BUILDING THE DIGITAL ECONOMY Blackpaper v2.0 October 2020
ABSTRACT RedFOX Labs is an emerging tech venture builder based in Southeast Asia, that identifies and replicates successful pure-play business models for the local markets. RedFOX Labs works to build, launch, and scale high growth ventures in Southeast Asia. Its focus is to unlock the true market potential of the digital economy for high consumer demand services such as e-commerce, e-media (includes esports/gaming), e-travel, and ride-hailing/logistics. RedFOX Labs is incorporated as a joint-stock company in Vietnam which makes it eligible to apply for government tenders and contracts and provide blockchain solutions to government entities and corporations in Vietnam. RedFOX Labs deploys a DBOT (Design, Build, Operate, and Transfer) model using emerging technologies with a particular focus on esports, Blockchain, AI, AR/VR and Cloud Computing. Using a proprietary 9-point funnel system developed in-house, we process business ideas and concepts in a structured way that focuses heavily on data and removes any individual bias. In order to be competitive in our selected verticals, we require largely language agnostic, interoperable solutions that can scale rapidly without issues of congestion or security. The platforms we build on allow us to be competitive in a market that currently caters to less than 50% of its population and has 104 million residents in the 25 and 34 age range, which make up the majority of our core audience. RedFOX Labs is incorporated in the British Virgin Islands, a Joint Stock Company in Vietnam, and will have multiple companies in Singapore to ensure a presence in the region's business capital. 1
ABSTRACT 1 DISCLAIMER 3-4 REDFOX LABS 5 THE PROBLEM 6 THE SOLUTION 7 MARKET SIZE AND GROWTH POTENTIAL 8 VERTICALS OF FOCUS 9 E-COMMERCE 9 ONLINE MEDIA 10 ONLINE TRAVEL 11 RIDE-HAILING 12 REDFOX LABS ECOSYSTEM 13 CONCEPT TO DESIGN 13 TEAM STRUCTURE 14 PRODUCTS AND SERVICES 15 VENTURE BUILDER MODEL 15 COMPETITIVE ADVANTAGE 16 OUR VENTURES 17-20 THE RFOX TOKEN 21 TOKEN METRICS 21-22 ALLOCATION OF FUNDS 21-22 UTILITY OF RFOX 23 THE TOKEN ALLOCATION 25 APPENDICES 26 LEGAL 27 - 28 2
DISCLAIMER Issuer of Blackpaper The issuer of this Blackpaper is RedFOX Labs. Not Securities This Blackpaper does not describe an offer of securities. This material is provided by RedFOX Labs for informational purposes only and is not an offer or a solicitation to buy or sell securities or engage in financial services. No Investment Advice The products described are not offered for investment purposes. The information contained in this Blackpaper should not be taken as financial product advice and has been prepared as general information only. To the extent permitted by the applicable international Laws, regulations and, rules and those of the participant’s country of residence, RedFOX Labs shall not be liable for any losses that are indirect or otherwise, that may be in connection to the reliance of this Document. Please consult your legal, financial, or business professional for advice prior to participating in the RedFOX ecosystem. Prior to the participation in the RedFOX ecosystem you should carefully address the general risks involved with blockchain technology. Past Performance Past performance of RedFOX Labs should not be relied upon as indicative of future performance. Expiry Date This Blackpaper expires 12 months following this document’s publish date, which may be extended upon RedFOX Labs’ disclosure. Representation and warranties By accessing this document or any part thereof, you acknowledge, understand, and agree that: 1. RFOX Coins do not afford the participant to any rights or obligations in RedFOX Labs; 2. This document does not constitute a guarantee or promise to future prospects, features of the ecosystem and/or any form of a legally binding agreement between RedFOX Labs and the reader of this document; 3. You are permitted to access this document pursuant to the laws of your country of residence; 4. The redistribution or dissemination of this document, or any part or section thereof, is prohibited without the permission of RedFOX Labs; and 5. RedFOX Labs and/or its affiliates are not liable for any losses of any kind arising from the reliance of this document; and 6. Information in this document does not constitute legal, financial, business or tax advice. 3
Jurisdiction The Blackpaper has been prepared to comply with the requirements of the laws of British Virgin Island (“BVI”) and Vietnam. The distribution of this Blackpaper (whether electronically or otherwise) in jurisdictions outside of BVI and Vietnam may be restricted by law. Persons who come into possession of this Blackpaper should seek their own advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable laws. Unless otherwise agreed with RedFOX Labs, any person viewing this document shall by virtue be deemed to represent that they are not in a jurisdiction that does not permit the viewing of this Blackpaper and are not acting for the account or benefit of a person within such jurisdiction. Guarantee This document does not afford any guarantees or promises. All features referenced in this document or related documents are not guaranteed. This document does not guarantee that