Blockchain & Network Risk Disclosure

1. Purpose of This Disclosure

1.1 Informational Purpose

The purpose of this Disclosure is to describe, in substantive detail, the material risks associated with the use of blockchain technology by the Zoryxon platform and to ensure that Users have the opportunity to evaluate those risks before engaging in any on-chain activity. The risks described herein are not exhaustive; additional risks may exist that are not currently foreseeable.

1.2 Mandatory Pre-Use Review

By initiating any on-chain transaction through the Services, the User confirms that the User has had the opportunity to review this Disclosure, has had the opportunity to consult with qualified legal, financial, and technical advisors, and accepts the risks described herein subject to the limitations and allocations of liability set forth in the Terms of Service and Disclaimers.

1.3 Relationship to Other Documents

This Disclosure supplements the Terms of Service, the Disclaimers, the Privacy Policy, the Asset Shield Terms, the Marketplace Terms, the API Terms, the AI Agent Trust Terms, the DMCA Policy, the Cookie Policy, the Acceptable Use Policy, and, where applicable, the Data Processing Agreement. In the event of any conflict between this Disclosure and any of the foregoing with respect to risk allocation, warranties, indemnification, or limitation of liability, the relevant operative agreement controls.

2. Definitions

The following capitalized terms have the meanings set forth below. Other capitalized terms have the meanings given to them in the Terms of Service or the relevant ancillary policy.

• "Blockchain" or "Distributed Ledger" means a cryptographically secured, append-only, replicated record of Transactions maintained by a decentralized network of independent Nodes pursuant to a Consensus Mechanism.
• "Smart Contract" means executable program code deployed to a Blockchain that runs deterministically when invoked and that produces On-Chain state changes.
• "Transaction" means a digitally signed instruction submitted to a Blockchain network for inclusion in a block.
• "Block Confirmation" means the inclusion of a Transaction in a block accepted by the network as part of the canonical chain. Some networks consider a Transaction final only after a configurable number of subsequent blocks.
• "Consensus Mechanism" means the protocol by which Nodes agree on the canonical state of a Blockchain, including proof-of-work, proof-of-stake, asynchronous Byzantine fault tolerance, and other algorithms.
• "Gas Fee" or "Network Fee" means the fee payable to Blockchain network validators for processing a Transaction. Such fees are denominated in the network's native unit and are determined by network conditions.
• "Wallet" means software, hardware, or another mechanism that stores Private Keys and enables a User to sign Transactions.
• "Private Key" means the secret cryptographic key used to produce Digital Signatures authorizing Transactions and actions associated with the corresponding Public Key.
• "Public Key" means the cryptographic key derived from a Private Key that is shared publicly and against which Digital Signatures are verified.
• "Digital Signature" means the cryptographic output produced by signing a message with a Private Key, used to evidence authenticity and authorization.
• "Hash" means the output of a one-way cryptographic function (including SHA-256 and perceptual hashing) that maps arbitrary input to a fixed-size value and that cannot be computationally reversed.
• "On-Chain" means stored, written, or executed on a Blockchain network, with the immutability and replication characteristics thereof. "Off-Chain" means stored or executed in any system other than a Blockchain network.
• "Layer 1" means a base-layer Blockchain protocol (such as Ethereum or Hedera). "Layer 2" means a protocol or network built on top of a Layer 1 to extend its capacity, throughput, or cost profile (such as Arbitrum One).
• "Node" means a participant in a Blockchain network that maintains a copy of the ledger and participates in consensus, validation, or relay.
• "Fork" means a divergence in a Blockchain's history, including soft forks (backward-compatible) and hard forks (backward-incompatible).
• "Finality" means the property by which a Transaction or block is treated as irreversibly part of the canonical ledger; finality may be probabilistic (proof-of-work) or deterministic (BFT-style protocols).
• "Immutability" means the property by which an On-Chain record, once finalized, cannot be modified or deleted.
• "UUPS Proxy" means the Universal Upgradeable Proxy Standard, a Smart Contract pattern that separates contract state from logic and permits authorized upgrades of the logic implementation.
• "Meta-Transaction" means a Transaction in which the Gas Fee is paid by a Relay on behalf of the originating User pursuant to a forwarding standard (such as ERC-2771).
• "Relay" means an entity (including, where applicable, Zoryxon) that submits Meta-Transactions to a Blockchain network on behalf of Users.
• "Non-Custodial" means an architecture in which Zoryxon does not hold, store, or have access to User Private Keys or other custody-bearing credentials.

