I feel overjoyed to see such an informative terms. Regardless of reading the risks.
Explanation of Terms and Disclaimer
Important Disclaimer: DAO tokens do not represent or constitute an equity ownership stake, share, or equivalent in ANY public or private company, corporation, or other entity in any jurisdiction; DAO tokens are only for use in connection with The DAO under the terms of The DAO’s smart contract code and do not entitle any holder of DAO tokens to any additional rights with respect to any other corporation, company, or entity in any jurisdiction.
When you click the “I Accept” button or check box presented with the terms you are agreeing that you are taking part in The DAO’s Creation under the terms set forth in The DAO’s smart contract code at your own risk. If you are entering into The DAO’s Creation Phase for another entity or any third-party, such as the company you work for, you represent to The DAO, you warrant that you have legal authority to bind that entity to these terms as set forth in The DAO’s smart contract code.
By Creating DAO tokens through interaction with The DAO’s smart contract code, you expressly agree to all of the terms and conditions set forth in that code. If you do not understand or do not agree to those terms, you should not Create DAO tokens.
The use of The DAO’s smart contract code and the Creation of DAO tokens carries significant financial risk, including using experimental software. This document does not constitute a Prospectus of any sort, is not a solicitation for investment and does not pertain in any way to an offering of securities in any jurisdiction.
The DAO’s smart contract code governs the Creation of DAO tokens and supercede any public statements about The DAO’s Creation made by third parties or individuals associated with The DAO, past, present and future. The software code currently available at https://github.com/slockit/dao is the sole source for the terms under which DAO tokens may be created.
By interacting with The DAO’s smart contract code and Creating DAO tokens, you:
• represent and warrant that you have an understanding of the usage and intricacies of cryptographic tokens, such as ETH (ether) and other blockchain-based software systems;
• represent and warrant that you are legally permitted to Create DAO tokens in your jurisdiction;
• represent and warrant that you waive your right to participate in a class action lawsuit or a classwide arbitration against any entity involved with the Creation of The DAO;
• represent and warrant that you take sole responsibility for any restrictions and risks associated with the Creation of DAO tokens as set forth below;
• represent and warrant that you are not exchanging cryptocurrencies for The DAO tokens for the purpose of speculative investment;
• represent and warrant that you are not exchanging DAO tokens for any illegal purpose within your jurisdiction;
• represent and warrant that you understand that The DAO’s Creation does not involve the purchase of shares or equivalent in any existing or future public or private company, corporation, or other entity in any jurisdiction;
• represent and warrant that you understand that there is no warranty whatsoever on DAO tokens, express or implied, to the extent permitted by law, and that DAO tokens are Created on an “as is” basis.
You further agree to accept sole risk for the Creation of DAO tokens. You also must recognize that The DAO’s smart contracts are continuously being developed and may undergo significant changes over time subject to the terms of such changes set forth in The DAO’s smart contract code at 0xbb9bc244d798123fde783fcc1c72d3bb8c189413, if the DAO Token Holders vote for it.
The Creation of DAO tokens carries with it significant risk. Prior to Creating DAO tokens, carefully consider the exemplary and non-exhaustive list of risks set forth below and, to the extent necessary, consult a lawyer, accountant, and/or tax professionals prior to Creating DAO tokens.
1. Risk of Security Weaknesses in The DAO’s Software
The DAO concept is both experimental in nature and unproven. There is a risk that, as an open source project, any contributor to The DAO’s software could introduce weaknesses or bugs into the DAO software, causing the loss of DAO tokens or ETH in one or more or even all of the DAO Token Holder’s accounts.
2. Risk of Weakness in the DAO underlying blockchain, and/or Ethereum Network
The DAO software is itself based on an unproven platform: the Ethereum blockchain. There is a risk that, as an open source project, any contributor to the Ethereum blockchain could introduce weaknesses or bugs into the Ethereum software, causing the loss of DAO tokens or ETH in one or more or even all of the DAO Token Holder’s accounts.
3. Risk of unforeseen attack vectors
The field of Digital Cryptography is very new and for this reason, there is a risk of unforeseen attack both in terms of the underlying cryptographic protocol that back the functioning of the DAO as well as 'game theory' related vectors which have not been documented to date. Both these vectors represent a risk that could lead the loss of DAO tokens or ETH in one or more or even all of the DAO Token Holder’s accounts.