the services mentioned will be released. If a product is released there is no guarantee that the product will resemble or abide by the features listed in this document. This document should not be relied upon as a promise or representation of the future projections of RedFOX Labs. Photographs and Diagrams Diagrams and maps used in this Blackpaper are for illustrative purposes only. All information represented in the charts, graphs, and tables is based on information available as of the listed date. Distribution of Document The distribution or dissemination of this document or any part or section thereof is prohibited without the consent of RedFOX Labs. This Blackpaper may not be distributed to or relied upon by any persons in the United States. Blockchain General Risks Blockchain technology presents many inherent risks. Please ensure you are either well informed in relation to blockchain technology or have consulted a blockchain advisor prior to participating in the RedFOX cryptocurrency ecosystem. Updated Information Information relating to this Blackpaper may need to be updated from time to time. Any updated information about the offer not materially adverse to the product offering will be made available on RedFoxLabs.io. RedFOX may issue a supplementary Blackpaper to supplement any information not disclosed in this Blackpaper. Caution regarding statements and projections This Blackpaper starts with the end in mind, and we provide a series of statements and projections on how we believe we are best suited to get there, based on the current market and technological considerations. When thinking long term, many factors are subject to change or will no longer be relevant due to shifting factors beyond our control. Our primary focus is the success and longevity of the business and its entities and as such we take all reasonable steps to pivot, comply and adjust to ensure we meet our longer-term objectives and deliver with the end-user in mind. This document highlights the most logical and likely path at this time and is subject to significant change and also a risk. We always recommend you seek individual advice relating to your situation and circumstances. 4
RedFOX Labs was founded in July of 2018 with the intent to be Southeast Asia's first blockchain venture builder and to help with the mass adoption of blockchain and other emerging technologies. Previously holding the position of GM of Komodo between 2017-18, Ben Fairbank and co-founder Glen Pearce, identified that the gap between the core protocol layer of blockchain technology and the ability for the end consumer to interact, meant mass adoption was still some time away, yet the solutions it presented were too good not to capitalise on. Having been C-Level executives for companies such as Virgin Mobile, ChinaHR and Grab, means the team is well versed in running successful companies in the region and almost 2 decades of experience with multi-nationals such as Viva and Cell-C through Silah Gulf and Ooredoo. The team is also well versed in start-ups, recently aiding the Ooredoo Myanmar start-up and working for Southeast Asia’s largest unicorn, Grab. Through an advanced ecosystem of internet companies for the digital economy, RedFOX Labs will take steps to become a super dApp in Southeast Asia. 5
PROBLEM Source: Google & Temasek / Bain, e-Conomy SEA 2019 More than 50% of the population in Southeast Asia don’t have access to the internet economy. Many of the problems restricting access relate to not having bank accounts, credit cards, high transaction fees, or are simply the result of a lack of trust in digital payment options required for services such as Netflix. Many companies struggle to scale sustainably in these markets and fail to capitalise on the wider audience. These companies concentrate on the larger cities where people are likely to be more connected to the internet economy and the subsequent digital payment systems. The concentration of competition in major cities and the lack of engagement in the internet economy leaves multiple untapped opportunities across the region. 6
SOLUTION Identify Model Replicate Rapid Growth We take proven, successful, unicorn companies and replicate them for emerging markets. We utilise blockchain technology, AI, AR/VR and cloud computing to leverage solutions to the existing problems businesses face in the region. With the use of these platforms, we’re able to unlock a percentage of the market that remains under-served. After designing and building the MVP for each project, we assess product-market fit and hire an expert team accordingly. This team is entrusted to take the project to the next level of growth and scaling. We use a core team at RedFOX Labs to design and implement each company and then provide ongoing assistance through networking, advisory services, and by retaining board seats. Our focus is on digital inclusion and working toward a state where the end-users are completely unaware they are interacting with blockchain and the other emerging technologies we implement. 7
