RISKS

Dragon Kart is currently in the initial development stages and there are a variety of unforeseeable risks. You acknowledge and agree that there are numerous risks associated with acquiring $KART, hold

IF YOU DECIDE TO ACQUIRE $KART OR PARTICIPATE IN DRAGON KART, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:

• Uncertain Regulations and Enforcement Actions: The regulatory status of Dragon Kart, $KART and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of digital assets has become a primary target of regulation in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including $KART and/or Dragon Kart. Regulatory actions could negatively impact $KART and/or Dragon Kart in various ways. The Company, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction.

• Inadequate disclosure of information: As at the date hereof, Dragon Kart is still under development and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this whitepaper contains the most current information relating to Dragon Kart, it is not absolutely complete and may still be adjusted and updated by the Dragon Kart team from time to time. The Dragon Kart team has neither the ability nor obligation to keep holders of $KART informed of every detail (including development progress and expected milestones) regarding the project to develop Dragon Kart, hence insufficient information disclosure is inevitable and reasonable.

• Competitors: Various types of decentralised applications, games and networks are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative networks could be established that utilise the same or similar code and protocol underlying $KART and/or Dragon Kart and attempt to re-create similar facilities. Dragon Kart may be required to compete with these alternative networks, which could negatively impact $KART and/or Dragon Kart.

• Loss of Talent: The development of Dragon Kart greatly depends on the continued co-operation of the existing technical team and expert consultants, who are highly knowledgeable and experienced in their respective sectors. The loss of any member may adversely affect Dragon Kart or its future development. Further, stability and cohesion within the team is critical to the overall development of Dragon Kart. There is the possibility that conflict within the team and/or departure of core personnel may occur, resulting in negative influence on the project in the future.

• Failure to develop: There is the risk that the development of Dragon Kart will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency or $KART, unforeseen technical difficulties, and shortage of development funds for activities.

• Security weaknesses: Hackers or other malicious groups or organisations may attempt to interfere with $KART and/or Dragon Kart in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Company, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of $KART and/or Dragon Kart, which could negatively affect $KART and/or Dragon Kart. Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to $KART and/or Dragon Kart by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.

• Other risks: In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks (as more particularly set out in the Terms and Conditions) associated with your participation in Dragon Kart, as well as acquisition of, holding and use of $KART, including those that the Company or the Distributor cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Company, the Distributor, their respective affiliates, and the Dragon Kart team, as well as understand the overall framework, mission and vision for Dragon Kart prior to participating in the same and/or acquiring $KART.