TERMS AND CONDITIONS OF THE ETHICHUB PLATFORM

1. Glossary
   User: Natural or legal person who provides funds to the EthicHub Platform in exchange for consideration detailed in these terms and conditions (“Terms and Conditions”).
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2. Scope
   These Terms and Conditions outline the terms governing the use of the website: https://ethichub.com and its subdomains (“EthicHub Platform” or “Platform”). By using the EthicHub Platform, you are indicating acceptance of these Terms and Conditions.
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3. Restriction
   Due to the restrictions of each country, the contracting of the Platform's services is prohibited to citizens, residents and/or tax residents and persons located in Canada, China or the United States of America (“USA”), as well as in Puerto Rico, the United States Virgin Islands, and any other territory of the USA or of any other jurisdiction where the contracting of services through virtual currencies is illegal. No services may be contracted by representatives and natural persons acting on behalf of legal entities registered in the aforementioned jurisdictions and territories, or registered in any other jurisdiction where the purchase of virtual currencies is prohibited.
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4. Risks
   You acknowledge and accept that contracting collaborative loan services, through the blockchain technology introduced by the Ethereum platform used by EthicHub entails significant financial, regulatory and reputational risks, including, but not limited to, those established in the Sole Annex of these Terms and Conditions.
   
   By contracting the service on the EthicHub Platform and accepting these Terms and Conditions, you expressly acknowledge, accept and assume the aforementioned risks, as well as the terms of the loan.
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5. Purpose and acceptance of the Terms and Conditions
   ‍The purpose of these Terms and Conditions is the contracting of a collaborative loan service that will be accessible once the User status is acquired. To acquire the User status, it is necessary for someone to be of legal age, with full capacity to contract, and to accept these Terms and Conditions.
   
   It is necessary to register on the website to become a User. The acquisition of the User status implies the prior reading and express acceptance of these Terms and Conditions and Privacy Policy of the EthicHub Platform.
   
   The User will be able to access the services offered on the EthicHub Platform:
   a) by using an email, whereby, after accepting the Terms and Conditions, a wallet will be automatically and immediately linked through the technology of Magic.link, such that EthicHub will never be the custodian of the private keys.
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   b) by connecting your wallet, which must be compatible with the Ethereum network.
   
   The User will be responsible for the maintenance and confidentiality of the private keys of his wallet and/or access to his email in the case of using email as a form of registration. Consequently, EthicHub may presume that the use of the service is being made by the registered User himself, who is obliged to inform our support team that he has either noticed fraudulent movements in his account or is aware that his keys have been compromised.
   
   EthicHub may block access to the Platform whenever it deems it necessary for security reasons, until the total restoration of the service is confirmed.
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   EthicHub will adopt the organizational and technical measures in its computer equipment aimed at ensuring proper use of the service by Users and preventing unauthorized access to the Platform.
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6. Content of Services
   The services offered by the EthicHub Platform consist of connecting lenders and borrowers through smart contracts using the technology of the Ethereum Platform and compatible blockchains. To this end, EthicHub, through its auditors, will select a borrower who has a viable agricultural project and is thus capable of repaying the loan made on the EthicHub Platform with the payment of established interest.
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   The borrower, after having their project approved in the EthicHub Platform, and after the approval of the corresponding auditor, will receive a line of credit with the term and interest established after a process of guarantee or financing of the borrower's collective collateral. This implies that the borrower himself, as well as the auditor, must be the first to deposit a predetermined amount of Ethix in the corresponding smart contract, so that the User community can proceed to fill in the guarantee until the objective of the same is reached by lending their Ethix, which will be exposed to be liquidated in case of non-payment of the borrower's line of credit, in exchange for participation in the distribution of a package of Ethix previously approved by the community when the borrower presented his project therein. In case of default on the line of credit, all Ethix will be lost.
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   Lenders, or those Users interested in the project, may contract the loan service, contributing to the selected smart contract, the amount of resources in the corresponding virtual currency that they deem appropriate with the limit set by the smart contract. Notwithstanding the foregoing, contributions made by credit or debit card do have a maximum limit of one thousand euros (€1,000). The lender chooses the term and interest of their investment, and accepts that at the end of the same, in the event that there is no liquidity at maturity in the liquidity pool that feeds the lines of credit, they will receive the Ethix that are offered as collateral for the loan with a preset ratio and until the compensation reserve is exhausted.
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   The general guarantee option is a more diversified and less risky alternative than collective guarantees since it is not exposed to a particular borrower and Ethix are only settled in the event that the compensation reserve depletes its reserves.
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   The operation of the platform is restricted to the use of Ethix for the guarantee, and a certain stablecoin for the loan, so lenders must have the corresponding Ethix or stablecoins in their wallet or purse linked to the User account of the EthicHub Platform.
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   In order to facilitate the loan, Users are allowed to participate with a credit/debit card on the EthicHub Platform. In this case, the User will choose the amount, access the payment gateway, accept the contribution of the desired amount and a script that receives confirmation from the payment gateway will contribute to the smart contract, in favor of the User's wallet, the amount of stablecoins corresponding to the exchange rate at that time marked by the Coinmarketcap platform (https://coinmarketcap.com/).
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   Carrying out transactions on the Ethereum network and similar blockchain networks requires the payment of small amounts of Ethers (known as "gas"), which allow the  financing of the operation of said blockchain network.
   