THE MARKET SIZE OF SOUTHEAST ASIA’S INTERNET ECONOMY 360 $100 104 MILLION BILLION USD MILLION 25-34 YO Internet Users in The Transaction Volume of Southeast Asia has Southeast Asia the Southeast Asian approximately 104 million Internet Economy people aged between 25 and 34 who are extremely tech thirsty Google & Temasek / Bain, e-Conomy SEA 2019 Despite the low participation rate of residents in the internet economy, there are 360 million internet users, 104 million residents aged 25 to 34, and a 2019 transactional market size of 99 Billion USD. This market is thriving and is set to experience unprecedented growth in the coming years. Google anticipates a market size of 303 Billion USD by 2025. MARKET GROWTH POTENTIAL 8
RedFOX Labs 4 VERTICALS OF FOCUS With E-Commerce doubling up year on year, RedFOX Labs has the opportunity to compete against local giants such as Lazada, Shopee, and Zilingo in this rapidly growing industry sector. Through the use of blockchain technology, RedFOX Labs can process faster and cheaper transactions, provide easier entry to the market for the under-served, and scale faster without the limitations of being bound by physical borders. RedFOX Labs will ascertain the business models with the least market saturation and lowest barriers to entry and look to apply blockchain technology as its key point of differentiation. With many existing models reliant heavily upon banking and credit card solutions, RedFOX Labs can leverage alternate technology to take these services to the far-reaching areas of both Vietnam and the greater Southeast Asian region. 9
RedFOX labs have countless opportunities in online media. RedFOX Labs already lends itself favorably to both gaming and streaming with the ability to leverage both of these verticals to grow rapidly in this emerging space. RedFOX Labs will soon launch its streaming and cashback application which will offer a variety of services and products within the Online Media sector to cater to ever-growing consumer demand. An increasingly lower cost of internet services coupled with increased options in online content has led to huge growth and heavy foreign investment in the sector. With anticipated growth to nearly triple over the next 5 years, there is plenty of room for RedFOX Labs to stamp its authority on this sector within the region. 10
The Online Travel vertical provides many opportunities to RedFOX Labs in both Vietnam and the region overall. In Vietnam 80% of the industry is dominated by foreign players such as Expedia. This is set to change as many of the local players transition away from traditional brick and mortar, to more heavily favored online models. The next 5 years are set to bring about more than 250% growth and are ripe for a locally based player to offer tailored solutions to a local population that is spending more of their disposable income on travel both domestically and also internationally. The region also provides a window of opportunity to appeal to and capture the more rural regions of Southeast Asia through creative blockchain solutions that will unlock a percentage of the dormant internet economy. 11
Although Ride-Hailing is a focus vertical for RedFOX Labs, it will not focus or intend to compete against local giants like Grab and Go Jek for ride-hailing. The industry itself requires a monopoly to be profitable and therefore the focus will be more on delivery and logistics which are a problem waiting to be solved in the majority of the Southeast Asian countries. With increasing traffic congestion and longer travel times, food and convenience goods delivery services have boomed regionally. Demand outweighs the supply and therefore multiple transport and delivery companies have emerged. None are more prominent than Grab who is now also venturing into payments and other sectors as it aims to become Asia’s next Super App. 12
RedFOX Labs ECOSYSTEM CONCEPT TO DESIGN The 4 industry sectors or verticals that we focus on are largely focused on the internet economy and include E-commerce, online travel, online media (including gaming and esports), and ride-hailing. RedFOX Labs employs a proprietary 9-step funnel process to determine which business models to replicate. The ‘RFOX Funnel’ process determines competition, market size, feasibility, market growth potential and determines if there is an actual advantage in using blockchain technology, AI, AR/VR or cloud computing. This model removes all emotion from the decision-making process and relies on hard data collected during the ‘market research’ stage. By using the ‘RFOX Funnel’ we greatly reduce the risk of replicating a business that is not successful. Once the business model to be replicated is chosen we work toward the release of our MVP and on the GTM (Go To Market). This includes hiring an expert local team, incorporation, legal structure, product development, testing, marketing, and defining target audience parameters. During this period the RedFOX Labs team will be on the ground and part of the build-out and execution. For the MVP release, the RedFOX Labs team will stay with the team and do post-launch reviews, product improvement, customer experience, and touch-point mapping, market analysis, design a revised 2-3 year business plan, and help the company to raise capital and expand and scale. At this point, the RedFOX Labs team will provide support and advisory functions from HQ and begin the planning of the next business. RedFOX Labs will remain majority equity holders in the businesses we build and occupy seats on the company board of directors. 13
