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Disclaimers and Disclosures on Risk

Disclosure of Risks protect AmpliFi, End Users, Holders, Traders, and prospective Holders and helps to ensure that AmpliFi can maintain lawful operations for years to come

An overview on Risks and Risk Management

AmpliFi is not a Security or an Investment

Please be advised: Cryptocurrencies and Digital Assets are inherently risky. Cryptocurrencies are naturally subject to volatile price action. Nothing on this website should be considered Financial Advice. Under the United States Securities and Exchange's (SEC) Howey Test, #AMPLIFI is not a Security. An individual receives a Security in exchange for providing money and subsequently expecting profit off the work of others. With AmpliFi, the burden is on you to do the work. You acquire your own tokens, redeem them for an Amplifier, and then Fuse them to the Annuity to accrue emissions.No relationship is created between any parties; no party, neither the user nor AmpliFi, owes any obligation to the other. No party is performing any work on behalf of the other. AmpliFi’s creators do not work for you, and you do not work for AmpliFi. No party has made any promises to any other party. AmpliFi is merely a decentralized gateway for long-term value accrual and high-yield savings for as long as blockchains and Distributed Ledger Technology (DLT) offers rewards or emissions for data validation and data security. Neither AmpliFi nor #AMPLIFI is designed as a Security and is neither subject to nor compliant with Federal or International Laws and Regulations governing Securities.
Individuals who reside in countries which ban or restrict the possession or acquisition of cryptocurrencies or digital assets are prohibited from acquiring #AMPLIFI tokens or interacting the with Dapp. The information contained on this site is for informational and educational purposes only. We recommend you consult with your Financial Advisor, Accountant, and Tax Attorney prior to making any financial decision. As a high-yield decentralized structured product, AmpliFi seeks to become a safer alternative to traditional DeFi protocols but is nevertheless subject to natural price fluctuation and some degree of market volatility, including violent price action in market corrections or coordinated sell-offs, such as those triggered by Centralized Exchanges. AmpliFi and its creators are not responsible for any capital gains or losses incurred by users. Do your own research and consult with experts before making any financial decisions. Do not spend money you cannot afford to lose.

AmpliFi is not a Commodity

AmpliFi is not a Commodity under the Rules and Regulations outlined by the U.S. Commodity Futures Trading Commission ("CFTC"). Through regulatory enforcement actions, the CFTC prohibits any DeFi protocol to market, advertise, or otherwise promote any decentralized or crypto-based trading products related to the use of Margin, Leverage, Futures, and/or Perpetuals Trading. For these reasons, AmpliFi prohibits U.S. based crypto market participants from interacting with the AmpliFi Dashboard or trading #AMPLIFI.

Disclosures: Sanctions

U.S.-sanctioned individuals and residents of U.S.-sanctioned countries are prohibited from acquiring, possessing, or trading #AMPLIFI. By interacting with AmpliFi's website, Dapp, and/or the #AMPLIFI token, or within any Decentralized Exchange (DEX) or Centralized Exchange (CEX), you are self-certifying that you are not a sanctioned individual prohibited from purchasing, acquiring, or otherwise holding or trading #AMPLIFI.

Disclaimer: General

Disclaimer: AmpliFi is a decentralized cryptocurrency project which introduces a native digital asset (token), #AMPLIFI. #AMPLIFI is not owned by any one person or entity. Neither the creators of AmpliFi, nor AmpliFi itself are responsible for losses, mistakes, errors, or inaccuracies you experience or encounter while interacting with AmpliFi’s website, Dapp, Documentation, social media accounts, or the #AMPLIFI or $gAMP token. By interacting with this Website, you expressly agree to use this platform and/or trade or possess these tokens and Amplifiers at your own risk. No information on this website, platform, or Dapp should be considered financial, legal, tax, or accounting advice in any capacity. #AMPLIFI is neither an investment, nor a Security, and is not subject to the jurisdiction of the SEC or any Securities agency. DeFi is inherently risky and you should never risk more capital than you can afford to lose.

Disclaimer: Restricted Locations
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Due to issues pertaining to regulatory uncertainty, use of the AmpliFi Dashboard/Dapp and trading the #AMPLIFI token is currently prohibited across the following locations: United States, European Union.

