Risks Disclosure Statement
Last updated: October 28, 2021
This Risk Disclosure Statement is a part of and to be read in conjunction with the Gearbox Terms of Service. Capitalised terms used in this Risk Disclosure Statement shall have the meanings assigned to them in the Gearbox Terms of Service.
Gearbox App is in its Beta Stage
Gearbox App is in its beta stage, which means that the Gearbox App and all related software, including blockchain software and smart-contracts, are experimental. Gearbox App is provided on an “as is” and “as available” basis, without warranty of any kind, either expressed or implied, including, without limitation, warranties that the Gearbox App or any related software are free of defects, vulnerabilities, merchantable, fit for a particular purpose or non-infringing. Risk of Software Weaknesses Although we make reasonable efforts to ensure that the Gearbox App and related software follow the high-security standards, we do not warrant or represent that the Gearbox App or any related software are secure or safe, or protected from fishing, malware or other malicious attacks. Further, the Gearbox App and related software may contain weaknesses, bugs, vulnerabilities, viruses or other defects which may have a material adverse effect on the operation thereof, or may lead to losses and damages for you, other users of Gearbox App, or third persons.
Risk Inherent in the Underlying Blockchain Networks
Gearbox App interacts with the Protocol deployed on the Ethereum Virtual Machine-compatible blockchain network(s). As a result, any malfunction, breakdown or abandonment of such blockchain(s) may have a material adverse effect on the Gearbox App and Protocol. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the Gearbox App and related blockchain software by rendering ineffective the cryptographic consensus mechanism that underpins the blockchain. The smart-contract concept, the underlying software and software platforms, including the blockchain networks, are still in an early development stage and unproven. Although it is very unlikely, the blockchain, as well as any other blockchain, can be attacked which may result in downtime, consensus split, long reorganisation of the chain, 51 percent attack, or other adverse outcomes each of which may lead to complete loss of your assets implemented on such blockchain network.
Risk Inherent in the Protocol
Gearbox App interacts with the Protocol and when using the Gearbox App you may be exposed to certain risks related to the operation and functioning of the Protocol. The Protocol is complex, the majority of its components and functional elements are risky and experimental. You should not use or interact with the Protocol unless you fully understand how it works and the consequences of transactions carried out with the use of the Protocol. Gearbox App derives information from the Protocol, related software and underlying blockchain network(s) in an automated manner, which means that such information is not verified. As a result, such information may not be true, complete, timely, accurate, or sufficient. Furthermore, certain functions within the Protocol may be executed by third parties that may not act in a timely or reliable manner, or as expected or intended, or may fail to act, which can lead to partial or complete loss of your digital assets. Risk of Flawed Logic of Gearbox App The underlying logic of the Gearbox App and related software may be flawed, defective or impaired, which can result in smart-contracts operating incorrectly or not as expected, or transactions being executed in violation of logic which underpins the smart-contracts, which can lead to partial or complete loss of digital assets used in the transaction. Risk of Confusing User Interface Certain user interface elements or design decisions of the Gearbox App can be confusing or mislead you, which may result in the execution of a different action or transaction than intended or desired, or connection of a wrong digital wallet, account or network.
Risk of Legal Uncertainty
Just like any other business, the intended activities of Gearbox may be subject to various laws and regulations in the countries where it operates or intends to operate. We might be obliged to obtain different licenses or other permissive documents in some or all jurisdictions where we intend to operate our business, therefore, our business in such jurisdictions shall always be subject to obtaining such licenses or permissive documents, if so directed by applicable laws. Furthermore, regulatory actions, orders or inquiries may adversely affect the Gearbox App and Gearbox, or impair our ability to make the Gearbox App available. Additionally, changes in applicable laws or regulations or evolving interpretations of existing law could, in certain circumstances, result in increased compliance costs or capital expenditures, which could affect our ability to carry on the business model and develop the Gearbox App and related software.
Risk of Theft
We make a commercially reasonable effort to ensure that any transactions carried out via the Gearbox App are secure. Notwithstanding the aforesaid, there is no assurance that there will be no theft of the digital assets as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, double-spent attacks, flash-loan attacks, vulnerabilities or defects of the Gearbox App or related software, the Ethereum blockchain network or any other blockchain network, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. Any of the above may lead to partial or complete theft or loss of digital assets used in transactions carried out through the Gearbox App or with the use of related software.