TEAM STRUCTURE The RedFOX Labs team will remain lean and agile. Our main competitive advantage is that we have an ecosystem of service providers, vendors, and third-party providers, meaning we can scale up and down with ease and are not hampered by an extended capital expenditure burden. RedFOX Labs’ team will act as the strategists, designers, and implement the GTM and business plans. RedFOX Labs will have agreements in place to work with several professional service providers across multiple industries that can lend deeper experience to each of the businesses we build. As each business is likely to be different in its structure and design, we are better suited to ‘on-call’ experts rather than trying to up-skill the existing team in industry experience that may take years to develop. The core team of RedFOX Labs will train and develop new members to understand the DBOT (Design, Build, Operate, Transfer) model, which will allow us to set-up more businesses in the second and third years. The RedFOX Labs core team is experienced in running disruptive technology businesses and startups in Southeast Asia and for multinational companies globally. Our established network of contacts will allow us to grow and expand with expert assistance and guidance. 14
PRODUCTS AND SERVICES VENTURE BUILDER MODEL DEFINITION A venture builder is a company that designs, builds, and creates its own enterprises. Deploying a DBOT model we build and scale high growth internet companies for the emerging markets of Southeast Asia. As a venture builder, we are neither focused solely on products and technology development and we are neither an incubator nor an accelerator. Design, Build, Operate, Transfer (DBOT Model) We replicate unicorn business models from around the world with a particular focus on China and the USA. We introduce these models into the emerging Southeast Asian markets and improve their offerings and services by implementing blockchain technology, AI, AR/VR and cloud computing. 15
COMPETITIVE ADVANTAGE Our ‘unfair’ advantage is the ability to leverage our own ecosystem. We are able to provide each new business with advisory, legal structure and assistance, network introductions, and expertise to ensure a greater chance of success. We work with industry experts in each industry sector and ensure we don’t have ‘bakers fixing cars’. As a venture builder, RedFOX Labs is able to quickly deploy and scale businesses that also compliment the greater ecosystem. For example, it is reasonable to assume if we are hiring large numbers of staff in the Southeast Asian region, we would be able to spin up a recruitment company. This would turn a cost line in our operation into a profit centre by also providing these services to external parties. 16
OUR VENTURES RFOX GAMES RFOX Games is the official venture responsible for KOGs and other games being built out within the RFOX ecosystem and will be the official gaming division of RedFOX Labs. RFOX Games will have its own blackpaper and channels. The central RFOX token will be used across all games and platforms. RFOX Games will be registered in Singapore and service the Southeast Asian region and act as an HQ for all international business operations related to the gaming division. KOGs The first release under the RFOX Games banner is a gaming platform and ecosystem powered by NFTs (Non-Fungible Tokens) called KOGs, or Keys to Other Games. These are interoperable collectible game pieces that can be used between multiple games to unlock levels, weapons, and skins, to provide early and hidden access in games, and also act as keys to tournament entry. 17
Watch Trailer: https://youtu.be/Vzb-W9Zw_qc KOGs 1st Edition You can collect, trade, and sell KOGs — or pit them against other gamers in online tournaments. 18
E-COMMERCE STREAMING RedFOX Labs is preparing for the upcoming release of an Ecommerce streaming application that combines with a cashback system for users. Live Streaming Interactive Incentives ● View products live ● Interact with your host ● Earn rewards points ● See the actual quality ● Ask questions directly ● Win vouchers ● Watch demonstrations ● Get answers in real time ● Exclusive discounts E-commerce streaming has become one of the fastest-growing industries in China with revenues projected to hit 134 Billion USD by the end of 2020 in China alone. This industry sector is in its early stages in Southeast Asia with leading e-commerce and retailers such as Lazada and Shopee now starting to realise the potential and offer their own e-streaming services. RedFOX Labs will launch a new venture that combines e-commerce streaming with affiliate cashback, giving customers an average of 8% back on purchases. This app is in the final stages of development and RedFOX Labs is already an affiliate of Lazada which is the leading e-commerce platform in the region. RedFOX Labs will first target the high growth markets of Vietnam and the Philippines before looking to expand across the Southeast Asian region. 19
