e-Pocket EPT token sale disclosure document



1. THE EPT TOKENS

By purchasing, holding and using EPT tokens, you expressly acknowledge that you are aware of the following:

The EPT tokens are not intended to be structured or sold as securities or commodities. Accordingly, none of the information presented by e-Pocket in respect of the EPT tokens is intended to form the basis for any interest payments or right to future profits decision, and no recommendations are intended. e-Pocket expressly disclaims any and all responsibility for any direct, indirect or consequential loss, damage, cost or expense of any kind whatsoever arising directly or indirectly from, or otherwise in connection with:

(i) reliance on any information contained herein;
(ii) any error, omission or inaccuracy in any such information; or
(iii) any action resulting from such information.

Ownership of EPT tokens carries no rights, express or implied, other than the right to use the EPT tokens as a mean to enable usage of and interaction with the e-Pocket Ecosystem, if successfully completed and deployed. In particular, you understand and accept that the EPT tokens do not represent or confer:

(i) any ownership right, share or security (or any equivalent right) in e- Pocket, any other company or the e-Pocket Ecosystem;
(ii) any future right to receive an interest or revenue share in e-Pocket, any other company or the e-Pocket Ecosystem;
(iii) any future right to receive an interest in any intellectual property rights relating to the e-Pocket Ecosystem; or
(iv) any other form of participation in or relating to e-Pocket or the e- Pocket Ecosystem, other than a right to participate in the e-Pocket Ecosystem (if and when it is deployed) for the duration of the time you hold such EPT token.


2. RISKS – TOKEN GENERATION EVENT AND EPT TOKENS

There are risks associated with the use of blockchain token technology for the EPT token sale process, and the purchase of EPT tokens generally.

WARNING: DO NOT PURCHASE EPT TOKENS IF YOU ARE NOT AN EXPERT IN DEALING WITH CRYPTOGRAPHIC TOKENS AND BLOCKCHAIN-BASED SOFTWARE SYSTEMS.

Individuals should only undertake purchases of EPT tokens or entities that have significant experience with, and understanding of, the usage and intricacies of cryptographic tokens, like Ether (ETH), and other blockchain-based software systems. You should have functional understanding of storage and transmission mechanisms associated with other cryptographic tokens. While e-Pocket may be available to assist in the purchase of EPT tokens during and after the sale, in no way is e-Pocket offering advice and e-Pocket will not be responsible for loss of ETH, EPT tokens or cash resulting from actions taken by, or omitted by you.

WARNING: THE PURCHASE OF EPT TOKENS ENTAILS A NUMBER OF RISKS.

The purchase of EPT tokens carries with it a number of risks. You should carefully consider all risks involved, including, but not limited to, those listed below and, to the extent necessary, consult an appropriate lawyer, accountant, or tax professional. If any of the following risks are unacceptable to you, then you should not purchase EPT tokens.

By purchasing EPT tokens, to the extent permitted by law, you acknowledge and agree that there are risks associated with purchasing, holding and using EPT tokens. You expressly acknowledge and assume all risks and agree not to hold any of e-Pocket or any related party of e-Pocket liable for any loss, damage, cost or expense (including or any special, incidental, or consequential damages) arising from, or in any way connected, to the sale of EPT tokens, including, but not limited to, any loss associated with the risks set out below. The order of the risks set out below is not intended to have any bearing on the likelihood of such risk arising, or importance of any such risk to any particular person.