3. Nature of Blockchain Technology

3.1 Decentralization and Independence

Blockchain networks are decentralized, globally distributed systems operated by independent Nodes under the rules of their respective Consensus Mechanisms. Zoryxon does not operate, control, or govern any Blockchain network. Zoryxon's role with respect to Blockchain networks is limited to that of a participant submitting Transactions and reading state.

3.2 Independent Validation

Transactions submitted through the Services are processed by independent validators, sequencers, or consensus participants of the relevant Blockchain network. Zoryxon cannot guarantee the inclusion, ordering, timing, or final outcome of any Transaction. Confirmation latency, fees, and the probability of inclusion depend on prevailing network conditions.

3.3 Emerging Technology

Blockchain technology is an emerging field. The technical, economic, legal, and regulatory status of Blockchain networks, Smart Contracts, and On-Chain records varies materially by jurisdiction and is subject to rapid change. Past performance, technical behavior, or regulatory treatment is not indicative of future outcomes.

4. Immutability and Irreversibility

4.1 Permanence of On-Chain Records

Data written to a Blockchain (including content hashes, trust attestations, agent identities, authorization records, audit log entries, Asset Shield configurations, and other artifacts produced by the Services) is permanent and cannot be modified, deleted, or reversed by Zoryxon, the User, or any third party.

4.2 No Undo

Users must understand and accept this immutability BEFORE initiating any On-Chain Transaction. There is no "undo" capability for Blockchain writes, and Zoryxon has no technical means to reverse a finalized Transaction.

4.3 Personal Data Considerations

Zoryxon writes only cryptographic Hashes and non-personal identifiers On-Chain. Such Hashes are one-way derivations and cannot, by computational means, be reversed to recover original content or personally identifiable information. Original content and personal data are stored Off-Chain and may be modified or deleted in accordance with the Privacy Policy, the Data Processing Agreement, and applicable data protection law. The interaction between Blockchain immutability and data subject rights is further addressed in the Privacy Policy and the Data Processing Agreement.

4.4 Erroneous Submissions

Erroneous On-Chain submissions, including incorrect content hashes, mistaken metadata references, or accidental Authorization Grants, cannot be corrected by mutating the original record. A supplementary corrective record may be appended to indicate the corrected state, but the original erroneous entry persists permanently in the ledger. Users shall implement appropriate review and confirmation procedures prior to submitting On-Chain Transactions.

5. Smart Contract Risks

5.1 No Guarantee of Correctness

Zoryxon's Smart Contracts are developed in accordance with industry best practices and are subject to extensive internal testing and review, including a comprehensive automated test suite. Notwithstanding such practices, no Smart Contract can be guaranteed to be free of vulnerabilities, defects, undocumented behavior, or unintended interactions.

5.2 Autonomous Execution

Smart Contracts execute autonomously based on their programmed logic. Once invoked, a Smart Contract proceeds according to its code and the inputs provided, without further human discretion, except through governance mechanisms expressly built into the contract. Outcomes of Smart Contract execution depend on inputs and on contract logic; Zoryxon does not retain discretionary authority to alter the result of an executed Transaction.

5.3 UUPS Proxy Upgradeability

Zoryxon employs the UUPS Proxy pattern, which permits authorized upgrades of contract logic while preserving storage and the contract's on-chain address. Upgrades may change how a Smart Contract behaves, including with respect to the processing of future Transactions. Zoryxon shall provide notice of material upgrades in accordance with the Terms of Service and, where applicable, the upgrade timelock and multisignature procedures associated with the relevant contract.

5.4 Composability and External Dependencies

Smart Contracts may interact with external systems, oracles, and other contracts. Vulnerabilities, outages, or unexpected behavior in third-party contracts, oracles, or libraries on which Zoryxon's contracts depend may affect the behavior or availability of Zoryxon's Smart Contracts.

5.5 Evolving Security Discipline

Formal verification, security auditing, and Smart Contract testing are evolving disciplines. Methods and tools considered current best practice as of the effective date of this Disclosure may prove insufficient against attack vectors discovered or developed in the future. Users acknowledge the residual risk inherent in Smart Contract systems.