VIRTUAL SPACE RedFOX Labs will soon begin deployment of a virtual space focusing on Gaming/Esports, Art, and Music. NFTs will feature heavily in this virtual space including the ownership of the space itself, which will also be in the form of an NFT. Owners will receive payments from sales generated/rent within the venue. Artists, gamers and musicians can showcase their talents, perform events, compete and conduct sales of their products. RedFOX Labs will partner with high-profile companies to deliver and develop this business and it will play an important role within the greater ecosystem. RFOX will remain the main ‘underlying’ currency for the entire ecosystem and payments and payment gateways will be provided by our network partners (to be announced). DECENTRALAND HQ IN CRYPTO VALLEY As part of our commitment to Virtual Space, we will launch a virtual replica of our Vietnam RedFOX Labs HQ in Crypto Valley. This will provide an opportunity for people to ‘virtually visit’ our offices and will act as a learning lab for all things RFOX. From this venue, we will also host hackathons in conjunction with Coinsilium, Decentraland, and other network partners. Decentraland is the first decentralised world controlled by a DAO (decentralised autonomous organization), that allows its users, who are the owners, to decide their own future. RSK - IOV LABS ASIA RedFOX Labs has signed an agreement with a JV between stock listed Coinsilium and IOV Labs named IOV Labs ASIA, to develop a number of products and services for distribution across the Southeast Asian region. In addition, RedFOX Labs will utilise the products, services, and bridges created within the RSK ecosystem as well as leverage its solid stablecoin products to provide decentralised payment options across the RFOX ecosystem. 20
THE RFOX TOKEN TOKEN METRICS Token Ticker RFOX Technology ERC20 Start Date October 2020 Duration of Sale No Sale - Premined Token Snapshot (Date To Be Confirmed) Total Supply 2,000,000,000 RFOX Initial Circulating Supply Approx 67.5% of Total Supply Initial Circulating Supply 1,350,000,000. (67.5% of total supply) Minimum Holding Amount for the Swap. 1000 RFOX Coins RFOX TOKEN ALLOCATION Team and Advisors 250,000,000 locked ( 12.5% of total supply) Team and Advisors Vesting Period 12 months 25%, 18 months 25%, 2 years 50%. KOGs Reward-system, tournaments and staking 50,000,000 (2.5%) Ecosystem Development & Treasury 350,000,000 (17.5% of total supply) Ecosystem Development & Treasury 7M p.m for 50 months. Paid out 15th each month RFOX swap ratio 10:1 ERC-RFOX to RFOX 21
TOKEN ALLOCATION TOKEN RELEASE SCHEDULE 22
UTILITY OF RFOX TOKEN STARTING AS AN ERC20 RFOX will begin as an ERC20 Token and from there make use of bridges to other chains such as RSK, WAX, VERUS, and KMD. RFOX will leverage its industry partners RSK and IOV Labs Asia to offer stablecoins throughout the RFOX ecosystem. RedFOX Labs will work with multiple chains to create NFTs and financial products and services that all require the reduction of RFOX token supply in order to be generated. The RFOX token will power the entire RFOX ecosystem and act as a form of payment. It will be used for trading fees, to develop liquidity pools, and for the creation of NFTs. 23
RFOX GAMES RFOX will be the main form of payment for KOGs collector packs, trading fees, merchandise, and act as rewards for set holders and tournament participants. RFOX Games will publish its own blackpaper and tokenomics model prior to its game launch on WAX. VIRTUAL SPACE RFOX will be the main token powering the economy within the virtual space, however, we will work with our partners to ensure we have FIAT on-ramps and accept most major currencies. Fees, rent, commissions will all course through RFOX on the second layer. ECOSYSTEM TOKEN As RedFOX Labs may build companies and products on multiple chains, the RFOX token will assume the role of being the main currency for all of these projects. The RFOX token may take the form of either wrapped RFOX or a version of RFOX on that particular chain. The generation of new tokens for each project will be extracted from the main RFOX supply. STABLECOIN AND CURRENCY GENERATION As some markets and economies will require the use of a non-volatile currency, RFOX may choose to create stablecoins or currencies that are backed by RFOX tokens. These tokens will be taken out of circulating supply and give the stablecoins backing. 24
THE TOKEN ALLOCATION CIRCULATING SUPPLY A private and public sale was conducted in April of 2019, issuing 130 Million RFOX coins. As some vesting periods already matured, the carried forward circulating supply will be approx 135 million x 10 after the swap (67.5%). TEAM AND RFOX ADVISORS The team will reduce its holding prior to the swap from 100 million to 25 million, a 75% reduction, and relock the tokens as a sign of commitment and faith in the quality of work we aim to provide in the coming 24 months. These tokens will be released over 3 periods, starting at 1 year and ending at 24 months. The allocation which was previously 20% and has largely vested, will be reduced to 12.5% and released at intervals of 25% at 1 year, 25% at 18 months, and 50% at 2 years. This will mean the team and advisors allocation will now be 25 million x 10 after the swap (12.5%). ECOSYSTEM DEVELOPMENT AND TREASURY A total of 35 million RFOX x 10 after the swap (17.5%) will be set aside for development and treasury which will enable RFOX to develop tools and products faster and with increased efficiency. These funds will be released in monthly increments over 50 months. RFOX & KOGS HOLDERS RFOX holders will receive x 10 their current holdings in the new ERC20 Token. KOGs Holders will receive an allocation of RFOX which will be highlighted in the litepaper and subsequent releases. 25