3. RISKS ASSOCIATED WITH THE DEVELOPMENT AND MAINTENANCE OF THE E-POCKET PLATFORM

You recognise that the e-Pocket Platform is currently under development and may undergo significant changes before release and over time, including a change in direction at e-Pocket’s discretion. Although e-Pocket intends for EPT tokens and the e-Pocket Platform to follow the specifications, and intends to take commercially reasonable steps toward those objectives, e-Pocket may have to make changes to the specifications of EPT tokens or the e-Pocket Platform for any number of legitimate reasons including, but not limited to, a change in the design, implementation plans and execution of the implementation of the e-Pocket Platform for global release. This could create the risk that the e-Pocket Platformor EPT tokens, as further developed and maintained, may not meet your expectations at the time of purchase of the EPT token. Furthermore, despite e-Pocket’s efforts to develop and maintain the Platform, it is still possible that the e-Pocket Platform will experience malfunctions or otherwise fail to be adequately developed or maintained, which may negatively impact the e-Pocket Platform and EPT tokens.

You understand that while e-Pocket will make reasonable efforts to complete the e-Pocket Platform software for global release, due to circumstances beyond e-Pocket’s control it is possible that an official completed global version of the e-Pocket Platform may not be released globally, a limited release occurs, or in the worst case, a functioning operational global e-Pocket Platform may not be created at all.


4. RISK OF LOSING ACCESS TO EPT TOKEN DUE TO LOSS OF PRIVATE KEY(S)

EPT tokens may be stored in a wallet or vault, which can only be accessed with a password selected by you. The wallet will hold a private key, or a combination of private keys, required to control and dispose of the EPT tokens stored in your digital wallet or vault. Any loss of requisite private key(s) associated with your digital wallet or vault storing EPT tokens, will result in loss of such EPT tokens. If you do not maintain an accurate record of your private key or password used to access your private key, this may lead to the loss of your EPT tokens. You must safely store your password in one or more backup locations that are well separated from the primary location. If you do not have such experience or expertise, then you should not participate or purchase EPT tokens.

Any third party that gains access to your private key may be able to gain access to your EPT tokens. You must take care not to respond to any inquiry regarding your purchase of EPT tokens, including but not limited to, email requests purportedly coming from e-Pocket Website or a similar-looking domain.

The loss, destruction, loss of access or data loss relating to a private key by e-Pocket user to access a EPT token, may be irreversible and could adversely affect the value of the e-Pocket Platform and overall EPT tokens. e-Pocket disclaims all responsibility for loss, destruction, loss of access or data loss relating to a private key or its related EPT token.


5. RISKS ASSOCIATED WITH THE ETHEREUM AND BITCOIN PROTOCOL

As EPT token and the e-Pocket Platform are based on cryptocurrency protocols, any malfunction, unexpected functioning, forking, breakdown or abandonment of the Ethereum protocol may have a material adverse effect on EPT token or the Platform, including, but not limited to, impacting your ability to transfer or securely hold EPT token. Such impact could adversely affect the value of EPT token.

Advances in cryptography, or technical advances such as the development of quantum computing, could present risks to EPT token and the e-Pocket Platform by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum protocols.


6. RISKS OF MINING ATTACKS

As with other decentralized cryptographic tokens based on the Ethereum ERC-20 protocol, EPT tokens are susceptible to attacks by miners in the course of validating EPT token transactions on the Ethereum blockchain, 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 e-Pocket Platform and EPT Tokens, including, but not limited to, accurate execution, recording of transactions involving EPT tokens and expected proper payment operations.


7. RISK OF HACKING, CYBER THREATS AND SECURITY WEAKNESSES

Hackers, individuals, other malicious groups or organizations may attempt to interfere with the e-Pocket Platform or EPT tokens in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. As the e-Pocket Platform is based on open-source software, there is a risk that any party may intentionally or unintentionally introduce weaknesses into the core infrastructure of the Platform, which could negatively affect the e-Pocket Platform and EPT tokens. Hackers, individuals, other groups or organizations may attempt to steal the ETH cryptocurrency from the Token Generation Event, thus potentially impacting the ability of e-Pocket to promote the Platform. To account for this risk, e-Pocket has and will continue to implement comprehensive security precautions to safeguard the ETH obtained from the sale of EPT tokens. Multi-factor security measures will be taken to protect the cryptocurrency and EPT token, including, but not limited to, physical elements, multi-signature keys, splitting of funds, hot and cold wallet partitioning and diversification. Moreover, internal and external teams will conduct regular security audits of multi signature hot and cold wallets.