   Users accept that their contribution of virtual currencies to any of the available projects implies their acceptance of the terms and conditions on which it will be developed.
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   The User must have a registered email for communications and have completed the identification process in the case of lending stablecoins.
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   Once the investment has been made, the lender will receive an email at the email address they have provided.
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   The auditor, on behalf of all lenders or Users, will verify the terms and conditions under which the project and the collaborative loan will be developed, validating the established period of time, the amount of virtual currencies and their equivalent economic amount in both euros and the currency of the country of origin of the project, and will release the economic resources to the borrower.
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   The User accepts that excess liquidity not required by lines of credit will be invested in low-risk DeFi protocols such as Aave, Uniswap, Curve, Ethena, etc., so that the promised profitability can be maintained in a sustainable manner.
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   The borrower acknowledges that the acceptance of the lenders' contributions constitutes an obligation to pay the lenders principal and interest, under the terms and conditions published on the EthicHub Platform.
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   After the period established in the line of credit has elapsed, the borrower will proceed to repay the amount of the collaborative loan plus interest, the result of which will be equal to the amount of virtual currencies necessary to reach the economic amount set in the smart contract.
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   The User understands and acknowledges that EthicHub is only the developer of the Platform and not the party responsible for the repayment of the loans, for which the borrowers and the DeFi protocols are responsible, depending on the allocation of liquidity made by EthicHub. However, EthicHub may acquire the position of borrower in cases where borrowers deliver coffee to be sold by EthicHub, in which case loans will be paid after sale of the coffee had been concluded.
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7. Requirements to obtain User status
   The User must have a computer with an Internet connection and an Internet browser. The User must also have an electronic wallet or wallet compatible with the Ethereum network. In case you do not have one yet, EthicHub provides you with the possibility of generating a wallet with your email using the Magic protocol.
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   The User must hold the status of User of the EthicHub Platform and must have accepted the Privacy Policy and these Terms and Conditions.
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   The use of the stablecoin lending service, to provide liquidity to borrowers, will be subject to the completion of the Know Your Customer (“KYC”) and the formal identification procedure in terms of Anti-Money Laundering (“AML”). The User will not be able to make contributions without having passed the KYC.
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8. Requirements and procedure to follow for the contribution of virtual currencies to the Project
   To contract the service it is necessary to have the status of User, so it will be necessary for you to have previously registered and identified yourself by providing the data requested on the Platform, a photograph of a valid identification document, and a photograph of the User holding the said document, as well as having your own wallet associated with the EthicHub Platform.
   
   The Collective Collateral Project to be invested in Ethix will contain the following information:
   1. Investment currency (Ethix).
   2. Smart contract address.
   3. Total economic amount expressed in Ethix.
   4. Interest at the investment date.
   5. Interest that will be generated when the contract is filled.
   6. Ethix rewards that will be given to investors every day.
   7. End date of the rewards.
   8. Date on which non-payment will be declared and the Ethix will be liquidated if there has been no repayment by the borrower.
   9. Information on the Ethix contributed by the borrower and the auditor, how many are requested from the community and how many are already deposited.
   10. In addition, a page with additional information about the borrowers will be kept on the website and new originators will be discussed in the forum and information on the situation of the borrowers will also be provided.
   
