NFT and Blockchain Risk Disclosure

1. Purpose and acceptance

This Disclosure applies to users who browse NFT catalogue pages, request tokenization or verification, receive an NFT, interact with a blockchain record or use a physical product connected to an NFT.

Blockchain technology may support transparent and reviewable records, but it does not eliminate technical, legal, financial, operational or human risk.

By proceeding with an NFT-related Service or transaction, you acknowledge that you have considered the risks relevant to your own circumstances.

2. No investment or professional advice

MekaVerse NFT provides utility NFT tokenization, metadata, verification-record and physical-integration services.

Website content, metadata, verification status and project communications do not constitute:

• investment advice or a recommendation to acquire an NFT;
• financial, legal, tax or accounting advice;
• a prediction of future token value;
• a guarantee that a token will be transferable or saleable;
• a recommendation of a blockchain, wallet or marketplace;
• a legal opinion about copyright or ownership.

Users should obtain independent professional advice where their transaction, project or legal position requires it.

3. Loss of value

An NFT may have no stable or independently measurable market value. The price paid may be based on limited demand, subjective interest or temporary market conditions.

An NFT may lose value because of:

• reduced interest in the Asset, Creator or utility;
• increased supply of similar tokens;
• loss of access to promised benefits;
• marketplace removal or reduced visibility;
• changes in regulation or platform policy;
• failure of the underlying project or issuer;
• technical defects or unavailable metadata;
• reputational disputes or intellectual-property claims;
• general cryptoasset market volatility.

4. Liquidity and market risk

A liquid market may not exist for a particular NFT. A holder may be unable to sell the token at the desired price or at all.

Market risks include:

• very few potential buyers;
• large differences between advertised and achievable prices;
• artificial or manipulated trading activity;
• wash trading or misleading sales history;
• platform-specific restrictions;
• rapid changes in network fees;
• declining support for the relevant token standard;
• delisting or closure of an NFT marketplace.

Previous sale prices do not establish the present or future value of an NFT.

5. Wallet and custody risk

Access to an NFT normally depends on access to the wallet controlling the relevant blockchain address.

You may permanently lose access through:

• loss of a recovery phrase or private key;
• device failure without an appropriate backup;
• malware or remote-access attacks;
• phishing or fake wallet interfaces;
• compromised browser extensions;
• unauthorised approvals granted to a smart contract;
• failure of a custodial wallet provider;
• death or incapacity without an access plan.

You remain responsible for selecting an appropriate wallet, maintaining secure backups and reviewing every transaction request.

6. Irreversible transaction risk

Blockchain transactions are commonly irreversible after confirmation. There may be no central operator capable of cancelling or correcting a transaction.

Loss may result from:

• entering an incorrect wallet address;
• using an incompatible blockchain network;
• sending an NFT to a contract that cannot receive it;
• approving a fraudulent transaction;
• misunderstanding the transaction value or network fee;
• transferring a token before attached rights are confirmed;
• interacting with an unauthorised or malicious smart contract.

Always verify the destination address, network, token reference and transaction details before approval.

7. Smart contract risk

NFTs may rely on smart contracts that contain errors, vulnerabilities, administrative controls or unexpected behaviour.

Relevant risks include:

• coding errors and security vulnerabilities;
• unauthorised minting or transfer functions;
• upgradeable contracts controlled by another party;
• paused transfers or restricted token functionality;
• incorrect royalty or payment calculations;
• unverified or misleading contract source code;
• loss caused by connected protocols or external contracts;
• functions that differ from the public description.

A contract address appearing on a Website or explorer does not guarantee that the contract is secure, lawful or suitable.

8. Blockchain network risk

Blockchain networks operate through independent infrastructure and participants outside MekaVerse NFT’s complete control.

Network risks may include:

• congestion and delayed transaction confirmation;
• unexpected increases in transaction fees;
• network outages or degraded performance;
• protocol forks and competing transaction histories;
• validator, sequencer or bridge failures;
• consensus attacks or security incidents;
• changes to token standards or network rules;
• loss of ecosystem support;
• discontinuation of a blockchain or related service.