Advances in code cracking, or technical advances such as the development of quantum computers, could present risks to cryptographic tokens and the Platform, which could result in the theft or loss of EPT tokens. To the extent possible, e-Pocket intends to update the protocol underlying the e-Pocket Platform to account for any advances in cryptography and to incorporate additional security measures, but it cannot predict the future of cryptography or the success of any future security updates.


8. RISK ASSOCIATED WITH MARKETS FOR EPT TOKENS

The EPT tokens are intended to be used solely within the e-Pocket Platform for Services of peer-to-peer trading and as e-Pocket is using the ERC20 protocol, e- Pocket cannot control the actions of Purchasers of EPT tokens. Even if secondary trading of EPT tokens is facilitated by third party exchanges, such exchanges may be relatively new and subject to little or no regulatory oversight, making them more susceptible to fraud or manipulation.

Furthermore, to the extent that third parties do ascribe an external exchange value to EPT tokens (e.g. as denominated in a digital or fiat currency), such value may be extremely volatile and diminish to zero. If you chose to use EPT tokens on exchanges it is at your own risk.

Exchanges are independent of and not operated by e-Pocket.


9. RISK OF EXCHANGES

Cryptocurrency exchanges on which EPT tokens may trade may be relatively new and largely unregulated and may therefore be more exposed to fraud and failure than established regulated exchanges. To the extent that the crypto currency exchanges representing a substantial portion of the volume in EPT token trading are involved in fraud or experience security failures or other operational issues, such crypto currency exchange failures may result in a reduction in the price and can adversely affect the value of EPT tokens. A lack of stability in the crypto currency exchanges and the closure or temporary shutdown of crypto currency exchanges due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence in the e-Pocket Platform and result in greater volatility in the price of EPT tokens.


10. RISK OF UNINSURED AND TRANSACTION LOSSES

Unlike cash reserves held in bank accounts or accounts at some other financial institutions, EPT tokens are uninsured unless you specifically obtain private insurance to insure those held by you. In the event of loss or loss of utility value, there is no public insurer or private insurance arranged by e- Pocket to offer recourse to you.

EPT token transactions are irrevocable. If EPT tokens are stolen or incorrectly transferred, such transfer may be irreversible. As a result, any incorrectly executed EPT token transactions could adversely affect the value of EPT tokens. Cryptographic token transactions are not reversible without the consent and active participation of the recipient of the transaction or, in theory, control or consent of a majority of the processing power on the host blockchain platform. Once a transaction has been verified and recorded in a data block that is added to the blockchain, an incorrect transfer of a EPT token or a theft of a EPT token generally will not be reversible and there may be no compensation for any such transfer or theft. Such loss could adversely affect the value of EPT tokens generally.


11. RISKS ASSOCIATED WITH UNCERTAIN REGULATIONS, ENFORCEMENT ACTIONS AND GEOPOLITICAL EVENTS

The regulatory status of the cryptographic tokens, blockchain and distributed ledger technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to such technology and its applications, including the e-Pocket Platform and EPT tokens. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement changes to law and regulation affecting blockchain and distributed ledger technology and its applications, including the e-Pocket Platform and EPT tokens. Regulatory actions could negatively impact the e-Pocket Platform and EPT tokens in various ways, including, for purposes of illustration only, through a determination that EPT tokens are a regulated financial product or instrument that attracts registration or licensing requirements.

e-Pocket may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. The e-Pocket Platform and e-Pocket could be impacted by one or more regulatory enquiries or regulatory action, which could impede or limit the ability of e-Pocket to continue to develop the Platform.