   The following information will be offered in general staking projects.
   1. Investment currency (Ethix).
   2. Smart contract address.
   3. Current profitability that is being obtained.
   4. Ethix delivered daily to investors.
   5. Total Ethix deposited.
   6. Investment unlock period.
   
   The following information will be offered to investors in stablecoin lending projects:
   1. Stablecoin in which the investment is made which the investor must choose).
   2. Address of the smart contract in which they are investing.
   3. Total loans made to the contract.
   4. Collateral in the form of Ethix that is assigned to the investor.
   5. Term and Interest offered by the smart contract that the investor must select before making their investment.
   
   Once the investment has been made, investors will be able to see their investments in the "my investments" section, where their investments are broken down by type of operation carried out, and where they can also see the balances in their wallets.
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   There are two ways to contribute virtual currencies to projects:
   1. Contribution with your own wallet:
   The User must have previously contributed or loaded into their account or wallet the sufficient balance that allows them to make the contribution. To do this, Users must link an existing compatible wallet or, otherwise, generate a wallet from the platform linked to their email, and load or send the corresponding virtual currency to the wallet, using any virtual currency purchase/sale service or exchange house that works with the desired currencies.
   If the User agrees, the User will indicate the amount of virtual currency to contribute and press the button enabled to start the operation.
   Next, the User will be asked to validate the service by accepting, in this case, each and every one of the contracting conditions, and to make the contribution to the public address of the smart contract that the “EthicHub platform” shows them.
   As soon as the User has definitively validated the contribution to be made to the project, a transfer will be generated that must be signed by the private key of the User's ERC-20 wallet, sending the transfer of virtual currencies to the smart contract or blockchain network.
   2. Contribution with Credit or Debit Card:
   Contributions can also be made through a credit or debit card. Contributions made in this way are limited to a maximum amount of one thousand euros (€1,000). In relation to this means, please note that EthicHub does not provide a virtual currency purchase/sale or exchange service. What this feature of the Platform allows is for Users to make a transfer to a current account owned by EthicHub; once the payment notification has been received, EthicHub will acquire the virtual currencies in an amount equivalent to that transferred in fiat currencies at the price at the time of receipt of the amount, and deposit them in the smart contract on behalf of the User wallet from a wallet controlled by a script. Therefore, EthicHub will act as a mere intermediary without ever becoming the custodian of the money since the script that automatically deposits the virtual currencies in favour of the User does so at the time of receiving the notification from the payment gateway, long before the actual receipt of the funds. This service is not part of EthicHub's business model as there is no charge for it; it is just a way to facilitate the use of the Platform.
   By "claiming" the virtual currencies, either at the end of the project or due to its cancellation, the virtual currencies will be stored in the wallet address associated with the User, and the virtual currencies are available both for reinvestment and for possible use in other projects. bank withdrawal.
   
   Once the contribution has been successfully made in both cases, the User will receive an email confirming the due date. This email will also include a link to the project page, where all relevant information about the project will be available. In the case of collateral-backed projects with Ethix, which can only be done by connecting the wallet, the email will be sent to that wallet using the Ethermail protocol.
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9. Loan Repayment
   In the case of collective collateral or guarantee projects, the interest may be claimed at any time, but the principal may not be withdrawn as long as the borrower has not repaid the associated project(s). In the event of non-payment by the borrower on the defined date, the Ethix provided to the collective collateral will be liquidated to satisfy the principal and interest of the stablecoin loans, so the User that provided collateral is at risk of total loss of their investment.
   
   In the case of stablecoin loans, the lender may request their investment with its corresponding interest at any time after the minimum investment term that they chose has ended. When requesting their funds, there is a divestment period during which lines of credit must be recovered or positions in DeFi must be divested. At the end of the divestment period, if there is not enough liquidity, the lender may recover the Ethix collateral predefined at the time of making the investment. As the collateral is a volatile virtual currency and its liquidity depends on its demand, it is possible that the value of the Ethix received exceeds or is lower than the value of the stablecoins that the lender should have received. The objective of the collective collateral system is to minimise the risk of default, but it is impossible to eliminate it completely. All profitability implies risks that the User understood the risks that are analysed in depth in the Sole Annex.
   