A token may continue to exist technically while becoming difficult to view, transfer or use.

9. Metadata and storage risk

The blockchain token and the underlying media or product information may be stored in different locations.

Metadata may refer to a centralised server, decentralised storage system, content identifier or another external location.

Risks include:

• broken metadata links;
• unavailable images, files or documents;
• hosting-provider closure;
• failure to preserve decentralised content;
• unauthorised metadata changes;
• incorrect hashes or references;
• cached outdated information;
• incompatible file formats;
• loss of access to encrypted content.

An NFT may remain in a wallet while the associated file, benefit or public record is no longer available.

10. Verification and provenance limitations

A MekaVerse NFT verification record may confirm the availability or consistency of reviewed token data, metadata, hashes, serial numbers and declarations.

Verification does not automatically prove:

• legal authorship of the Asset;
• copyright ownership;
• accuracy of every submitted declaration;
• authenticity of a physical item;
• validity of a licence or commercial promise;
• absence of competing ownership claims;
• that external metadata will remain available;
• that a token has financial value.

A blockchain timestamp shows that specified data existed or was recorded at a time. It does not independently prove who created the underlying work.

11. Intellectual-property risk

An NFT may be connected to content that is copied, disputed, unlicensed or unlawfully submitted.

Acquiring an NFT does not automatically transfer copyright, trademark rights, design rights, source files or commercial usage rights.

Possible risks include:

• false Creator or ownership claims;
• use of third-party content without permission;
• conflicting licences or assignments;
• joint-Creator disputes;
• trademark infringement;
• AI-assisted content with uncertain rights;
• marketplace removal following a complaint;
• legal restrictions on continued use of the Asset.

Review the applicable licence and Intellectual Property Policy before relying on NFT ownership.

12. Physical product and phygital risk

An NFT may be connected to a physical product through a QR code, NFC tag, serial number, label or certificate.

The identifier may confirm that a particular digital record was opened, but it does not independently prove that the physical product is genuine.

Phygital risks include:

• copied or replaced QR codes;
• cloned or removed NFC tags;
• counterfeit serial numbers;
• transfer of the token without the physical product;
• sale of the physical product without transferring the NFT;
• damage to a tamper-evident identifier;
• loss of product custody history;
• incorrect manufacturer or issuer declarations;
• redemption disputes;
• unavailable inspection or verification records.

High-value physical Assets may require inspection, tamper-evident controls, trusted issuance and documented chain-of-custody procedures.

13. Fraud, phishing and impersonation

NFT users are frequent targets of phishing, counterfeit websites, fake collections, impersonated support accounts and malicious links.

Common threats include:

• fake MekaVerse NFT pages or social accounts;
• false verification certificates;
• fraudulent wallet-connect requests;
• fake marketplace listings;
• counterfeit NFT collections;
• malicious token airdrops;
• messages requesting urgent wallet action;
• remote-access or screen-sharing scams;
• fake refund or recovery services.

14. Regulatory and legal risk

The legal and regulatory treatment of NFTs and cryptoassets can differ by jurisdiction and may change.

An NFT may be treated differently depending on its features, attached rights, marketing, payment structure and intended use.

Legal risks may include:

• new registration or authorisation requirements;
• restrictions on marketing cryptoassets;
• consumer-protection obligations;
• anti-money-laundering requirements;
• sanctions and geographic restrictions;
• securities or financial-services classification;
• rules affecting digital content and consumer cancellation;
• restrictions on data publication;
• conflicting laws in different countries.

Availability of a Service or NFT on the Website does not confirm that acquiring or using it is lawful in every jurisdiction.

15. Tax and reporting risk

Buying, selling, exchanging, gifting, receiving or using an NFT may create tax, accounting or reporting obligations.