4. Regulatory risks
Blockchain technology and Ethereum are allowing new forms of interactions between individuals and/or companies, some of them are still to be imagined and implemented. Like with the appearance of cryptocurrencies such as Bitcoin, it is very likely that specific regulations will be set in different jurisdictions targeting blockchain technology and more specifically DAOs. These regulations may or may not be DAO friendly and some might even forbid any relationships between an individual or company and a DAO.
No party involved with the Creation of The DAO makes any representations concerning the tax implications of the Creation of DAO tokens or the possession or use of DAO tokens. You bear the sole responsibility to determine if the Creation of DAO tokens or the potential appreciation or depreciation in the value of DAO tokens over time has tax implications for you in your home jurisdiction.
You Create DAO tokens with your own actions. To the extent permitted by law, Third Parties or Individuals associated with the Creation of The DAO are not liable for any tax liability associated with or arising from the Creation of DAO tokens.
Forward looking statements
This document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as “outlook”, "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or comparable terminology and phrases or statements that certain actions, events or results "may", "could", "should", “shall”, "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy. By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond anyone's control.
Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those discussed in the “Risks and uncertainties” of this document. None of the third parties provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document. All third parties involved with the DAO Creation and their affiliates expressly disclaim any intention, obligation or undertaking to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The making of this document does not constitute a recommendation regarding any securities.
Disclaimer of Warranties
THE USER EXPRESSLY AGREES THAT THE USER IS CREATING DAO TOKENS AT THE USER’S SOLE RISK AND THAT DAO TOKENS ARE CREATED ON AN "AS IS" BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF TITLE OR IMPLIED WARRANTIES, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE (EXCEPT ONLY TO THE EXTENT PROHIBITED UNDER APPLICABLE LAW WITH ANY LEGALLY REQUIRED WARRANTY PERIOD TO THE SHORTER OF THIRTY DAYS FROM FIRST USE OR THE MINIMUM PERIOD REQUIRED).
WITHOUT LIMITING THE FOREGOING, NONE OF THIRD PARTIES OR INDIVIDUALS ASSOCIATED WITH THE DAO CREATION WARRANT THAT THE PROCESS FOR PURCHASING DAO TOKENS WILL BE UNINTERRUPTED OR ERROR-FREE.
Limitations Waiver of Liability
YOU ACKNOWLEDGE AND AGREE THAT, TO THE FULLEST EXTENT PERMITTED BY ANY APPLICABLE LAW, YOU WILL NOT HOLD THIRD PARTIES OR INDIVIDUALS ASSOCIATED WITH THE DAO CREATION LIABLE FOR ANY AND ALL DAMAGES OR INJURY WHATSOEVER CAUSED BY OR RELATED TO USE OF, OR INABILITY TO USE, DAO TOKENS OR THE DAO PLATFORM UNDER ANY CAUSE OR ACTION WHATSOEVER OF ANY KIND IN ANY JURISDICTION, INCLUDING, WITHOUT LIMITATION, ACTIONS FOR BREACH OF WARRANTY, BREACH OF CONTRACT OR TORT (INCLUDING NEGLIGENCE) AND THAT NONE OF THE THIRD PARTIES OR INDIVIDUALS ASSOCIATED WITH THE DAO CREATION SHALL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING FOR LOSS OF PROFITS, GOODWILL OR DATA, IN ANY WAY WHATSOEVER ARISING OUT OF THE USE OF, OR INABILITY TO USE, OR CREATION OF, OR INABILITY TO CREATE, DAO TOKENS.
YOU FURTHER SPECIFICALLY ACKNOWLEDGE THAT THE THIRD PARTIES OR INDIVIDUALS ASSOCIATED WITH THE DAO CREATION ARE NOT LIABLE, AND YOU AGREE NOT TO SEEK TO HOLD ANY OF THE THIRD PARTIES OR INDIVIDUALS ASSOCIATED WITH THE DAO CREATION LIABLE, FOR THE CONDUCT OF THIRD PARTIES, INCLUDING OTHER CREATORS OF DAO TOKENS, AND THAT THE RISK OF CREATING AND USING DAO TOKENS RESTS ENTIRELY WITH YOU.
I hope whomever decides to host these tokens takes on the risk to back it up.
I'm excited for it to survive! I want it to challenge Bitcoin's developers