   In order to minimise the risk of default, export projects have been developed in which EthicHub directly or indirectly becomes the custodian of the farmers' coffee and is responsible for its sale. In these cases, the projects will be paid by EthicHub when the corresponding coffee has been sold and collected.
   
   In the event of non-payment of the lines of credit, the Ethix of the corresponding collective collateral will be liquidated in favour of the compensation reserve, since it is the latter that provides collateral to the stablecoin lenders and, therefore, it is the one that loses Ethix when they keep Ethix instead of stablecoins.
   
   In the event that the loan has been paid, in order to withdraw the amounts that correspond to you as a result of the loans, you must have carried out KYC and the identification procedure in terms of AML. If you are not identified through our KYC and other AML identification procedures, EthicHub will not be able to proceed with processing your return.
   
   In order to withdraw the funds from the smart contract, the User must access the "my investments" page, click on the withdraw funds button, sign with their wallet and generate the transaction that orders the smart contract to withdraw funds to the User's wallet. After the divestment period has elapsed, you can withdraw the funds whenever you wish.
   
   The User will receive an email with the receipt of the generated transaction, or a notice if there was any problem with it.
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10. Interest Generated
    In stablecoin loans, the User decides the interest based on the minimum term for which they committed their funds. When the said minimum term is reached, interest will continue to be generated under the same conditions until the User decides to divest. During the divestment process, which lasts 10 days, or the period during which the User’s withdrawal of funds is being processed, interest is not accrued.
    
    In collective guarantees or in the general guarantee, the interest depends on how many Users are participating, since there is a predetermined number of Ethix to remunerate all investors.
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11. Obligations
    The User is obligated to:
    1. Communicate to the EthicHub Platform all the necessary data for the access and use of the services that require prior identification, which must be truthful, current and adjusted to reality.
    2. Adopt the necessary security measures, both personal and material, to maintain the confidentiality of the private keys of your wallet and password of your email, as well as immediately notify EthicHub of the loss, misplacement, theft, robbery or illegitimate access of the User, or any third parties’ knowledge of the private keys.
    3. Make appropriate use of the services included in the EthicHub Platform, always in accordance with the applicable laws.
    4. Refrain from carrying out any activity that hinders or interferes with the operation of the services included in the EthicHub Platform.
    5. Carefully review all the information published on the EthicHub Platform about the available collaborative loans.
    6. Contribute the virtual currencies that you have decided to contribute to the collaborative loan through the EthicHub Platform.
    7. Comply with your tax obligations in your country of origin for the increases in assets generated by the loan.
    8. Comply with the obligations that correspond to you in terms of AML and, especially, not to provide false or inaccurate information during the KYC process.
    
    The User will be responsible for the damages that may have been caused to third parties, for the data provided, including but not limited to the following actions:
    1. Use of outdated, false or inaccurate data.
    2. Use by third parties of the User's private keys.
    3. The inclusion in the EthicHub Platform of comments or content that could be injurious, obscene, xenophobic, that constitute an advocacy for violence, or that in any way violate morality, public order, fundamental rights or are contrary to the applicable laws.
    
    EthicHub is obligated to:
    1. Provide access to the service, as well as guarantee its confidentiality and integrity.
    2. Attend with the reasonable diligence to all queries that the User may pose regarding the use of the services included in the EthicHub Platform.
    3. Handle the data of its Users with confidentiality, committing not to disclose the data of its Users or share it without their consent, except by requirement of competent relevant authorities.
    4. Defend compliance with the terms of the loans.
    