6. Network Risks

6.1 Availability and Performance

Blockchain networks may experience downtime, congestion, or degraded performance, including sequencer failures on Layer 2 networks. During such periods, On-Chain operations made available through the Services (including trust attestations, marketplace Transactions, Agent registrations, audit logging, and Asset Shield operations) may be delayed, queued, or temporarily unavailable.

6.2 Congestion and Fees

Network congestion may significantly increase Gas Fees and confirmation times. Although Zoryxon sponsors Gas Fees for many operations through its Meta-Transaction Relay infrastructure, certain operations require Users to pay Network Fees directly. Network Fees are determined by network conditions and validators, are outside Zoryxon's control, and may change without notice.

6.3 Forks

Blockchain networks may undergo Forks. Hard Forks may create divergent chains and could affect the availability, integrity, ordering, or continuity of On-Chain records. Zoryxon shall use commercially reasonable efforts to support the canonical chain following any Fork, but cannot guarantee continuity across all Fork scenarios, recovery of state on non-canonical chains, or compatibility with replayed Transactions.

6.4 Consensus Failures and Reorganizations

In rare circumstances, Consensus Mechanisms may fail, experience temporary disagreement, or produce chain reorganizations. While the networks Zoryxon currently uses provide strong Finality guarantees, no consensus mechanism is theoretically immune to failure or to novel attacks (including, without limitation, 51% attacks, long-range attacks, validator collusion, or software bugs).

6.5 Regulatory Action

Governments and regulators may take action that restricts, prohibits, or otherwise affects the operation of Blockchain networks, Smart Contracts, or On-Chain records in particular jurisdictions. Regulatory action may result in suspension or modification of certain Services in affected jurisdictions.

7. Layer 2 and Multi-Chain Risks

7.1 Layer 2 Risk Profile

Zoryxon operates on Layer 2 networks. Layer 2 networks derive security from an underlying Layer 1 network but may have unique risk profiles, including:

• 7.1.1 bridge vulnerabilities, including risks associated with deposits, withdrawals, and cross-domain message-passing infrastructure;
• 7.1.2 sequencer centralization risks, including the risk of sequencer downtime, censorship, or compromise;
• 7.1.3 challenge windows or withdrawal delay periods that may limit the speed of asset withdrawal or state finalization;
• 7.1.4 data availability risks, including dependence on the underlying Layer 1 for data publication; and
• 7.1.5 fraud-proof or validity-proof system risks, depending on the specific Layer 2 design.

7.2 Multi-Chain Complexity

Operating across multiple Blockchain networks (which may include both Layer 1 and Layer 2 networks) introduces additional complexity, including:

• 7.2.1 differences in Finality semantics and confirmation timelines;
• 7.2.2 differences in fee structures and economic models;
• 7.2.3 the potential for cross-chain state inconsistencies or message-relay failures; and
• 7.2.4 dependence on the continued operation, governance, and protocol soundness of each supported network.

7.3 API Abstraction

Zoryxon's API and user interfaces abstract cross-chain complexity from end Users. This abstraction does not eliminate the underlying risks of multi-chain architecture; it shifts certain operational burdens from the User to the Services. Users acknowledge that ease of use should not be construed as elimination of risk.

8. Wallet and Key Management Risks

8.1 Non-Custodial Architecture

Zoryxon employs a Non-Custodial architecture. Users are solely responsible for the security and management of their own Wallets, Private Keys, and recovery materials. Zoryxon does not generate, hold, store, or have access to User Private Keys, seed phrases, or custody-bearing credentials.

8.2 Loss of Keys

Loss of a Private Key results in permanent and irrecoverable loss of the ability to sign Transactions from the corresponding Wallet, and consequently loss of access to On-Chain records and assets controlled exclusively by that Private Key. ZORYXON CANNOT RECOVER LOST PRIVATE KEYS OR SEED PHRASES.

8.3 Compromised Keys

Compromised Private Keys may permit unauthorized parties to execute Transactions or access On-Chain records associated with the corresponding Wallet. Zoryxon's Asset Shield system provides supplementary protections through dual-condition transfers requiring both a valid Digital Signature and a valid identity attestation, but those protections apply only to assets actively bound through Asset Shield and only when Asset Shield is properly configured by the User. Users must consult the Asset Shield Terms for the scope and limits of those protections.

