Common use of Risks associated with taxation Clause in Contracts

Risks associated with taxation. The tax treatment of an investment in Digital Payment Tokens and/or Security Tokens is uncertain and varies as between jurisdictions. They may be considered assets in certain jurisdictions and currency in others. Direct and indirect taxes such as income or capital gains, stamp duty, sales, goods and services, or value-added taxes may be imposed on transactions in Digital Payment Tokens and/or Security Tokens. Additionally, foreign tax authorities or other regulators may require banks, custodians or exchanges to report details on an investor’s holdings and, in some cases, require banks, custodians or exchanges to withhold taxes on investments on behalf of investors, to be paid to foreign tax authorities. Investors are recommended to seek specific tax advice to understand the tax treatment of their investments in Digital Payment Tokens and/or Security Tokens.