Risk Disclosure

Since Bitcoin's creation, mining has been profitable when viewed as a whole. The profitability of individual miner models or the Minto token is less obvious. The risks associated with Bitcoin mining are applicable to this project, since mining power is the basic unit of token collateral, though tokenization itself entails additional risks.

Risks in mining are typically associated with the blockchain protocol and network, including instability, congestion, high transaction fees, network latency, and increasing network difficulty. Such risks can result in delayed or failed transaction processing, and affect the final reward per unit of mining capacity, reducing it to a level where profits cannot be made.

In addition, among other risks, there are risks associated with the token, which may arise due to the presence of vulnerabilities or bugs in the dApp application, as well as attacks aimed at harming the Project, which may result in loss of rewards or make the receipt of rewards unavailable.

There are a number of external risks that we can minimize, but have no control over:

• Risks of damage to the mining equipment or its complete failure, which will affect final mining capacity (including as a result of floods, fires, earthquakes, war, coups, and other events, collectively referred to as Force Majeure);

• Risks of damage to the mining site and infrastructure that would slow down the development of the project or affect the project’s final mining capacity (again including as a result of Force Majeure);

• Risks associated with unilateral increases in electricity rates from government suppliers or material changes in the contract by suppliers.

Although the Project team cannot control these risks, we can predict, minimize, and effectively manage them. The main tasks to minimize and effectively manage risks will be:

• Standardization of data centers for mining in accordance with international ISO standards, and standardization of requirements for the selection and verification of new sites, making checklists for verification;

• Allocation of mining capacities in different data centers managed by the Project, as well as the search for new sites for placement;

• Diversification of mining equipment models and manufacturers;

• Involvement of a large company and consultants for full due diligence of the Project in order to increase the probability of contracts, in which should be spelled out the scheme of property rights transfer, obligations for power supply, as well as the means of legal protection in the event of default, changes in legislation, and other events affecting the performance of the Project;

• Engagement of at least two security companies to analyze and audit the dApp and smart contracts, identify possible errors and/or vulnerabilities (if any), and correct them.