    By accepting these Terms and Conditions, the lender and the borrower expressly accept and acknowledge the following:
    1. That the contribution and acceptance (respectively) of virtual currencies through the EthicHub Platform constitutes, for both parties, their voluntary acceptance of the terms and conditions on which the loan service will be developed and that it is formalized through the offer and acceptance through the Platform.
    2. The borrower undertakes to use the amount received in virtual currency for the purpose as described in the project published on the EthicHub Platform, and to unconditionally refrain from allocating the funds received for any other purpose.
    3. The borrower undertakes to pay the principal and interest in accordance with the terms and conditions published on the EthicHub Platform and derived from the loan agreements they sign, through the means provided on the Platform.
    4. Failure by the borrower to repay the loan will result in the liquidation of the collateral and transfer of debt rights to the Platform, which may demand payment of the obligation judicially or extrajudicially from the borrower, without prejudice to compensation for damages and any continuing obligation of the borrower for the payment of interest (for which the borrower shall pay with all his present and future assets), unless said breach or delay is caused by any events of force majeure.
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12. Limitation of Liability
    EthicHub, its employees, directors, contractors, consultants, or advisors do not assume any responsibility, present or future, in connection with or arising from the risks set out in the Sole Annex and do not offer any guarantee with respect to these Terms and Conditions.
    
    The above limitation of limitation shall not exclude liability for willful or criminal misconduct, in which case, the User may take the appropriate legal actions.
    
    In the event of a User or a borrower not having the necessary knowledge for the use of blockchain services and systems, or not being fully aware of the risks set out in the Sole Annex, associated with contracting collaborative loan services and the use of blockchain, it is recommended that a User or a borrower do not participate in the process of contracting the service.
    
    If any provision of these Terms and Conditions is found to be null, voidable, illegal, unenforceable or inapplicable in whole or in part, the validity, legality or application of the remaining provisions of the terms will not be affected or altered in any way. The other stipulations of the Terms and Conditions remain in force and retain their full effect.
    
    EthicHub is not responsible for any tax burdens that may arise from the use of the services for any of the Users.
    
    EthicHub is also not responsible for the possible risks to which Users may be exposed, when the Users interact with smart contracts directly from outside the Platform; EthicHub has been designed to offer the greatest possible security guarantees, but cannot be held liable for events occurring outside its Platform.
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13. Privacy Policy
    For more information about our data protection and privacy policy, please refer to the Privacy Policy here.
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14. Applicable Law and Competent Jurisdiction
    These Terms and Conditions and any relationships resulting from them are governed by Spanish legislation.
    
    The parties will try to resolve in good faith any dispute or claim arising from or in relation to these Terms and Conditions through negotiations between them, through an agreed alternative dispute resolution procedure or, failing agreement, the dispute must be submitted exclusively to the jurisdiction of the courts and tribunals of Madrid (Spain).

SOLE ANNEX

RISK FACTORS

THE CLEAREST RISK FOR THE ETHICHUB COLLABORATIVE LOAN PLATFORM IS THE NEGATIVE RETURN ON USED FUNDS, AND NEITHER ETHICHUB NOR ANYONE AFFILIATED WITH ETHICHUB CAN BE HELD RESPONSIBLE FOR SAID LOSS, SINCE THE COST OF ASSUMING THIS RISK IN ITS ENTIRETY WOULD MAKE THE PROJECT UNFEASIBLE. MEMBERS OF THE ETHICHUB TEAM HAVE DEVELOPED LONG EXPERIENCE IN GRANTING CREDITS, BUT IT IS NOT POSSIBLE TO COMPLETELY ELIMINATE THE RISK OF DEFAULT, WHICH MAY ORIGINATE FROM MULTIPLE CAUSES THAT ARE DESCRIBED BELOW, TOGETHER WITH MANY OTHER RISKS THAT AFFECT A PLATFORM WITH THE CHARACTERISTICS OF ETHICHUB.

