The X Layer ecosystem offers a dynamic environment for users to interact with decentralized applications (DApps), digital assets, and blockchain-based services. As part of Metax Technology Company Limited and its affiliates, X Layer provides tools and infrastructure designed to support innovation in the Web3 space. However, engaging with this ecosystem involves inherent risks that every user must understand before participating.
This Risk Disclosure Statement outlines the key considerations associated with using X Layer’s services—collectively referred to as the “Services.” By accessing or using these Services, you confirm that you have read, understood, and agreed to this disclosure, as well as all applicable terms and conditions, user agreements, policies, rules, and announcements published from time to time on official channels (collectively, the “User Agreements”). You agree to be legally bound by all such terms. If you do not accept this Risk Disclosure Statement or any of the User Agreements, you must refrain from using the Services.
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Understanding the Nature of Digital Asset Markets
Digital asset markets are highly volatile and speculative. Prices can fluctuate dramatically in short periods due to technical developments, regulatory changes, market sentiment, or broader economic factors. Some digital assets may lose all or most of their value unexpectedly. This volatility stems from the decentralized and unregulated nature of many blockchain projects, especially those in early development stages.
Engaging with digital assets requires a certain level of technical and financial literacy. Users must assess their risk tolerance and fully comprehend the implications of holding, transferring, or trading digital assets. X Layer does not provide investment advice, nor does it recommend any specific digital asset or strategy. It is your responsibility to conduct independent research and consult with legal, tax, or financial professionals before making any decisions.
No Advisory Relationship
X Layer is not your broker, dealer, fiduciary, agent, or consultant. No information provided through the Services should be interpreted as financial, tax, legal, trading, or business advice. The content available on X Layer information pages—including project descriptions, technical documentation, or ecosystem updates—is for general informational purposes only.
You acknowledge that X Layer makes no representations or warranties regarding the accuracy, completeness, or reliability of any information provided. None of the materials constitute an offer to sell or a solicitation to buy securities or regulated financial instruments. Furthermore, X Layer does not endorse any third-party products or services accessible via its platform.
Third-Party Projects and DApp Interactions
Many experiences within the X Layer ecosystem are powered by third-party decentralized applications (DApps) and startup projects. These entities operate independently, and your interactions with them are governed by their own terms of service, privacy policies, and operational frameworks.
X Layer has no control over these third-party platforms and cannot guarantee their functionality, security, or legitimacy. Once you connect your wallet or engage with a DApp, you are subject to that platform’s rules and risks. This includes potential smart contract vulnerabilities, phishing attacks, rug pulls, or administrative failures.
You agree that:
- You will perform due diligence before interacting with any project.
- You bear sole responsibility for losses arising from third-party services.
- X Layer is not liable for damages caused by external DApps or blockchain protocols.
- There is no agency, partnership, or joint venture formed between you, X Layer, and any third party.
Risks Associated With Early-Stage Blockchain Projects
Many projects within the X Layer ecosystem are in early stages of development. These startups may face significant challenges related to:
- Technology performance: The underlying blockchain or smart contracts may contain bugs or design flaws.
- Adoption failure: A project may fail to attract users, developers, or liquidity providers.
- Market illiquidity: There may be no active trading market for certain digital assets, making it difficult or impossible to sell.
- Regulatory scrutiny: Governments may investigate or restrict blockchain initiatives, leading to shutdowns or asset freezes.
- Supply issues: Assets may already be sold out or no longer available for purchase.
In extreme cases, projects may collapse entirely due to mismanagement, fraud, or technical failure—resulting in total loss of investment.
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Legal and Regulatory Considerations
The legal status of digital assets varies widely across jurisdictions. Regulatory bodies may impose restrictions on the use, transfer, or taxation of digital assets at any time. Changes in laws or enforcement practices could impact the availability of Services in certain regions or affect the value of your holdings.
X Layer complies with applicable regulations but cannot predict future legislative actions. You are responsible for ensuring that your use of the Services complies with local laws. Accessing restricted services in prohibited jurisdictions may result in account limitations or legal consequences.
Tax Obligations
Tax treatment for digital asset transactions remains uncertain in many countries. It is your sole responsibility to determine whether taxes apply to your activities—including capital gains, income, or reporting obligations—and to file accordingly. X Layer does not provide tax advice and encourages users to consult qualified professionals.
Limitation of Liability and User Commitments
By using the Services, you make important legal commitments:
(a) You irrevocably waive all claims—known or unknown—against X Layer for any losses or damages resulting from your use of the Services, even if partially caused by X Layer’s negligence.
(b) You agree to indemnify X Layer against all liabilities, costs, damages, and expenses (including legal fees) arising from claims you or anyone acting through you may bring related to your use of the Services.
These provisions are intended to protect the integrity and sustainability of the ecosystem while emphasizing user autonomy and accountability.
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Frequently Asked Questions (FAQ)
Q: Is X Layer a financial advisor?
A: No. X Layer does not provide investment, tax, legal, or financial advice. All decisions regarding digital assets are yours alone.
Q: Can I recover funds lost in a DApp scam?
A: Unfortunately, transactions on blockchain networks are irreversible. Losses incurred through third-party DApps are not recoverable through X Layer.
Q: Are all projects on X Layer vetted for safety?
A: While X Layer curates ecosystem participants, it does not guarantee the security or viability of any project. Users must perform their own due diligence.
Q: What happens if a project I invested in gets shut down by regulators?
A: Regulatory actions are beyond X Layer’s control. Users bear full responsibility for understanding jurisdictional risks when engaging with global blockchain projects.
Q: Does X Layer insure my digital assets?
A: No. Unlike traditional financial institutions, there is no insurance coverage for digital asset holdings on decentralized platforms.
Q: How can I stay safe while exploring the X Layer ecosystem?
A: Use trusted wallets, verify contract addresses manually, avoid sharing private keys, and only interact with well-documented and community-vetted projects.
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