Political or economic crises may motivate large-scale sales of EPT tokens, which could result in a reduction in the price and adversely affect the value of EPT token. Cryptographic tokens such as EPT tokens, which are relatively new, are subject to supply and demand forces based upon the desirability of an alternative, decentralised means of transacting, and it is unclear how such supply and demand will be impacted by geopolitical events. Large-scale sales of EPT tokens would result in a reduction in the liquidity of such tokens.


12. RISKS ARISING FROM TAXATION

The tax characteriation of EPT tokens is uncertain in many jurisdictions. You must seek your own tax advice in connection with purchasing EPT tokens, which may result in adverse tax consequences to you, including but not limited to withholding taxes, income taxes and tax reporting requirements. You bear the sole responsibility for any taxation requirements, in purchasing, using and holding EPT tokens.


13. RISK OF ALTERNATIVE PLATFORMS

It is possible that alternative platforms could be established that utilize the same open source code and protocol underlying the e-Pocket Platform and attempt to facilitate services that are materially similar to those intended to be delivered through the e-Pocket Platform. The e-Pocket Platform may be in competition with these alternative platforms, which could negatively impact the e-Pocket Platform and EPT tokens.


14. RISK OF INSUFFICIENT INTEREST IN THE E-POCKET PLATFORM

It is possible that the e-Pocket Platform will not be used by a large number of external businesses, individuals, and other organisations and that there will be limited public interest in the use of EPT tokens for peer-to-peer trading. Such a lack of interest could impact the development of the e-Pocket Platform for global release. e-Pocket cannot predict the success of its own marketing efforts or the efforts of other third parties.

It is possible that, due to any number of reasons, including without limitation, the failure of business relationships or marketing strategies, that the e-Pocket Platform and all subsequent marketing of the sale of EPT tokens from e- Pocket, may fail to achieve success.


15. RISK OF AN UNFAVOURABLE FLUCTUATION OF ETHER AND OTHER CURRENCY VALUE

The e-Pocket intends to use the proceeds from selling EPT tokens to fund the maintenance and development of the Platform. The proceeds of the EPT sale will be denominated in ETH, and can be converted into other cryptographic and fiat currencies. In addition, some sales of EPT may also be denominated in fiat currencies. If the value of ETH or other currencies fluctuates unfavorably during or after the Sale Period, e-Pocket may not be able to fund development, or may not be able to develop or maintain the e-Pocket Platform in the manner that it intended.


16. RISK OF DISSOLUTION OF E-POCKET

It is possible, due to any number of reasons including, but not limited to, an unfavorable fluctuation in the value of Ether (or other cryptographic and fiat currencies), decrease in the e-Pocket Platform’s utility, the failure of commercial relationships, or intellectual property ownership challenges, that the e-Pocket Platform may no longer be viable to operate and e-Pocket may dissolve or be wound up or face an uncertain or changing regulatory regime.


17. RISKS ARISING FROM LACK OF GOVERNANCE RIGHTS

As ownership of a EPT token confers no governance rights of any kind with respect to the e-Pocket Platform or e-Pocket, all decisions involving the e-Pocket Platform or e- Pocket will be at e-Pocket PTY LTD sole discretion, including, but not limited to, decisions to discontinue the e-Pocket Platform, to create and sell more EPT tokens for use in the e-Pocket Platform, or to sell or liquidate e-Pocket. These decisions could adversely affect the e-Pocket Platform and any EPT tokens you hold.


18. RISKS INVOLVING CLOUD STORAGE

As the e-Pocket uses a decentralised cloud storage service to host the e-Pocket Platform and related Applications, the e-Pocket Platform is susceptible to a number of risks related to the storage of data in the cloud. Such data may include large amounts of sensitive and or proprietary information, which may be compromised in the event of a cyber-attack or other malicious activity.

