Risks and Disclosures

Currency Regulation Risks

Governments are still grappling with public policy on the regulation of cryptocurrencies as a form of settlement in trade. Governments adverse to the proliferation of the use of cryptocurrencies in local commerce could issue laws and regulations deeming the use of cryptocurrencies a regulated activity. This could result in holders of the Coins being unable to use their Coins in the future without further regulatory compliance by the Company. Project, its affiliates and the FRUITS team, as well as understand the overall framework and vision for FRUITS prior to purchasing FRTS coins.

Risks Associated with Use of the FRUITS Platform

The use of cryptocurrency exchanges is complex and subject to stringent qualification requirements. There is no guarantee that the developers will be able to successfully create a system that allows payment for services using global cryptocurrencies. The failure to establish a network will result in decreased liquidity of the Coins as a form of settlement currency within the FRUITS Platform.

Taxations Risks

The use of the Coins as a form of settlement currency may or may not be subject to local income tax, capital gain taxes or other forms of taxes. This uncertainty in tax legislation may expose merchants and customers alike to unforeseen future tax consequences associated with the use of the Coins as a settlement currency, and/or the trading of the Coins for capital gains.

Capital Control Risks

Many jurisdictions impose strict controls on the cross-border flow of capital. Holders of the Coins may be subject to these regulations and/or arbitrary enforcement of such regulations at any time. This might make the transfer of the Coins out of the local jurisdiction to overseas exchanges an unlawful activity, exposing the user of the Coins to government fines or other regulatory sanction.

CFT and AML Regulations

Many jurisdictions have enacted regulations to combat terrorist financing and money-laundering activities. The use of cryptocurrencies by bad actors could breach such regulations. Any illicit use of the Coins could severely impact the global reputation of the FRUITS Platform. In such an event, it is not inconceivable that this could trigger scrutiny by CFT and AML regulators and potentially cause significant disruption to the distribution and circulation of the Coins in the FRUITS Platform.

Blockchain Risks

The Coins may be subject to expropriation and/or theft. Hackers or other malicious groups or organizations may attempt to interfere with the Coins in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing.

The FRUITS Platform and all of the matters outlined in the Whitepaper are new and untested. The FRUITS Platform might not be capable of completion, implementation or adoption. It is possible that no blockchain utilizing the FRUITS Platform will

ever be launched and there may never be an operational platform. Even if the FRUITS Platform is completed, implemented and adopted, it might not function

as intended, and any coins associated with a blockchain adopting the FRUITS Platform may not have functionality that is desirable or valuable. Also, technology is changing rapidly, so the FRUITS Platform and the Coins may become outdated. The regulatory status of cryptographic coins, digital assets, and blockchain technology is unclear or unsettled in many jurisdictions.

We will contribute to the execution of the project as much as possible without neglecting our duty of care as a prudent manager. In addition, we naturally comply with the regulations of each country when we carry out projects. However, it is difficult to predict how or whether governmental authorities will regulate such technologies. It is likewise difficult to predict how or whether any governmental authority may make changes to existing laws, regulations and/or rules that will affect cryptographic coins, digital assets, blockchain technology, and its applications.

Such changes could negatively impact the FRUITS Platform and/or the Coins in various ways, including, for example, through a determination that the Coins are regulated financial instruments that require registration. The company may cease the distribution of the Coins,

the development of the FRUITS Platform or cease operations in a jurisdiction if governmental actions make it unlawful or commercially undesirable to continue to do so.

Business Risks

The Company’s principal competitors may have greater financial resources than those available to the Company and thus be in a better position to attract talent and initiate projects. The Company’s ability to remain competitive may depend

in part upon its ability to develop new and enhanced products or services and

to introduce these products or services in a timely and cost-effective manner. In addition, product and service introductions or enhancements by the Company’s competitors or the use of other technologies could cause a decline in sales or loss of market acceptance of the Company’s existing products and services. There can be no assurances that the Company shall be successful in selecting, developing, and marketing new products and services or in enhancing its existing products

or services. Failure to do so successfully may adversely affect the Company’s business, financial condition, and results of operations.

The Company’s ability to realize its objectives shall be dependent on its ability to attract and retain additional, qualified personnel. Competition for such personnel can be intense, and there can be no assurance that the Company’s results shall not be adversely affected by difficulty in attracting and/or retaining qualified personnel. The industry in which the Company operates is new and may be subject to heightened oversight and scrutiny, including investigations or enforcement actions. There can be no assurance that governmental authorities will not examine the operations

of the Company and/or pursue enforcement actions against the Company. Such governmental activities may or may not be the result of targeting the Company in particular. All of this may subject the Company to judgments, settlements, fines or penalties, or cause the Company to restructure its operations and activities or to cease offering certain products or services, all of which could harm the Company’s reputation or lead to higher operational costs, which may, in turn, have a material adverse effect on the Coins and/or the development of the FRUITS Platform.

Cautionary Note On Forward-looking Statements

All statements contained in this Whitepaper, statements made in press releases or in any place accessible by the public and oral statements that may be made by the Company or its directors, executive officers or employees acting on behalf of the Company, that are not statements of historical fact constitute “forward-looking statements.”

Given that risks and uncertainties that may cause the actual future results, performance or achievements of the Company and/or its affiliates to be materially different from that expected, expressed or implied by the forward-looking statements in this Whitepaper, undue reliance must not be placed on these statements.

These forward-looking statements are applicable only as of the date of this Whitepaper. Neither the Company and/or its affiliates nor any other person represents, warrants, and/or undertakes that the actual future results, performance or achievements of the Company and/or its affiliates will be as discussed in those forward -looking statements. The actual results, performance or achievements of the Company and/or its affiliates may differ materially from those anticipated in these forward-looking statements.

Nothing contained in this Whitepaper is or may be relied upon as a promise, representation or undertaking as to the future performance or policies of the Company and/or its affiliates. Further, the Company and/or its affiliates disclaim any responsibility to update any of these forward-looking statements or publicly announce any revisions to these forward-looking statements to reflect future developments, events or circumstances, even if new information becomes available or other events occur in the future.