AmpliFi is not an "Annuity" investment

Important note: In traditional markets, an annuity generally constitutes an upfront investment which pays investors throughout the remainder of their lifetimes. In the context of AmpliFi as a decentralized crypto annuity, neither apply.
First, AmpliFi is not an investment. It is a decentralized platform which offers users the opportunity to pay an upfront cost to create volume-based revenue-sharing with respect to Ethereum ($ETH) distributions.
Second, AmpliFi does not claim nor guarantee that any holders will be paid any specific or structured amount over their lifetimes. Instead, AmpliFi promises volume-based $ETH distributions to holders for the lifetime of the project which are dependent on a variety of factors, including but not limited to protocol volume, revenue, number of Validators in operation, treasury and capital funding, etc.
As $HEX is a decentralized crypto Certificate of Deposit ("CD"), AmpliFi is a decentralized crypto annuity.
AmpliFi will never promise eternal returns, lifetime returns, or specific returns over a set period.
The term "annuity" in this context is not a traditional annuity, but rather a variation of the term applied to the context of digital assets and cryptocurrencies, devised to convey to the general mission and purpose of the project.
AmpliFi, #AMPLIFI, and any AmpliFi-based offerings (e.g. Amplifiers, staking, etc.) are NOT annuitities in the classic traditional sense of the term, and should NOT be construed as a traditional annuity.

Perpetual Yield Meaning

AmpliFi distributes perpetual volume-based yield in specific cryptocurrencies over the duration of the project. This should never be misunderstood or misconstrued to mean "forever," "indefinite," "eternal," "lifetime," or otherwise.
AmpliFi will never make any promises, claims, guarantees, or assurances that the platform, entity, project, token, or structure will last indefinitely. AmpliFi as a project may pivot its cryptocurrency yield distribution mechanisms. AmpliFi as a project may also be forced to one day cease operations (due to, for example, insolvency), in which case any accrued yield may run the risk of becoming devalued. In the event AmpliFi's operations cease or the #AMPLIFI token fails, any "perpetual" yield ceases as well.

Inherent Smart Contract and Staking Risk

There exist a number of potential risks when deploying a Contract or staking $ETH:
  • Smart Contract Security
    • There is an inherent risk that, even in the presence of audited smart contracts, any smart contract created by AmpliFi could contain a bug or vulnerability. AmpliFi's code is open-source, and is available for review by all.
    • There is an inherent risk that, even in the presence of audited smart contracts, any smart contract created by AmpliFi could be exploited through an exploit affecting the Deployer wallet, which could enable a criminal to gain unlawful access to the Contract. AmpliFi maintains security mechanisms to mitigate this risk; this risk, however, is the same risk to which every cryptocurrency wallet is subject to and can never be made entirely risk-free.
  • Technical Risk regarding the Ethereum Merge
    • The Ethereum Merge is the term which connotates the transition from Mining (Proof of Work) to using data Validators (Proof of Stake).
    • AmpliFi is reliant on a successful Merge from Proof of Work to Proof of Stake across the entire Ethereum Layer 1 mainnet network.
    • There is no guarantee the ETH Merge or "ETH 2.0" has been developed error-free.
    • There exists a risk that ETH deposited into the Staking contract for Validator-use could be irretrievable.
    • If the Merge concludes without error, there still exists a risk of security exploits with operational Validators. AmpliFi seeks to minimize this risk through any means possible.
  • Adoption Risk
    • The value of #AMPLIFI is premised in part on staking rewards associated with the Ethereum chain following the Merge. If ETH fails to merge successfully, or encounters substantial delays, the value of #AMPLIFI may fluctuate.
  • AmpliFi ETH Management Risk
    • There permanently exists a risk that AmpliFi's treasury or ETH funds may be exploited and/or stolen. While the AmpliFi team employs security measures to avoid this, this risk applies to all cryptocurrency projects and can be minimized, but never avoided completely.
  • Validator Operations Risk
    • ETH designated towards Validators and staked in the ETH 2.0 smart contract are subject to 100% of the total loss of ETH if the Validators fail. To minimize risk, AmpliFi seeks to contract with several reputable and professional node operators to minimize operational risk.
  • #AMPLIFI Price Risk
    • The native token, #AMPLIFI, is subject to major price fluctuations, including possessing a market value lower than its intrinsic or inherent value. Ultimately, the market determines the price of #AMPLIFI, not the creators of AmpliFi.
  • Ethereum Validator Risk
    • AmpliFi operates Ethereum Validators and offers accrued rewards to #AMPLIFI holders with Fused Amplifiers. AmpliFi maintains reasonable security mechanisms to mitigate the risk that 1 or more validators is exploited by an unlawful actor; however, this risk can never be entirely mitigated and exists across every single validator on the Ethereum network.

Transistor, Amplifier, Fused Amplifier, Staking, and Liquidity Mining Yield Adjustment
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Native yield may be reduced or increased upon a determination that decreasing or increasing annualized native yield is beneficial or necessary to the long-term health and viability of AmpliFi and the #AMPLIFI token. At the outset, this decision is relegated to the creators of AmpliFi, and will transition to community control through governance proposals and voting.

