DorsiumDorsium

Risk Disclosure

Last updated: January 2026

Overview

This Risk Disclosure outlines the potential risks associated with participating in the Dorsium network, purchasing hardware, acquiring Platform Access Licenses (PALs), and holding or using DORS utility tokens. Users should carefully review this disclosure before engaging with the platform.

1. General Blockchain Risks

1.1 Market Volatility

DORS utility tokens may experience significant price fluctuations due to:

  • Supply and demand dynamics in secondary markets
  • Regulatory announcements affecting cryptocurrency markets
  • Market sentiment and speculation
  • Macroeconomic factors (inflation, interest rates, geopolitical events)

Important: DORS tokens are utility tokens providing network access, NOT investments. Price fluctuations do not reflect changes in utility value.

1.2 Regulatory Changes

Cryptocurrency regulations are evolving globally:

  • New laws may restrict or prohibit token usage in certain jurisdictions
  • MiCA regulations may be updated or amended
  • Tax treatment of tokens may change
  • Compliance requirements may increase operational costs

Users are responsible for complying with laws in their jurisdiction.

1.3 Technical Vulnerabilities

Blockchain technology involves technical risks:

  • Smart contract bugs or exploits
  • Network congestion or downtime
  • 51% attacks (though HDC architecture mitigates this)
  • Key management errors (loss of private keys = permanent loss of tokens)

Dorsium commits to regular security audits, but no system is 100% secure.

2. Token-Specific Risks

2.1 No Profit Guarantee

DORS tokens do NOT guarantee:

  • Financial returns or profits
  • Price appreciation
  • ROI (Return on Investment)
  • Passive income generation

DORS tokens are utility tokens earned through active network validation work.

2.2 Liquidity Risk

  • No exchange listings are guaranteed
  • Secondary market liquidity may be limited
  • Token sales may be subject to vesting schedules (80% vested over 18 months)
  • Users may not be able to sell tokens immediately

2.3 Utility Dependence

DORS token value depends on:

  • Network adoption and usage
  • dApp ecosystem development
  • Transaction volume on Dorsium chain
  • Demand for governance participation

If network adoption is lower than expected, token utility and demand may decrease.

3. Hardware Purchase Risks

3.1 Hardware Malfunction

  • Hardware may fail or malfunction
  • Repairs may not be covered after warranty period
  • Mining rewards cease if hardware stops operating
  • No guarantee of hardware replacement

3.2 Obsolescence

  • Hardware may become outdated as technology advances
  • Network upgrades may require hardware updates
  • Mining efficiency may decrease over time
  • Resale value may depreciate

3.3 No ROI Guarantee

  • Hardware purchases do NOT guarantee profit
  • Electricity costs may exceed mining rewards
  • dPOINT/DORS rewards depend on network participation and halving schedule
  • Break-even timeline is unpredictable

Hardware is sold for network participation purposes, NOT as an investment.

4. Platform Access License (PAL) Risks

4.1 Digital Credential Risk

  • PALs are digital credentials, NOT physical goods
  • Lost access to account = lost PAL benefits
  • PALs are non-transferable until mainnet launch
  • Withdrawal rights limited after digital delivery

4.2 Vesting Schedule

  • dPOINT allocation subject to 36-month vesting
  • Users cannot access full allocation immediately
  • Early withdrawal forfeits unvested allocation
  • Vesting terms may not be modified

4.3 No Profit Expectation

  • PALs do NOT guarantee financial returns
  • Benefits are utility-based (mining multipliers, governance bonuses)
  • Value depends on network adoption and user engagement

PALs are service packages, NOT investment products.

5. Operational Risks

5.1 Pre-Mainnet Centralization

  • Current system operates off-chain with centralized database
  • Dorsium OÜ controls reward calculations (transparent but centralized)
  • Migration to mainnet involves technical risks
  • Genesis snapshot may contain errors (dispute resolution available)

Post-mainnet, operations will be fully decentralized via on-chain smart contracts.

5.2 Team Dependence

  • Project success depends on core team execution
  • Founder departure or incapacity may impact development
  • Advisory Board governance not yet active (Phase 2: Q3 2027)
  • DAO governance not yet active (Phase 3: 2029+)

Mitigation: Founder tokens vested over 10 years (12-month cliff, 2-year non-tradeable).

5.3 Funding Risk

  • Project bootstraps through hardware sales and PAL purchases (no VC backing)
  • Limited financial runway if revenue decreases
  • Mainnet launch may be delayed if funding insufficient
  • No guarantee of Kickstarter campaign success

Transparency: Quarterly financial reports (aggregated) published.

6.1 Jurisdiction Risk

  • Laws vary by country
  • Some jurisdictions may ban or restrict cryptocurrency activities
  • Users responsible for compliance with local laws
  • Dorsium may restrict access in certain regions

6.2 MiCA Evolution

  • MiCA regulations may be updated
  • Token classification may change
  • Compliance costs may increase
  • Legal opinions may evolve

Dorsium commits to ongoing legal review and MiCA compliance.

6.3 Tax Obligations

  • Users responsible for reporting and paying taxes
  • Tax treatment of tokens varies by jurisdiction
  • Mining rewards may be taxable income
  • Token sales may trigger capital gains tax

Seek professional tax advice before engaging with the platform.

7. Mitigation Strategies

Dorsium implements the following risk mitigation measures:

7.1 Technical Security

  • External security audits (Certik/Halborn) before mainnet
  • Bug bounty program (launch Q1-Q2 2026)
  • 24/7 network monitoring
  • Disaster recovery protocols

7.2 Transparency

  • Quarterly transparency reports (financials, development, governance)
  • Public off-chain explorer (SHA-256 audit trails)
  • Open-source reward calculation formulas
  • Community watchdog program (early adopters monitor system)

7.3 Governance Transition

  • Phase 1: Founder-led (current - Q3 2027)
  • Phase 2: Advisory Board + community voting (Q3 2027 - Q4 2029)
  • Phase 3: Full DAO governance (2029+)
  • Quarterly legal reviews of all content
  • MiCA compliance monitoring
  • Consumer protection under EU Directive 2011/83/EU
  • GDPR-compliant data protection

8. Acknowledgment

By using the Dorsium platform, you acknowledge that:

  • You have read and understood this Risk Disclosure
  • You accept all risks outlined in this document
  • You will not hold Dorsium liable for losses due to these risks
  • You have sought professional advice (legal, financial, tax) if needed
  • You understand DORS tokens are utility tokens, NOT investments

9. Contact

For questions about risks or clarification, contact:

Email: hello@dorsium.com
Website: dorsium.com/contact

Dorsium - Trust. Honor. Security.