Relevant issues may include:

• capital gains or losses;
• income received through token sales or royalties;
• business or trading income;
• valuation at the time of a transaction;
• VAT or other transaction taxes;
• record-keeping requirements;
• cross-border reporting;
• information supplied to tax authorities.

MekaVerse NFT does not calculate or report a user’s personal tax liability. Users should retain transaction and valuation records and obtain professional advice where required.

16. Privacy and public-ledger risk

Public blockchain transactions may reveal wallet addresses, transaction times, token holdings and transfer history.

Combining blockchain records with marketplace profiles, social accounts or project information may make it possible to identify a wallet holder.

Privacy risks include:

• permanent publication of personal information;
• linking several wallets to one person;
• profiling transaction behaviour;
• targeting holders for scams or theft;
• publication of confidential metadata;
• inability to erase independent blockchain records.

Do not include unnecessary personal or confidential information in public NFT metadata.

17. Third-party platform risk

NFTs may depend on independent marketplaces, wallets, explorers, hosting services, storage systems and payment providers.

A third party may:

• suspend or close an account;
• remove or hide an NFT listing;
• change its fees or terms;
• stop supporting a blockchain;
• experience a security incident;
• display inaccurate or outdated metadata;
• restrict access from certain countries;
• cease operating.

MekaVerse NFT does not control and cannot guarantee the performance or continued availability of independent services.

18. Operational and availability risk

The Website, verification pages or project infrastructure may be temporarily unavailable because of maintenance, technical faults, cyber incidents or third-party outages.

Operational risks may include:

• hosting or domain-name failure;
• database or backup failure;
• incorrect Website configuration;
• software bugs;
• loss of a third-party API connection;
• external attacks or excessive traffic;
• changes to browser or wallet compatibility;
• business interruption or supplier failure.

A temporary failure of a Website-controlled interface does not necessarily mean that the blockchain token has ceased to exist.

19. No compensation or insurance assumption

Users must not assume that an NFT purchase, wallet loss, blockchain transaction or third-party platform failure is covered by a statutory compensation scheme, deposit protection, chargeback right or insurance policy.

Availability of compensation depends on the relevant service, jurisdiction, transaction type and applicable legal framework.

Insurance may exclude cryptoassets, digital keys, smart-contract failures, market losses or unauthorised blockchain transactions.

Users should verify the protection available before sending funds, transferring an NFT or relying on a custodian.

20. Risk-reduction measures

No measure can eliminate every NFT or blockchain risk. Reasonable precautions may include:

• confirming the official Website domain;
• checking contract and token identifiers independently;
• reviewing the Asset, utility and applicable Licence;
• using a separate wallet for higher-risk interactions;
• testing transfers with a lower-value transaction where appropriate;
• using hardware-backed wallet protection;
• maintaining secure offline recovery backups;
• revoking unnecessary smart-contract approvals;
• checking metadata and storage references;
• keeping transaction, invoice and tax records;
• obtaining legal or technical advice for material transactions;
• independently inspecting high-value physical products.

A verification badge, marketplace listing or professional-looking website should never replace independent review.

21. Client and user responsibility

Clients are responsible for the accuracy and lawfulness of Project Materials, Creator declarations, utility descriptions, licensing terms and physical-product claims supplied to MekaVerse NFT.

Users are responsible for deciding whether to acquire, hold, transfer, redeem or rely on an NFT.

Before proceeding, users should understand:

• what the NFT represents;
• which rights are included and excluded;
• who provides the stated utility;
• how the Asset and metadata are stored;
• which blockchain and wallet are required;
• whether the token can be transferred;
• what happens if the Website or issuer becomes unavailable;
• the tax and legal consequences relevant to the user.

A user who does not understand these matters should not approve the transaction until appropriate advice has been obtained.

22. Contact

Questions about a MekaVerse NFT record, stated utility, metadata or project-specific risk may be submitted through:

Contact MekaVerse NFT

Include the relevant NFT reference, contract address, token ID or project page where available.

Do not submit private keys, recovery phrases, wallet passwords or authentication codes.