Fusang Swap Risk Disclosure Statement

Important Notice

This Risk Disclosure Statement (“Statement”) provides you with information about certain risks associated with Participating in Fusang Swap Platform (“Swap”). It is essential that members and investors review this Statement carefully to ensure a clear understanding of the risks involved. 

Before participating, you should consider whether this is suitable for you based on your financial condition, risk tolerance level and experience. You acknowledge that the list of risks (including the descriptions of such risks) set out in this Statement is not exhaustive, and you are advised to seek professional independent advice from your own financial or legal advisors regarding the risks and merits of Swap. This Statement should be read together with all documents made available on the Fusang website, applications, other electronic platforms or otherwise provided to you via email from time to time. 

By accessing or using the Fusang Swap Platform (“Fusang Swap”), you acknowledge that you have read, understand and accepted the contents of this Statement, including the risks described herein:

1. Your transactions are final and irreversible

• Transaction Risk: Due to the nature of blockchain technology, transactions are final and irreversible and there is no "undo" button. If you send assets to the wrong address or make a mistake during a Swap, Fusang is unable to recover your funds.

2. You are your own bank

• Cybersecurity & Private Keys: You are solely responsible for the security of your private keys and recovery phrases. if you lose access to these, or if they are compromised, your assets may be permanently unrecoverable. for the avoidance of doubt, Fusang will never ask for your private keys and recovery phrases.

3. Market & Investment Risks

• Price Volatility: The value of digital assets and tokenised securities may fluctuate significantly. You may lose the entire value of your investment. Past performance is not a reliable indicator of future results.
• Liquidity Risk: Digital assets may be difficult to sell at a fair market price due to low trading volumes or market disruption. There is no guarantee that a liquid market will exist for any asset at any given time.
• Asset-Backed Risk: For tokens like Islamic Liquidity Sukuk Fusang Depository Receipts (“ILSF”), the value is tied to an underlying asset. Any impairment or legal issue affecting the underlying asset or its custodian will directly impact the value of your ILSF token.

4. Operational & Technical Risks

• Protocol & Smart Contract Risk: Fusang Swap relies on automated smart contracts. While audited, these are subject to "code risk," where bugs or vulnerabilities could lead to the loss of assets or unintended execution of trades.
• Blockchain Reliability: The underlying blockchain (e.g., Ethereum) may experience congestion, forks, or technical failures that delay transactions or lead to a loss of access to your assets.

• Infrastructure Risk: Despite extensive internal testing, code reviews, and simulations, all smart contracts governing the Fusang Swap protocol are subject to potential software bugs, logic errors, or unforeseen vulnerabilities. Smart contracts are complex programs, and it is technically impossible to guarantee that code is 100% free of defects.
• System Outages: While we strive for 100% uptime, technical failures in internet infrastructure or blockchain nodes could temporarily prevent you from accessing your account or executing trades.

5. Specific Risks for Liquidity Providers

• Impermanent Loss: By providing liquidity, you may earn fees, but you also risk "Impermanent Loss" if the price ratio of the assets in the pool changes significantly from the time of deposit. For the avoidance of doubt, “Impermanent Loss” shall mean the loss in value that occurs if the price ratio of assets in a liquidity pool does not return to the same ratio at which you provided them.
• Slippage & Impact: Large trades in pools with low liquidity may result in significant price slippage, where the final execution price is significantly worse than the quoted price.

Acknowledgement

By using Fusang Swap, you acknowledge that:

1. You have the necessary technical and financial knowledge to understand these risks.
2. You are trading at your own risk and have not received any investment advice from Fusang Exchange or Block Tree Ltd.
3. You are prepared to sustain a total loss of funds used in these activities.