Similarly, the e-Pocket Platform may be interrupted, and files may become temporarily unavailable in the event of such an attack or malicious activity. As users can use a variety of hardware and software that may interface with the e-Pocket Platform, there is the risk that the e-Pocket Platform may become unavailable or interrupted, based on a failure of interoperability or an inability to integrate these third- party systems and devices that e-Pocket does not control with the e-Pocket Platform. The risk that the e-Pocket Platform may face increasing interruptions and additional security vulnerabilities could adversely affect the e-Pocket Platform, and therefore the future utility of any EPT tokens that you hold.


19. CRYPTOGRAPHIC TOKENS MAY EXPERIENCE RISK OF EXTREME PRICE VOLATILITY

As noted above, EPT tokens are not intended to represent any formal or legally binding investment. Cryptographic tokens that possess value in public markets, such as ETH, have demonstrated extreme fluctuations in price over short periods of time on a regular basis. You should be prepared to expect similar fluctuations, both down and up, in the price of EPT denominated in ETH, USD, AUD or currencies of other jurisdictions. Such fluctuations are due to market forces and represent changes in the balance of supply and demand. As mentioned, exchanges are independent of and not operated by e-Pocket, therefore use of exchanges is at your own risk and e-Pocket cannot and does not guarantee market liquidity for EPT tokens and therefore there may be periods of time in which EPT tokens are difficult to buy or sell. Additionally, due to different regulatory requirements in different jurisdictions and the inability of citizens of certain countries to open accounts at exchanges located anywhere in the world, the liquidity of EPT tokens may be markedly different in different countries and this would likely be reflected in significant price discrepancies. By purchasing EPT tokens, you expressly acknowledge and represent that you fully understand that EPT tokens may experience volatility in pricing and will not seek to hold any of e-Pocket, its directors, officers, agents and advisors liable for any losses or any special, incidental, or consequential damages arising from, or in any way connected to, the sale of EPT tokens. It is also possible that the value of ETH will drop significantly in the future, depriving e-Pocket of sufficient resources to continue to operate.

It is possible that a competing cryptographic token other than EPT tokens could have features that make it more desirable to a material portion of the cryptographic token user base, resulting in a reduction in demand for EPT tokens, which could have a negative impact on the use and price of EPT tokens generally. It is possible that a comparable product could become materially popular due to either a perceived or exposed shortcoming of the e-Pocket Platform that is not immediately addressed by e-Pocket, or a perceived advantage of a comparable product that includes features not incorporated into the e-Pocket Platform. If this product obtains significant market share, it could have a negative impact on the demand for, and price of EPT tokens.

The e-Pocket Platform is a new product, thus contributing to price volatility that could adversely affect the value of EPT tokens. There are many factors affecting the further development of the cryptographic token industry, as discussed throughout this section. These risks can include, but is not limited to, continued worldwide growth in the adoption and use of EPT tokens and other tokens; changes in consumer demographics, public tastes and preferences; general economic conditions; and the regulatory environment relating to the e-Pocket Platform, EPT tokens and other tokens.


20. RISK OF INTELLECTUAL PROPERTY RIGHTS CLAIMS

Intellectual property rights claims may adversely affect the operation of the e-Pocket Platform. Third parties may assert intellectual property ownership claims relating to the holding and transfer of cryptographic tokens and their source code. Regardless of the merit of any intellectual property claim or other legal action, any threatened action that reduces confidence in the e-Pocket Platform’s long-term viability or the ability of end-users to hold and transfer EPT tokens, may adversely affect the value of EPT. Additionally, a meritorious intellectual property claim could prevent you from accessing the e-Pocket Platform, holding or transferring your EPT tokens.


21. UNANTICIPATED RISKS

Cryptographic tokens such as the EPT tokens are a new and relatively untested technology. In addition to the risks noted above, there are other risks associated with your purchase, holding and use of EPT tokens, including those that e-Pocket cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the risks set out above.


22. EPT TOKEN CONTRACT ADDRESS

The EPT Token contract is published on Ethereum address:

0x449684cec6727d7240ecc6f29a0ebff9c5b27e59