APPENDICES Appendix A: Pre-swap Post-swap 26
RFOX RISKS By purchasing, owning, and using RFOX, you expressly acknowledge and assume the following risks: Risk of Losing Access to RFOX Due to Loss of Private Key(s), Custodial Error or Purchaser Error A private key, or a combination of private keys, is necessary to control and dispose of RFOX stored in your digital wallet or vault. Accordingly, loss of requisite private key(s) associated with your digital wallet or vault storing RFOX will result in loss of such RFOX. Moreover, any third party that gains access to such private key(s), including by gaining access to login credentials of a hosted wallet service you use, may be able to misappropriate you RFOX. Any errors or malfunctions caused by or otherwise related to the digital wallet or vault you choose to receive and store RFOX in, including your own failure to properly maintain or use such digital wallet or vault, may also result in the loss of your RFOX. Additionally, your failure to follow precisely the procedures set forth in for buying and receiving Coins, including, for instance, if you provide the wrong address for the receiving RFOX, or provides an address that is not Komodo compatible, may result in the loss of your coins. Risks Associated with used blockchain Protocol Because RFOX is currently based on the Komodo protocol, any malfunction, breakdown or abandonment of the Komodo protocol may have a material adverse effect on the platform or RFOX. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the RFOX and the platform, including the utility of RFOX for obtaining services, by rendering ineffective the cryptographic consensus mechanism that underpins the Komodo protocol. This applies to any future technology platform that RFOX decides to use in its sole discretion. Risk of Hacking and Security Weaknesses Hackers or other malicious groups or organizations may attempt to interfere with the platform or RFOX 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, because the platform is based on open-source software, there is a risk that a third party or a member of the Company team may intentionally or unintentionally introduce weaknesses into the core infrastructure of the platform, which could negatively affect the platform and the utility of RFOX for obtaining services. Risks Associated with Markets for RFOX If secondary trading of Tokens is facilitated by third-party exchanges, such exchanges may be relatively new and subject to little or no regulatory oversight, making them more susceptible to fraud or 27
manipulation. Furthermore, to the extent that third-parties do ascribe an external exchange value to RFOX (e.g., as denominated in a digital or fiat currency), such value may be extremely volatile. Risk of Uninsured Losses Unlike bank accounts or accounts at some other financial institutions, RFOX are uninsured unless you specifically obtain private insurance to insure them. Thus, in the event of loss or loss of utility value, there is no public insurer or private insurance arranged by Company, to offer recourse to you. Risks Associated with Uncertain Regulations and Enforcement Actions The regulatory status of RFOX and distributed ledger technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to such technology and its applications, including the RFOX ecosystem and RFOX. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement changes to law and regulation affecting distributed ledger technology and its applications, including the ecosystem and RFOX. Regulatory actions could negatively impact the platform and RFOX in various ways, including, for purposes of illustration only, through a determination that the purchase, sale and delivery of RFOX constitutes unlawful activity or that RFOX are a regulated instrument that require registration or licensing of those instruments or some or all of the parties involved in the purchase, sale and delivery thereof. The Company 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. Risks Arising from Taxation The tax characterization of RFOX is uncertain. You must seek your own tax advice in connection with purchasing RFOX, which may result in adverse tax consequences to you, including withholding taxes, income taxes and tax reporting requirements. Risk of Competing platforms It is possible that alternative platforms could be established that utilize the same opensource code and protocol underlying the platform and attempt to facilitate services that are materially similar to the RFOX services. Risks Arising from Lack of Governance Rights Because RFOX confer no governance rights of any kind with respect to the RFOX coin or the Company, all decisions involving the Company’s products or services within the ecosystem or the Company itself will be made by the Company at its sole discretion. These decisions could adversely affect the ecosystem and the utility of any RFOX you own, including their utility for obtaining services. 28