business, operations and financial condition, including decreases in revenue and operating cash flows, and inability to attract future equity and/or debt financing on commercially reasonable terms. Additionally, in a down-cycle economic environment, Dominant Investors, Inc. may experience the negative effects of a slowdown in trading and usage of the Dominant investors platform and may delay or cancel the structuring, licensing, and launch of the anticipated Dominant investment fund. Suppliers on which Dominant Investors, Inc. relies for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on Dominant Investors, Inc. operations or expenses. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant adverse impact on Dominant Investors, Inc.’s business, financial condition and results of operations and hence the Dominant Investors platform and/or ability to structure, license and launch the Dominant investment fund. Any such circumstances would then correspondingly negatively impact the utility, liquidity, and/or trading price of the DMIN Tokens.

The Company, Dominant Investors, Inc. or the DMIN Tokens may be affected by newly implemented regulations

Cryptocurrency trading is generally unregulated worldwide, but numerous regulatory authorities across jurisdictions have been outspoken about considering the implementation of regulatory regimes which govern cryptocurrency or cryptocurrency markets. The Company or the DMIN Tokens may be affected by newly implemented regulations relating to cryptocurrencies or cryptocurrency markets, including having to take measures to comply with such regulations, or having to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come at a substantial cost and may also require substantial modifications to the Dominant Investors platform and/or the anticipated Dominant investors fund. This may impact the appeal of the Dominant Investors platform and the anticipated Dominant investment fund for users and result in decreased usage of the Dominant investors platform and the DMIN Tokens. Further, should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the Dominant investors platform and structuring, licensing, and launching the Dominant investment fund may no longer be commercially viable and the Company or Dominant Investors, Inc. may opt to discontinue the Dominant investors platform, the anticipated Dominant Investment fund and/or the DMIN Tokens. Further, it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the Dominant investors platform, the anticipated Dominant Investment fund and the DMIN Tokens. The Company or Dominant Investors, Inc. may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the utility, liquidating, and/or trading price of DMIN Tokens will be adversely affected or DMIN Tokens may cease to be traded.

 There may be unanticipated risks arising from the DMIN Tokens

Cryptographic tokens such as the DMIN Tokens are a relatively new and dynamic technology. In addition to the risks included in the above discussion of Risk Factors, there are other risks associated with your purchase, holding and use of the DMIN Tokens, including those that the Company and Dominant Investors, Inc. cannot anticipate. Such risks may further appear as unanticipated variations or combinations of the risks discussed above.