Decay Adjustment
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Native claim decay may be accelerated or reduced dependent on protocol performance over time, upon a determination that annualized yield is nearing a point of unsustainability. Claim decay yield will never be adjusted without dislcosure to holders with reasonable notice. AmpliFi will make every attempt to disclose scheduled adjustments, if any, well in advance.

Centralized Risk of a Smart Contract without Renounced Ownership

In order for the AmpliFi developer team to execute the necessary burn-and-refills mechanisms on select contracts, they must remain actively owned, rather than renounced. This is imperative to the deflationary mechanisms of AmplIFi and was carefully considered during initial development as a feature, not a bug. We feel the need to justify the decision here as we've seen several individuals display skepticism around the contract not being renounced. AmpliFi's goal is to be as transparent as possible - the team maintains the Deployer Key, and has the necessary safety measures in place to remain as confident as possible in this decision. Regardless, it's important to notify the community of this reality and the risks associated. AmpliFi appreciates your understanding of this delicate situation.
Update: As of late September 2022, the AmpliFi development team has internally identified a solution devised by dividing ownership of the Contract across 2 new, separate Smart Contracts, which will automate the burn-and-refill mechanism, and relegate yield adjustments to the secondary contract. These upgrades are scheduled for 2023 and will not affect the end user.

Terminology
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AmpliFi is not an investment. AmpliFi is a decentralized cryptocurrency project as is not subject to laws and regulations governing securities or annuities.
Terms like "perpetual," "product," "service," "annuity," "dividend(s)," "reward(s)," "offering(s)," "yield," "structured product," "real yield," "rate(s)," "savings," "earning(s)," "revenue," "income," "annuity," "APY," "annualized," "risk-free rate," "tokenomics," etc., should be construed merely as descriptive marketing terms to convey the project's purpose to holders or potential holders in a way that is familiar to most people.
These terms are familiar to individuals who invest in traditional markets, and are thus more appropriately used to create an accurate depiction of this DeFi project, as opposed to creating entirely new terminology. Creating new terminology which foreign to the reasonable person, to describe AmpliFi, could be viewed as deceptive or misleading. It is for these reasons AmpliFi uses these existing terms.
These words and others like it are mere descriptors - colorful marketing terms, and should not be misunderstood to constitute an investment, promise, or guarantee of any sort.

Roadmap Disclosures

AmpliFi's Roadmap constitutes a Notice of Intent, not an Offer, Agreement, Promise, Contract, or Guarantee

On September 30th 2022, AmpliFi will/has release(d) a tentative Roadmap outlining the future of the AmpliFi DeFi protocol. The Roadmap shall be viewed by all users, traders, holders and prospective holders as AmpliFi's official intent, not as an offer, promise, guarantee, contract, or agreement. Why? Read below.
Regulatory authorities across the world have occasionally filed enforcement actions against DeFi projects which present a Roadmap with no intention to fulfill anything outlined on the Roadmap. Clearly, this is not the case here, as AmpliFi has already built certain features contained within the Roadmap. However, the AmpliFi entity and its creators and development team must release this Notice of Intent as a means to shield AmpliFi and the team against enforcement actions, whether brought by regulatory agencies, traders, holders, prospective holders, or end users. This disclaimer signals AmpliFi's Notice to holders, traders, end users, and regulatory agencies that AmpliFi's Roadmap is merely an intention and shall never be construed otherwise for any reason.
For these reasons, this Roadmap is subject to change, and may be partially fulfilled, altered, or modified. The end user (holder) agrees to hold harmless and indemnify AmpliFi and its creators for liability and damages in the event AmpliFi completes only a portion of the Roadmap, or if AmpliFi changes, deletes, alters, or modifies parts or all of this Roadmap.
Completion of all or part of this Roadmap, whether in its current form or in a modified form, is entirely dependent on continued funding, volume, support mechanisms, the team's operational and development capacities and capabilities, perceived interest by the relevant market at the time of consideration, change, and/or implementation, and more.
AmpliFi will of course reasonably seek to complete this Roadmap in its current form or in a modified or revised capacity; however, please remember, the AmpliFi Roadmap is not an offer, promise, guarantee, agreement, or contract, but rather signals AmpliFi's intent to create a flourishing ecosystem of DeFi products for the benefit of end users and holders with Fused Amplifiers.
For more information, please contact the AmpliFi team at [email protected]
Copyright 2022. AmpliFi. All rights reserved.