Risk Disclosure

    General Risk Disclaimer

    Investing and participating in digital assets and blockchain-related activities involve significant risks. By engaging with Wrapped Gold Council ("WRGC") and wGOLD, you acknowledge and accept these risks. WRGC and wGOLD are experimental technologies, subject to continuous developments, regulatory scrutiny, and operational risks. Past performance is no indication of future results.

    Regulatory Risk

    The legal and regulatory frameworks governing digital assets and decentralised finance ("DeFi") are evolving rapidly. WRGC operates in compliance with applicable laws; however, changes in regulatory policies may adversely affect operations, token valuation, liquidity, and access to the wGOLD ecosystem. Users must ensure compliance with their jurisdiction's regulatory requirements before participating.

    Market and Volatility Risk

    Digital assets, including wGOLD and WRGC, can experience significant price fluctuations and market volatility. Users should be prepared for substantial changes in asset value, which may result in partial or total loss of the principal. WRGC does not guarantee price stability or asset value.

    Smart Contract and Blockchain Risks

    WRGC utilises blockchain technology and smart contracts, which carry inherent risks such as code vulnerabilities, hacks, exploits, and operational errors. Although WRGC undertakes extensive audits and security measures, these risks can never be fully eliminated. Users are encouraged to exercise caution and diligence when interacting with WRGC protocols and smart contracts.

    Liquidity and Accessibility Risks

    WRGC aims to enhance liquidity in digital gold markets; however, liquidity is dependent on market demand and participation. Insufficient liquidity may hinder buying, selling, or converting tokens promptly, potentially impacting token usability and value. There is no guarantee of continuous access to liquidity pools or markets.

    Operational and Technological Risks

    WRGC depends on various technological platforms and third-party services. System failures, cyber-attacks, or other disruptions could impact operational continuity, access to digital assets, or lead to loss of funds. Users acknowledge these technological risks and accept that WRGC bears no responsibility for third-party failures.

    No Custodial Responsibility

    WRGC does not hold custody of any physical gold or gold-backed tokens directly. It solely facilitates interaction and integration of existing gold-backed tokens through smart contracts. Users retain full responsibility for managing their assets and private keys securely.

    User Acknowledgment and Acceptance

    By interacting with WRGC or holding WRGC or wGOLD tokens, users confirm they have read, understood, and accepted the risks outlined in this disclosure. Users accept full responsibility for evaluating risks and potential rewards independently.

    Amendment and Updates

    WRGC reserves the right to amend or update this Risk Disclosure at any time without prior notice. Users are encouraged to review this section regularly to stay informed of any changes.