risks_disclosure.html

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FIRSTBLOOD RISK DISCLOSURE DOCUMENT - <br />
RISKS ASSOCIATED WITH 1ST AND THE FIRSTBLOOD NETWORK
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Last Updated September 21, 2016
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<p style="font-weight: bold; text-decoration: underline;">This document does not constitute an offer or solicitation to sell shares or securities in FirstBlood Technologies, Inc. or any related or associated company. Any such offer or solicitation will be made only by means of a confidential offering memorandum and in accordance with the terms of all applicable securities and other laws. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly this document does not constitute investment advice or counsel or solicitation for investment in any security. This document does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities. FirstBlood Technologies, Inc. expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in this document, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.</p>

<p>FirstBlood Token, ("1ST"), is a cryptographic token used by the FirstBlood network, operated by FirstBlood Technologies, Inc. (the "Company").</p>

<p style="font-weight: bold; text-decoration: underline;">1ST IS NOT A SECURITY AND THIS IS NOT AN OFFER TO SELL A SECURITY.</p>

<p style="font-weight: bold; text-decoration: underline;">1ST IS NOT AN INVESTMENT AND SHOULD NOT BE PURCHASED AS AN INVESTMENT.</p>

<p style="font-weight: bold; text-decoration: underline;">Anyone purchasing 1ST certifies that they are doing so out of a desire to use or consume 1ST on the Firstblood network, to participate in the FirstBlood community and for the utility value of 1ST, and not for any speculative, investment or financial reasons.</p>

<p style="font-weight: bold; text-decoration: underline;">1ST is not a cryptocurrency.</p>

<p>At the time of this writing, 1ST (i) cannot be exchanged for goods or services, (ii) has no known uses outside the FirstBlood network, and (iii) cannot be traded on any known exchanges.</p>

<p style="font-weight: bold; text-decoration: underline;">1ST is not an investment.</p>

<p>There is no guarantee – <span style="text-decoration: underline;">indeed there is no reason to believe</span> – that the 1ST you purchase will increase in value. <span style="font-weight: bold; text-decoration: underline;">1ST MAY – AND LIKELY WILL – DECREASE IN VALUE.</span> Those who do not actually use their 1ST honestly and fairly will lose their 1ST to those who do.</p>

<p style="font-weight: bold; text-decoration: underline;">If you purchase 1ST, you agree and certify that you are purchasing for your own consumption and use on the FirstBlood network, and NOT AS AN INVESTMENT OR SECURITY.</p>

<p style="font-weight: bold; text-decoration: underline;">1ST is not evidence of ownership or right to control.</p>

<p>Controlling 1ST does not grant its controller ownership or equity in the Company, or the FirstBlood network. 1ST does not grant any right to participate in the control, direction or decision-making of the Company or the FirstBlood Network.</p>

<p style="font-weight: bold; text-decoration: underline;">1) Risk of Losing Access to 1ST Due to Loss of Credentials</p>

<p>The purchaser’s 1ST may be associated with a FirstBlood account until they are distributed to the purchaser. The FirstBlood account can only be accessed with login credentials selected by the purchaser. The loss of these credentials will result in the loss of 1ST. Loss of credentials associated with any third party and or digital wallet containing and or controlling 1ST will result in loss of 1ST. Best practices dictate that purchasers safely store credentials in one or more backup locations geographically separated from the working location.</p>

<p style="font-weight: bold; text-decoration: underline;">2) Risks Associated with the Ethereum Protocol</p>

<p>1ST and the FirstBlood network are based upon the Ethereum protocol. As such, any malfunction, unintended function or unexpected functioning of the Ethereum protocol may cause the FirstBlood network or 1ST to malfunction or function in an unexpected or unintended manner. Ether, the native unit of account of the Ethereum Protocol may itself lose value in ways similar to 1ST, and also other ways. More information about the Ethereum protocol is available at http://www.ethereum.org.</p>

<p style="font-weight: bold; text-decoration: underline;">3) Risks Associated with Witnessing, Voting and Other Utility Uses on the FirstBlood Network</p>

<p>The purchaser may lose 1ST by carelessly or maliciously exercising any voting rights that may be associated with 1ST. Failing to vote as required by the FirstBlood network may result in a loss of 1ST. Voting for an outcome that is in the minority of the recorded votes may result in a loss of 1ST.</p>

<p style="font-weight: bold; text-decoration: underline;">4) Risks Associated with Purchaser Credentials</p>

<p>Any third party that gains access to the purchaser’s login credentials or private keys may be able to dispose of the purchaser’s 1ST. To minimize this risk, the purchaser should guard against unauthorized access to their electronic devices.</p>

<p style="font-weight: bold; text-decoration: underline;">5) Risk of Unfavorable Regulatory Action in One or More Jurisdictions</p>

<p>Blockchain technologies have been the subject of scrutiny by various regulatory bodies around the world. The functioning of the FirstBlood network and 1ST could be impacted by one or more regulatory inquiries or actions, including but not limited to restrictions on the use or possession of digital tokens like 1ST, which could impede or limit the development of the FirstBlood network.</p>

<p>Competitive eSports and exchanges of value based on the outcomes of competitive eSports matches, the core business of the Company, have been, and will likely continue to be, the subject of scrutiny by various regulatory bodies around the world. The legal ability for the Company to operate the FirstBlood network in some or all jurisdictions could be eliminated by future regulation or legal actions. In the event that it is not legal for the FirstBlood network to operate in a jurisdiction, the Company will cease operations in that jurisdiction. There is a serious risk that the Company will be unable to operate if regulation makes it difficult to do so.</p>

<p style="font-weight: bold; text-decoration: underline;">6) Risk of Alternative, Unofficial FirstBlood Networks</p>