1. Risk of software deficiencies: The EthicHub Platform and smart contract system are based on the Ethereum protocol. Any malfunction, disruption, or abandonment of the Ethereum protocol could adversely affect the service, the smart contract system, or the EthicHub Platform. Additionally, advances in cryptography or technologies such as quantum computing could present risks to the service, the smart contract system, or the EthicHub Platform, rendering the cryptographic consensus mechanism underlying the Ethereum, Gnosis, Celo, or any other blockchain we may use at the time, ineffective. The concept of a smart contract system and the underlying software application and platform are still in the early stages of development. There is no guarantee that the collaborative lending service will be uninterrupted or error-free, as there is an inherent risk that the software may contain defects, weaknesses, vulnerabilities, viruses, or bugs, potentially causing, among other things, the complete loss of contributions made to the service.
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2. Regulatory risk: Blockchain technology enables new forms of interaction, and it is possible that certain jurisdictions may apply existing regulations or introduce new regulations regarding blockchain-based applications, which may conflict with the current configuration of the smart contract system. This could result in substantial modifications to the smart contracts system and/or the EthicHub Platform, including its termination and the loss of virtual currencies contributed by Users. Additionally, the regulation governing the activities proposed by the EthicHub Platform is currently uncertain. It is unclear what regulatory framework that platforms like EthicHub and its associated activities will be subject to, what nature and obligations will be imposed on EthicHub to comply with such a regulatory framework, or when/if EthicHub will be able to seek regulatory approval or succeed in obtaining the necessary licenses to lawfully conduct its proposed activities.
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3. Risk associated with uncertain regulations and enforcement actions: The regulatory status of virtual currencies and Distributed Ledger Technology (DLT) is interpretative and dynamic in many jurisdictions, making it impossible to predict precisely how regulatory authorities may apply existing regulations concerning this technology and its applications, including the EthicHub Platform. Furthermore, it is impossible to predict whether authorities will implement legislative and regulatory changes that will affect DLT and its applications, and the nature of those changes, including those impacting the EthicHub Platform and/or the blockchain on which we operate at the time. Regulatory measures could have a negative impact on the EthicHub Platform, including, for illustration purposes only, the determination that the virtual currency used for service delivery is a regulated financial instrument requiring registration or licensing. EthicHub may cease operations in a jurisdiction if regulatory actions or changes to the law or regulation make it illegal to operate in that jurisdiction or commercially undesirable to obtain the necessary regulatory approval(s) to operate in that jurisdiction.
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4. Risk of losing access to tokens due to loss of keys, custody errors, or other User errors: Virtual currency used for service delivery can only be accessed using an Ethereum wallet with a combination of the contributor's account information (address) and private key, or by opening a wallet linked to their email using Magic technology integrated into the Platform. You acknowledge, understand, and agree that if you lose or have your private key or password stolen, or if someone gains access to your email, the total amount of virtual currency in your wallet and the contributions, plus the interest that will be returned to you by the smart contract after the service is completed, are associated with your Ethereum wallet and therefore may be permanently lost and unrecoverable. Additionally, any third party gaining access to your wallet may wrongfully appropriate your virtual currency. Any error or malfunction caused by or related to the wallet or digital wallet you choose to receive and store virtual currency, including your own failure to properly maintain or use such a wallet, may also result in the loss of your virtual currency.
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5. Risk of theft: The smart contract system, the underlying software application, and the software platform (i.e., the Ethereum blockchain) may be exposed to hacking attacks or other attacks by individuals, including but not limited to malware attacks, denial-of-service attacks, consensus-based attacks, Sybil attacks, smurfing, and spoofing. Any successful attack could result in the theft or loss of contributions made, adversely affecting the collaborative loan service developed by the EthicHub Platform. Additionally, because the EthicHub Platform is based on open-source software, there is a risk that a third party may intentionally or unintentionally introduce weaknesses into the core infrastructure of the EthicHub Platform, which could negatively affect the EthicHub Platform and the virtual currencies contributed.
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6. Risk of attacks on the blockchain consensus protocol used: The blockchain used for the smart contract system is susceptible to attacks, including but not limited to double-spending attacks, majority mining power attacks, selfish mining attacks, and race condition attacks. Any successful attack presents a risk to the smart contract system, the proper execution and sequencing of token transactions, and the proper execution and sequencing of contract calculations. You understand and agree that the network of miners will ultimately control the contributions and deliveries of virtual currencies through the smart contract system and that the majority of miners may agree at any time to make changes, updates, modifications, or even delete or destroy the smart contract system, and that such a scenario could lead to the virtual currencies losing value and/or intrinsic functionality.
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7. Risk of incompatible wallet services: The wallet service provider used to contribute and receive virtual currencies must comply with the ERC20 token standard to be technically compatible with the EthicHub service. Failure to ensure such compliance may result in not gaining access to your virtual currencies.
