Common use of Material Risks Clause in Contracts

Material Risks. Recipient acknowledges the following material risks associated with virtual currency, including XRP: a. Virtual currency is not legal tender, is not backed by any government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections. b. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of virtual currency. c. Transactions in virtual currency may be irreversible and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable. d. Some virtual currency transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the transaction is initiated. e. The value of virtual currency may be derived from the continued willingness of market participants to exchange fiat currency for virtual currency, which may result in the potential for permanent and total loss of value of a particular virtual currency should the market for that virtual currency disappear. f. There is no assurance that a person who accepts a virtual currency as payment today will continue to do so in the future. g. The volatility and unpredictability of the price of virtual currency relative to fiat currency may result in significant loss over a short period of time. h. The nature of virtual currency may lead to an increased risk of fraud or cyber-attack. i. The nature of virtual currency means that any technological difficulties experienced by Ripple or Recipient may prevent the access or use of Recipient’s virtual currency.

Material Risks. Recipient acknowledges and assumes the following material risks associated with virtual currency, including XRP: a. Virtual currency is not legal tender, is not backed by any government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections. b. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of virtual currency. c. Transactions in virtual currency may be irreversible and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable. d. Some virtual currency transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the transaction is initiated. e. The value of virtual currency may be derived from the continued willingness of market participants to exchange fiat currency for virtual currency, which may result in the potential for permanent and total loss of value of a particular virtual currency should the market for that virtual currency disappear. f. There is no assurance that a person who accepts a virtual currency as payment today will continue to do so in the future. g. The volatility and unpredictability of the price of virtual currency relative to fiat currency may result in significant loss over a short period of time. h. The nature of virtual currency may lead to an increased risk of fraud or cyber-attack. i. The nature of virtual currency means that any technological difficulties experienced by Ripple or Recipient may prevent the access or use of Recipient’s virtual currency.