8.4 User Security Responsibilities

Users are solely responsible for, without limitation:

• 8.4.1 securing the devices on which Wallets and signing keys are stored;
• 8.4.2 selecting reputable Wallet software and hardware;
• 8.4.3 maintaining secure, redundant, and geographically separated backups of recovery phrases or equivalent recovery materials;
• 8.4.4 protecting against phishing, social engineering, and malware; and
• 8.4.5 following security best practices applicable to digital asset and key management.

9. Meta-Transaction Relay Risks

9.1 Convenience Service

Zoryxon provides a Meta-Transaction Relay system (utilizing, among other standards, ERC-2771 and the Zoryxon Forwarder contract) that permits certain operations to be executed without Users paying Gas Fees directly. The availability of this system depends on Zoryxon maintaining funded Relay accounts and operational Relay infrastructure on each supported network.

9.2 Right to Modify or Discontinue

Zoryxon reserves the right to modify, limit, suspend, or discontinue Gas Fee sponsorship at any time. If the Relay system is unavailable, restricted, or discontinued for the relevant operation, Users may be required to pay Gas Fees directly to complete an On-Chain Transaction.

9.3 Same Finality and Immutability

Meta-Transactions, once included by the relevant Blockchain network, are subject to the same Finality and Immutability characteristics as directly submitted Transactions. Use of the Relay does not alter the risks described in Sections 4 and 6.

10. Cryptographic Risks

10.1 Dependence on Cryptographic Primitives

The security of Blockchain networks, Wallets, and Smart Contracts depends on the strength of the underlying cryptographic algorithms, including elliptic-curve digital signatures, Hash functions, and pseudorandom number generation. Advances in cryptanalysis, mathematics, or computing — including the development of sufficiently capable quantum computers — may eventually compromise current cryptographic standards.

10.2 Post-Quantum Measures

Zoryxon implements ML-DSA-65 (FIPS 204), a NIST-standardized post-quantum digital signature algorithm, as a supplementary security measure for selected attestations. No cryptographic system, including post-quantum schemes, can be guaranteed to remain secure indefinitely. Zoryxon shall, where reasonably feasible, update cryptographic primitives as standards evolve.

10.3 Network-Level Cryptography

The transition to post-quantum cryptography across the broader Blockchain ecosystem is in early stages. The underlying networks on which the Services operate have their own cryptographic dependencies (including account-level signing, consensus protocols, and cross-chain bridge cryptography) that are determined by network protocol developers and are outside Zoryxon's control.

11. OFAC and Sanctions Compliance

11.1 Screening

Zoryxon screens transactions and associated wallet addresses against the U.S. Office of Foreign Assets Control Specially Designated Nationals (OFAC SDN) list and other applicable sanctions lists, as required by U.S. law. Screening is configured to fail closed; in the event of screening service unavailability, affected operations may be denied until screening can be completed.

11.2 Effects of a Hit

Transactions involving sanctioned addresses or entities may be blocked, suspended, reversed (where technically possible at the platform layer; not at the Blockchain layer), reported to authorities, and accompanied by termination of the implicated User account. Users in jurisdictions subject to comprehensive U.S. sanctions may be permanently unable to access On-Chain records or platform functionality associated with their accounts.

11.3 Limitations of Screening

Sanctions screening is based on data and tooling available to Zoryxon and its sub-processors at the time of the Transaction. No screening system is guaranteed to be exhaustive, error-free, or instantaneously updated to reflect changes in sanctions designations. Users remain solely responsible for their own legal compliance, including with sanctions, export control, and anti-money-laundering law.

12. Economic and Market Risks

12.1 No Cryptocurrency Issuance

Zoryxon does not issue, offer, or transact in any cryptocurrency, token, coin, or decentralized-finance instrument. The Services do not constitute, and shall not be construed as, an offer or solicitation to purchase any security, commodity, or other regulated financial instrument.

12.2 Native-Token Volatility

The Blockchain networks on which the Services operate use native units (including ETH for Ethereum and Arbitrum, and HBAR for Hedera) that are subject to market volatility. Volatility in such units may affect Gas Fees and, indirectly, the cost of On-Chain operations and the economics of Zoryxon's Meta-Transaction Relay infrastructure.

