Responsible Risk Disclosure Policy - Wasabi

This document provides you with information about the risks associated with the assets in which you may invest using the interface Wasabi Systems Inc. provides when interacting with this website.

Wasabi is a decentralized peer-to-peer NFT Options Protocol, designed for trading. The platform provides access to a decentralized protocol that creates an ecosystem where the participants benefit in different ways, interact with the platform and transact using smart contracts (“Smart Contracts”). Your use of the Wasabi platform involves various risks, including, but not limited to, losses while digital assets are being supplied to the platform and losses due to the fluctuation of prices of tokens whenever used in a trading pair or in an NFT Options contract. Before using the Wasabi platform, you should review the relevant docs.wasabi.xyz to make sure you understand how Wasabi works. You are responsible for doing your own diligence on those interfaces to understand the fees and risks they present.

Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for FIAT currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear.

Regulatory Landscape

Cryptocurrencies currently face an uncertain regulatory landscape in many jurisdictions. In addition, many cryptocurrency derivatives are regulated by the provisions of national and supra-national (i.e. EU) securities legislation; moreover, some state securities regulators have cautioned that many initial coin offerings are likely to fall within the definition of a security and subject to their respective securities laws. One or more jurisdictions may, in the future, adopt laws, regulations or directives that affect cryptocurrency networks and their users. Such laws, regulations or directives may impact the price of cryptocurrencies and their acceptance by users, merchants and service providers.

Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of cryptocurrency.

Purchasing cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.

Investors should conduct extensive research into the legitimacy of each individual cryptocurrency, including its platform, before investing. The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the cryptocurrency’s blockchain or other underlying technology. Some cryptocurrency transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.

Cryptocurrency trading requires knowledge of cryptocurrency markets. In attempting to profit through cryptocurrency trading, you must compete with traders worldwide. You should have appropriate knowledge and experience before engaging in substantial cryptocurrency trading.

Any individual cryptocurrency may change or otherwise cease to operate as expected due to changes made to its underlying technology, changes made using its underlying technology, or changes resulting from an attack. These changes may include, without limitation, a "fork," a "rollback," an "airdrop," or a "bootstrap." Such changes may dilute the value of an existing cryptocurrency position and/or distribute the value of an existing cryptocurrency position to another cryptocurrency.

Blockchain Risks

Since blockchain is an independent public peer-to peer network and is not controlled in any way or manner by Wasabi Systems Inc., and we shall not be responsible for any failure and/or mistake and/or error and/or breach which shall occur in the blockchain ecosystem or in any other networks in which tokens may be used and/or traded. You will be bound and subject to any change and/or amendments in the blockchain system and subject to any applicable law which may apply to the blockchain. We make no representation or warranty of any kind, express or implied, statutory or otherwise, regarding the blockchain functionality nor for any breach of security in the blockchain.

Technology

The relatively new and rapidly evolving technology underlying cryptocurrencies introduces unique risks. For example, a unique private key is required to access, use or transfer a cryptocurrency on a blockchain or distributed ledger. The loss, theft or destruction of a private key may result in an irreversible loss of your cryptocurrency associated with this private key. The ability to participate in forks could also have implications for investors. For example, a market participant holding a cryptocurrency position through a cryptocurrency exchange may be adversely impacted if the exchange does not allow its customers to participate in a fork that creates a new product.

The security of the Wasabi ecosystem, and associated core components, is a top priority for Wasabi Systems Inc.. The network is secured by the blockchain technology and provides valuable services for trading. Our mission is to become the go-to place for market transactions at internet scale, and the highest level of security is a mandatory prerequisite.

The security researcher community regularly makes valuable contributions to the security of organizations and the broader Internet, and Wasabi Systems Inc. recognizes that fostering a close relationship with the community will help improve the security of the Wasabi ecosystem. So, if you have information about a vulnerability in the Wasabi ecosystem and associated components, we want to hear from you.

Cybersecurity

The cybersecurity risks of cryptocurrencies and related “wallets” or spot exchanges include hacking vulnerabilities and a risk that publicly distributed ledgers may not be immutable. A cybersecurity event could result in a substantial, immediate and irreversible loss for market participants that trade cryptocurrencies. Even a minor cybersecurity event in a cryptocurrency is likely to result in downward price pressure on that product and potentially other cryptocurrencies.

Access risks

There are a series of inherent risks with the use of the mobile and/or web-based trading technology such as latency in the prices provided, and other issues that are a result of connectivity (including, without limitation, the use of mobile networks). Prices displayed on the trading platform are solely an indication of the executable rates and may not reflect the actual executed or executable price of an order.

The platform may utilize public communication network circuits for the transmission of messages. Wasabi Systems Inc. shall not be liable for any and all circumstances in which you experience a delay in price quotation or an inability to trade caused by network transmission problems or restrictions or any other problems outside our direct control, which include but are not limited to the strength of the mobile signal, network latency, or any other issues that may arise between you and any internet service provider, phone service provider or any other service provider. Please note further that some of the features available on the trading platform may not be available on any mobile application.

Future Wasabi Systems Inc. applications may require Users to download and install updates to the application or to their device’s operating system as such updates are made available. Failure to do so might lead to certain parts of the Services (including trading functions) becoming inaccessible to Members until such update has been successfully downloaded and installed. Performance issues and security risks may arise if Wasabi mobile applications are used on devices with customized or otherwise non-standard operating software or as a result of other software installed on such devices.