<p>Following the presale and the development of the initial version of the 1ST platform and FirstBlood network, it is possible that alternative networks could be established, which utilize the same open source code and open source protocol underlying the FirstBlood network. The official FirstBlood network may compete with these alternative, unofficial 1ST-based networks, which could potentially negatively impact the FirstBlood network and 1ST.</p>

<p style="font-weight: bold; text-decoration: underline;">7) Risk of Insufficient Interest in the FirstBlood Network or Distributed Applications</p>

<p>It is possible that the FirstBlood network will not be used by a large number of businesses, individuals, and other organizations and that there will be limited public interest in the creation and development of distributed applications. Such a lack of interest could impact the development of the FirstBlood network and therefore the potential uses or value of 1ST.</p>

<p style="font-weight: bold; text-decoration: underline;">8) Risk that the FirstBlood Network, As Developed, Will Not Meet the Expectations of the Purchaser</p>

<p>The FirstBlood network is presently under development and may undergo significant changes before release. Any expectations regarding the form and functionality of 1ST or the FirstBlood network held by the purchaser may not be met upon release, for any number of reasons including a change in the design and implementation plans and execution of the FirstBlood network.</p>

<p style="font-weight: bold; text-decoration: underline;">9) Risk of Theft and Hacking</p>

<p>Hackers or other groups or organizations may attempt to interfere with the FirstBlood network or the availability of 1ST in any number of ways, including, but not limited to, denial of service attacks, Sybil attacks, spoofing, smurfing, malware attacks, or consensus-based attacks.</p>

<p style="font-weight: bold; text-decoration: underline;">10) Risk of Security Weaknesses in the 1ST network Core Infrastructure Software</p>

<p>The FirstBlood network consists of open-source software that is itself based on open-source software. There is a risk that the FirstBlood team, or other third parties may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructural elements of the FirstBlood network interfering with the use of or causing the loss of 1ST.</p>

<p style="font-weight: bold; text-decoration: underline;">11) Risk of Weaknesses or Exploitable Breakthroughs in the Field of Cryptography</p>

<p>Advances in cryptography, or technical advances such as the development of quantum computers, could present risks to cryptocurrencies and the FirstBlood platform, which could result in the theft or loss of 1ST.</p>

<p style="font-weight: bold; text-decoration: underline;">12) Risk of 1ST Mining Attacks</p>

<p>As with other decentralized cryptographic tokens and cryptocurrencies, the blockchain used for the FirstBlood network is susceptible to mining attacks, including but not limited, to double-spend attacks, majority mining power attacks, "selfish-mining" attacks, and race condition attacks. Any successful attacks present a risk to the FirstBlood network, expected proper execution and sequencing of FirstBlood markets, and expected proper execution and sequencing of Ethereum contract computations. Despite the efforts of the Company, the risk of known or novel mining attacks exists.</p>

<p style="font-weight: bold; text-decoration: underline;">13) Risk of Lack of Adoption or Use of the FirstBlood Network</p>

<p>While 1ST should not be viewed as an investment, it may potentially (but likely will not) have value over time. That value may be limited if the FirstBlood network lacks use and adoption. If this becomes the case, there may be few or no markets upon which to utilize 1ST, limiting the value of 1ST.</p>

<p style="font-weight: bold; text-decoration: underline;">14) Risk of an Unfavorable Fluctuation of Ethereum Ether ("ETH") and Other Currency Value</p>

<p>The FirstBlood team intends to use the proceeds of the 1ST presale to fund development of the FirstBlood network. The proceeds of the 1ST presale will be denominated in ETH, and converted into other cryptographic and fiat currencies. If the value of ETH or other currencies fluctuates unfavorably during or after the presale, the 1ST team may not be able to fund development, or may not be able to develop the 1ST network in the manner that it intended or promised.</p>

<p style="font-weight: bold; text-decoration: underline;">15) Risk of an Illiquid Market for 1ST</p>

<p>There are currently no exchanges upon which 1ST might trade. If ever exchanges do develop, they will likely be relatively new and subject to poorly-understood regulatory oversight. They may therefore be more exposed to fraud and failure than established, regulated exchanges for other products. To the extent that the exchanges representing a substantial portion of the volume in 1ST trading are involved in fraud or experience security failures or other operational issues, such exchanges’ failures may result in a reduction in the value or liquidity of 1ST.</p>

<p style="font-weight: bold; text-decoration: underline;">16) Risk of Uninsured Losses</p>

<p>Unlike bank accounts or accounts at some other financial institutions, funds held using the FirstBlood or Ethereum network are generally uninsured. In the event of loss or loss of value, there is no public insurer, such as the F.D.I.C., or private insurer, to offer recourse to the purchaser.</p>

<p style="font-weight: bold; text-decoration: underline;">17) Risk of Dissolution of the FirstBlood Project</p>

<p>It is possible that, due to any number of reasons, including without limitation, an unfavorable fluctuation in the value of Ether (or other cryptographic and fiat currencies), unfavorable fluctuation in the value of 1ST, the failure of business relationships, or competing intellectual property claims, the FirstBlood network may no longer be a viable business and the Company may dissolve or the FirstBlood network may fail to launch.</p>

<p style="font-weight: bold; text-decoration: underline;">18) Risk of Malfunction in the FirstBlood Network</p>

<p>It is possible that the FirstBlood network malfunctions in an unfavorable way, including, but not limited to, one that results in the loss of 1ST, confidential information, or personal data.</p>

<p style="font-weight: bold; text-decoration: underline;">19) Unanticipated Risks</p>

<p>Cryptocurrency and cryptographic tokens are a new and untested technology. In addition to the risks set forth here, there are risks that the Company cannot anticipate. Risks may further materialize as unanticipated combinations or variations of the risks set forth here.</p>