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8. Risk of abandonment/failure: The collaborative loan service through smart contracts and the development of the EthicHub Platform may be abandoned for a variety of reasons, including but not limited to lack of public interest, commercial failure, or adverse developments in loan defaults leading to a collapse of the compensation system and mass investor loss. In the event that the project cannot move forward, it is likely that defaults will increase substantially as one of the motivations for borrowers to repay is their ability to access more funding each year. In this context the coffee used to repay export projects may be redirected for other purposes in a liquidation context as the company would be managed by an insolvency administrator.
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9. Risk of dissolution of EthicHub or the network: It is possible that for various reasons, including but not limited to, an unfavourable fluctuation in the value of virtual currencies (or other cryptographic and fiat currencies), a decline in the utility of virtual currencies due to poor adoption of the EthicHub Platform, lack of business relationships, or intellectual property challenges, the EthicHub Platform may no longer be viable to operate, and EthicHub may dissolve and be unable to continue developing its Platform.
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10. Risk of uninsured losses: Unlike bank accounts or accounts with other financial institutions, virtual currencies used for the provision of the service are not insured unless you specifically obtain private insurance to insure them. Therefore, in the event of loss or loss of utility value, there is no public insurer or private insurance contracted by EthicHub to offer you a remedy.
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11. Tax-related risks: The tax treatment of virtual currencies is uncertain. You should seek your own tax advice regarding the acquisition, storage, transfer, and use of virtual currency, and the tax consequences that may arise, such as transfer taxes, value-added tax, income taxes, and similar levies, charges, and tax reporting requirements.
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12. Risks arising from the market in which the EthicHub Platform operates: The crowdfunding market, and by extension, the EthicHub Platform, is subject to a variety of laws and regulations, competition, KYC/AML and customer due diligence procedures, privacy and data protection, consumer protection, data security, and other applicable laws and regulations. These laws and regulations, and their interpretation or application, could change. Additionally, new laws or regulations may be enacted that affect the EthicHub Platform, which could impact the utility of the virtual currencies used in the service offered by the EthicHub Platform. Moreover, Users of the Platform are or may be negatively impacted by industry-specific laws and regulations or licensing requirements. If any of these parties fail to comply with any of these licensing requirements or other applicable laws or regulations, or if these laws, regulations, or licensing requirements become stricter or otherwise expand, it could negatively affect the EthicHub Platform and the virtual currencies used in the service, including their functionality to obtain or provide services within the EthicHub Platform.
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13. Risks associated with the development and maintenance of the EthicHub Platform: The EthicHub Platform is still in early stages of development and may experience significant changes over time. While we intend for the Platform to function as described in these Terms and Conditions and their Sole Annex, and we intend to take commercially reasonable steps to achieve this, it is possible that we may need to make changes to the specifications of the service or the EthicHub Platform for various legitimate reasons. Additionally, we may not be able to maintain full and effective control over how other participants use the Platform, what products or services are offered through it by third parties. This could create the risk that the developed and maintained service or Platform may not meet your expectations at the time of contracting the service. Moreover, despite our good-faith efforts to develop and engage with the EthicHub Platform, it is still possible that the Platform may malfunction or not be adequately developed or maintained, which may negatively impact the EthicHub Platform and the contracted service.
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14. Risk of competing platforms: Alternative platforms may be established using the same open-source code and underlying protocol of the EthicHub Platform and attempt to facilitate services that are materially similar to those offered by or within the EthicHub Platform. EthicHub may face competition from these alternatives, which could negatively impact the EthicHub Platform and the service.
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15. Risk of borrower default: There are many factors that may lead to default, particularly poor borrower selection by the auditor and risks related to the agricultural activities of the borrowers, such as climate or pests.
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16. Risk of a malicious borrower: No matter how effective EthicHub or its auditing partners are in selecting borrowers, it is impossible to guarantee that the borrowers will always act in good faith. A bad-faith action by borrowers could result in a total default on the loans, among other reasons, because the project may have been falsified.
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17. Exchange rate risk: Since the loans are denominated in a stablecoin pegged to the U.S. dollar or Euros, if it were to devalue significantly, the investor could incur losses even if the borrower pays the principal and interest on time and in full.
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18. Unforeseen risks: Cryptographic tokens are a new and untested technology. In addition to the risks outlined in this Sole Annex of these Terms and Conditions, there are other risks associated with their acquisition, storage, transfer, and use, including those that EthicHub may not be able to anticipate.