Reporting a Security Issue

In case of any security issue is identified, you are required to send us an email to: info@wasabi.xyz

Well-written reports in English will have a higher chance of being accepted. What to include:

Reports that include proof of concept code will be more likely to be accepted
Reports that include only crash dumps or another automated tool output will most likely not be accepted
Reports that include products & services that are out of scope (see the Scope section below) will not be considered
Include how you found the bug, the impact, and any potential remediation
Any plans for public disclosure

What you may expect from us:

A timely response to your email (within 2 business days).
An open dialog to discuss issues.
Credit after the vulnerability has been validated and fixed.

Coordinated Responsible Disclosure Policy

We ask security researchers to keep vulnerabilities and communications around vulnerability submissions private and confidential until a patch is developed to protect the Wasabi Token and its users.

Please do:

Allow the Wasabi Systems Inc. team a reasonable amount of time to address security vulnerabilities
Avoid exploiting any vulnerabilities that you discover
Demonstrate good faith by not disrupting or degrading Wasabi Systems Inc. services, products & data

Wasabi Systems Inc. pledges not to initiate legal action against researchers as long as they adhere to this policy.

Responsible Disclosure Process

1. Once a security report is received, the Wasabi Systems Inc. team verifies the issue and establishes the potential threat

2. Patches to address the issues will be prepared and tested

3. Wasabi Systems Inc. updates the token and NFT technology right away

Out of scope

Scam & phishing attempts involving Wasabi Systems Inc. services
Lost or compromised secret phrases, keystore files or private keys
Physical vulnerabilities
Social Engineering attacks
Functional, UI, and UX bugs such as spelling mistakes
Descriptive error messages
HTTP error codes/pages

Project risk

AS DESCRIBED IN THE DOCUMENTATION, THE WASABI PLATFORM AND THE NON-CUSTODIAL SERVICES ARE PROVIDED "AS IS", AT YOUR OWN RISK, AND WITHOUT WARRANTIES OF ANY KIND. Although the company developed much of the initial code for the Wasabi platform, it does not actually provide, own, or control the platform, which is run by smart contracts deployed on the Blockchain. Upgrades and modifications to the protocol are managed in a community-driven way. No developer or entity involved in creating the Wasabi will be liable for any claims or damages whatsoever associated with your use, inability to use, or your interaction with other users of, the Wasabi, including any direct, indirect, incidental, special, exemplary, punitive or consequential damages, or loss of profits, cryptocurrencies, tokens, NFTs or anything else of value.

Risks Relating to Digital Assets

The price and value of any Digital Asset can fluctuate and may fall against your interest. An individual Digital Asset product may experience downward price movements and may under some circumstances even become valueless. Investing in Digital Assets can be a high-risk activity. They are highly volatile and can result in significant losses in a short period of time. You should not invest more than you are willing to lose. You should only invest what you can afford to lose. You should also do your own research and consult a financial adviser before investing in digital assets.

The information contained on our platform is provided for general informational purposes only and should not be considered investment advice. The content on our platform does not constitute a solicitation to purchase or an offer to sell any Digital Asset.

Digital Assets are not legal tender and are not backed by the government, or by commodities such as gold or silver. There is no central bank that can take corrective measure to protect the value of any cryptocurrency or NFT in a crisis. As previously stated, Cryptocurrencies and NFTs are autonomous and largely unregulated on worldwide networks. Traders put their trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity.

Transactions in Digital Assets may be irreversible, and thus, losses due to accidental transactions may not be recoverable.

The value of Digital Assets in general is derived from the continued willingness of market participants to exchange fiat currency or Digital Assets for Digital Assets, which may result in the potential for permanent and total loss of value of a particular Digital Asset should the market for that Digital Asset disappear;

Trading of Digital Assets is susceptible to irrational (or rational) bubbles or loss of confidence, which could collapse demand relative to supply.

Risks Relating to Derivatives, Margin and Security/Digital Asset Borrowing

Investing in derivatives, margin, and security/Digital Asset borrowing products involves a high degree of risk and may not be suitable for all investors. The leveraged nature of these products magnifies the potential for gains and losses, and you may lose more than your initial investment. Market conditions can rapidly impact the value of these products, leading to high volatility and large losses. Additionally, these products may be subject to margin calls, which require the deposit of additional funds or securities in order to maintain your positions. The value of digital assets is highly speculative, and their prices can fluctuate widely and rapidly, leading to large losses. You should carefully consider your investment objectives and risk tolerance before investing in these products, and seek professional advice as necessary

The risk of loss in financing a transaction by deposit of collateral may be significant. You may sustain losses in excess of your Digital Assets deposited as collateral. You may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposit or interest payment is not made within the prescribed time, your collateral or positions may be liquidated at a loss, without prior notification to you.

Borrowing securities and/or Digital Assets from the Company requires you to provide a specific amount of collateral. The company may demand additional collateral if your current deposit is not sufficient to cover the market value of the borrowed assets. Failure to provide the requested deposit within the given time frame may result in the company repurchasing the borrowed securities and/or Digital Assets without prior notice. Lending your securities and/or digital assets to the company means temporarily surrendering ownership rights, but you retain the right to receive equivalent assets in return.

Contact Us

Get in touch with us at info@wasabi.xyz . Whether you want to submit an issue, a recommendation or have security related topics to bring up, the company is happy to hear from you.

In order to protect the Wasabi ecosystem, it is requested that you not post or share any information about a potential vulnerability in any public setting until we have researched, responded to, and addressed the reported vulnerability and informed partners if needed.