12.3 USD-Fixed Pricing

Zoryxon adopts USD-fixed pricing for subscription and transaction fees in order to insulate Users from direct exposure to cryptocurrency volatility. Notwithstanding USD-fixed pricing, Zoryxon cannot fully eliminate exposure to underlying network economics, including the risk that sustained changes in Blockchain network costs may necessitate future adjustments to pricing or to the scope of gas-sponsored operations.

13. Third-Party Dependencies

13.1 Infrastructure Providers

Zoryxon depends on third-party infrastructure providers for, among other things, Blockchain access (RPC providers), data storage, hosting, payment processing, identity verification, and analytics. Outages, performance degradation, security incidents, changes in policy, or discontinuation of these services may affect the platform's ability to process On-Chain Transactions or otherwise deliver the Services.

13.2 Network Governance

Zoryxon does not control the development roadmap, governance decisions, protocol upgrades, validator participation, or operational practices of any Blockchain network or third-party service provider. Decisions made by such networks or providers may affect the Services and the experience of Users.

13.3 No Endorsement

Zoryxon's use of any particular network, RPC provider, payment processor, or identity provider shall not be construed as an endorsement of such party or as a representation regarding the suitability, security, or future availability of such party's services.

14. Regulatory Uncertainty

14.1 Evolving Landscape

The legal and regulatory landscape for Blockchain technology is evolving rapidly across jurisdictions. Future laws, regulations, judicial decisions, executive orders, or enforcement actions may:

• 14.1.1 restrict or prohibit certain uses of Blockchain technology;
• 14.1.2 impose new compliance, registration, disclosure, or licensing requirements;
• 14.1.3 affect the enforceability or legal recognition of On-Chain records, Smart Contracts, or Digital Signatures;
• 14.1.4 create new liabilities for Blockchain platform providers, intermediaries, validators, or Users; or
• 14.1.5 require modifications to the Services or the discontinuation of certain features in particular jurisdictions.

14.2 Zoryxon's Compliance Efforts

Zoryxon monitors regulatory developments and uses commercially reasonable efforts to maintain compliance with applicable law. Zoryxon makes no representation or warranty that the Services comply, or will continue to comply, with all current or future laws or regulations in all jurisdictions.

14.3 User Compliance Responsibility

Users are solely responsible for determining and complying with all laws and regulations applicable to their use of the Services in their own jurisdiction and in any jurisdiction in which their activity has a nexus.

15. No Investment, Financial, or Legal Advice

Nothing in this Disclosure, on the Zoryxon platform, or in any communication from Zoryxon constitutes investment, financial, accounting, tax, or legal advice. The Services are technical infrastructure. Users should consult qualified, licensed professionals before making decisions related to Blockchain technology, digital assets, intellectual property, regulatory compliance, or the application of the Services to the User's circumstances.

16. Acknowledgment of Risks

16.1 User Acknowledgment

By initiating any On-Chain Transaction or otherwise using the On-Chain features of the Services, the User acknowledges and agrees that:

• 16.1.1 the User has had the opportunity to read and understand this Disclosure;
• 16.1.2 the User accepts the risks described herein, including the risk of total loss of access to On-Chain records or assets associated with a lost or compromised Private Key;
• 16.1.3 the User has had the opportunity to consult with qualified legal, financial, and technical advisors as the User deems appropriate; and
• 16.1.4 Zoryxon shall not be liable for losses arising from the inherent risks of Blockchain technology, subject to the allocations of liability and the mandatory-law carve-outs set forth in the Terms of Service, the Disclaimers, and other applicable Zoryxon policies.

16.2 No Modification of Other Agreements

This Disclosure is informational and does not modify the warranties, disclaimers, indemnification, or limitation-of-liability provisions of the Terms of Service, the Disclaimers, the Asset Shield Terms, the Marketplace Terms, the API Terms, the AI Agent Trust Terms, or other operative agreements. Such provisions remain in full force and effect.

16.3 Governing Law Reference

For the avoidance of doubt, this Disclosure is governed by, and shall be construed in accordance with, the laws of the State of Ohio, United States, consistent with the governing-law provisions of the Terms of Service.

16.4 Severability

If any provision of this Disclosure is held by a court or arbitrator of competent jurisdiction to be invalid, illegal, or unenforceable, that provision shall be enforced to the maximum extent permissible so as to effect the intent of the parties, and the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired.

17. Contact

Questions regarding this Disclosure may be directed to: