Please read carefully these Terms and Conditions (these “Terms” and/or “Agreement”) before using the link http://origintrail.io/token-sale/ (the “Website”) or accepting the Trace Tokens (“TRAC”), as they affect your obligations and legal rights, including, but not limited to, waivers of rights and limitation of liability in connection with using the Website and accepting TRAC. If you want to participate in the upcoming Trace Token Generation Event (as further described in Exhibit B, the “TGE”), you should also read these Terms and accept them. If you do not agree with these Terms, you shall not use the Website or accept Trace Tokens.
Furthermore, your participation in the TGE from OriginTrail Limited (OriginTrail, d.o.o., a limited liability company incorporated under the laws of the Republic of Slovenia, registered with the commercial court of Ljubljana under the registration number 8088314000) (“Company”, “we”, or “us”) is subject to these Terms. Each of you and Company are a “Party”, and together the “Parties”.
By visiting the Website and participating in the TGE (i.e. transferring Ether (ETH) to the Smart Contract System and the Smart Contract System creating TRAC), you understand and accept that you make a contribution into a Smart Contract System for the deployment of the OriginTrail ecosystem as described in the OriginTrail Whitepaper (“OriginTrail Project” or “the Whitepaper”). The information contained in the Whitepaper and on the Website are of a descriptive nature only, are not binding and do not form part of the Terms unless explicitly referred to herein.
This Terms contain certain forward-looking statements. These are based on analyses or forecasts of future results and estimates of amounts not yet determinable or foreseeable. Such forward-looking statements in these Terms are based on current estimates and assumptions that the Company makes to the best of its present knowledge. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual developments to differ materially from and be worse than expected or assumed or described in these forward-looking statements. Accordingly, any person interested in participating in this TGE is strongly advised to read Exhibit C of the Terms. In light of these risks, uncertainties and assumptions, future events described in the Terms may not occur. In addition the Company does not assume any obligation, except as required by Slovenian statutory law, to update any forward-looking statements or to confirm these forward-looking statements to actual events or developments.
You will be bound by these Terms and all terms incorporated by reference. If you have any questions regarding these Terms, please contact us at email@example.com.
You and Company agree as follows:
OriginTrail ecosystem (the “Network”) is enabled by the tokenization of data exchange and supply chain processing functionalities. As described, the system consists of a network of machines (referred to as “nodes”) that are all running Network full software clients. Their supply is met by the demand of users of the protocol (supply chain data producers and consumers) that wish to share supply chain data using OriginTrail. TRAC is the means of compensation between supply chain data producers and data consumers on one side and the OriginTrail node holders on the other. It provides the incentive to the nodes in the peer to peer network to perform the system functionalities. Maintaining and operating the p2p network takes resources: time, electricity, computing power, storage space and communication bandwidth. Therefore, nodes are incentivized to do two groups of tasks: a) data processing, data storing and b) managing and delivering the data in graph form (the “Services”).
Except for the private pre-sales (as described in Exhibit B), a certain, subsequently defined, percentage of the received means for TRAC are intended to facilitate the provisioning of support from Company to the Network, which includes active developer support, maintenance of a robust user interface, and various customization tools, described more fully in Exhibit A. The Company has the right to engage subcontractors.
Except for the private pre-sales (as described in Exhibit B), the remaining percentage (according to the subsequently defined percentage from the preceding paragraph) of the received means for TRAC are intended for the creation of an incentivization and promotion plan for the usage of the Network.
The Company will engage in a private pre-sale of TRAC (as described in Exhibit B). The Company may immediately use the means received in the private pre-sales for the promotion and deployment of the OriginTrail project and TGE and for any other purpose in its sole discretion.
We do not operate or maintain the Network nodes, and as such, we have no responsibility or liability for the Network nodes or any ability to control third parties’ use of the Network.
TRAC do not confer any rights other than rights relating to the provision and receipt of Services in the Network as described in the first Paragraph of this Section 1, subject to limitations and conditions in these Terms. TRAC are not intended to be a legal tender, security, commodity, or any other kind of financial instrument.
Your acceptance of TRAC from us during the TGE is final, and there are no refunds or cancellations except as may be required by applicable law or regulation. We reserve the right to refuse or cancel requests for refunds or cancellation at any time in our sole discretion.
Notwithstanding the preceding paragraph Company expressly informs you that the TGE is excepted from right of withdrawal in relation to Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 since it the price of TRAC is dependent on fluctuations in the financial market which cannot be controlled by the Company and which may occur within the withdrawal period.
Important information about the procedures and material specifications of the TGE is provided in Exhibit B, including, but not limited to, details regarding the timing and pricing of TRAC, the amount of TRAC we will distribute, and our anticipated use of the means received during the TGE. By accepting TRAC, you acknowledge that you have read, understand, consent and accept these procedures and material specifications.
You are responsible for implementing reasonable measures for securing the wallet, vault or other storage mechanism you use to receive and hold TRAC you accept from us, including any requisite private key(s) or other credentials necessary to access such storage mechanism(s). If your private key(s) or other access credentials are lost, you may lose access to your TRAC. We are not responsible or liable for any such losses.
We may be required to obtain certain information about you in order to distribute TRAC to you. If you do not provide the information requested by us, then we may be unable to distribute TRAC to you.
Your cost for TRAC is exclusive of all applicable taxes. You are responsible for determining what, if any, taxes apply to your acceptance of TRAC, including, for example, sales, use, value added, and similar taxes. It is also your responsibility to withhold, collect, report and remit the correct taxes to the appropriate tax authorities. We are not responsible for withholding, collecting, reporting, or remitting any sales, use, value added, or similar tax arising from your acceptance and use of TRAC.
By receiving and accepting TRAC, you represent and warrant that:
It is therefore your responsibility to consult with local legal, tax and other advisers to find out whether your participation in this TGE constitutes a breach of law or regulation under your jurisdiction. Violation of applicable laws or regulation may result in administrative or even criminal charges.
If you are a U.S. or Canadian citizen or permanent resident, you must pass additional accreditation as an “accredited investor”.http://www.nbkr.kg/searchout.jsp?item=31&material=50718&lang=ENG
If you are a US citizen or permanent resident, prior to receiving and accepting TRAC, you must supply the Company evidence and/or verification acceptable to the Company that you are an “accredited investor” as defined in Rule 506 of Regulation D (17 CFR Sections 230.500 et seq.).
If you are a Canadian citizen or permanent resident, prior to receiving and accepting TRAC, you must supply the Company evidence and/or verification acceptable to the Company that you are an “accredited investor” as defined in Section 2.3 of National Instrument 45-106 Prospectus Exemptions (NI 45-106).
The process below is in full discretion of the Company and shall be used on a case by case basis.
You understand and accept, that participation in the TGE and acceptance of TRAC will not be possible from an address that has not been previously registered according to the procedure defined herein. During this registration process an identity check of you will be conducted as defined herein and the Company will decide at its sole discretion, whether your address will be whitelisted. The Company has absolute discretion and may reject your address for any reason or no reason at all.
Any data provided by you as part of the registration will be processed and stored in accordance to Slovenian and European Union's data protection laws. Any personal data collected will be used solely for the purpose and as part of the contribution process and to provide further information to you on the project. You understand and accept that your address may not be whitelisted and that the registration process may either delay and/or not execute due to the overall volume of requests, technical problems and/or similar events.
You understand and accept, that you shall not register an address of any currency exchange (i.e., Poloniex, Coinbase, Bitfinex, etc). Such addresses may not be whitelisted and/or may not receive TRAC. You confirm by using the registration process and providing the requested information to the Company, that all information provided within the registration process is true and accurate and that that you do not act on behalf of any third party.
Money laundering (“ML”) is a process intended to mask the benefits derived from criminal conduct so that they appear to have originated from a legitimate source.
Acts of terrorism seek to influence or compel governments into a particular course of action or to intimidate the public or a section of the public. Terrorists require funds to carry out acts of terrorism, and terrorism financing (“TF”) is the act of providing these funds. Such funds may be derived from criminal activities such as robbery, drug-trafficking, kidnapping, extortion, fraud, or hacking of online accounts. In such cases, there may be an element of ML involved to disguise the source of funds.
However, terrorist acts and organizations may also be financed from legitimate sources such as donations from charities, legitimate business operations, self-funding by individuals etc. Coupled with the fact that TF need not always involve large sums of money, TF can be hard to detect and trust companies should remain vigilant.
The Company defends against involvement in illicit activities, such as money laundering, by doing the following:
An anti-money laundering policy (“Policy”) shall be reviewed and approved by the Company's directors.
As part of its account generation and creation process, Company shall:
End User Verification
The validity of documents used to support the opening of an account is to be confirmed before the account can be finalized. Verification requires layered security, multi-factor authentication, and the satisfaction of other obligations to ensure that your identity has been meaningfully confirmed. Amongst these measures the Company reserves the right to set up local meeting points where a Company representative would perform a face to face identification of the contributors. If a backer is invited to such a meeting point they are obliged to make contact with the Company´s representative and schedule a face-to-face meeting. Failure of doing so can be considered as a breach of these Terms.
Account size and other factors are considered during this process. These methods are examples of verification processes that the Company reserves the right to employ:
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW AND EXCEPT AS OTHERWISE SPECIFIED IN A WRITING BY US, (A) TRAC ARE SOLD ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT WARRANTIES OF ANY KIND, AND WE EXPRESSLY DISCLAIM ALL IMPLIED WARRANTIES AS TO TRAC, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON- INFRINGEMENT; (B) WE DO NOT REPRESENT OR WARRANT THAT TRAC ARE RELIABLE, CURRENT OR ERROR-FREE, MEET YOUR REQUIREMENTS, OR THAT DEFECTS IN TRAC WILL BE CORRECTED; AND (C) WE CANNOT AND DO NOT REPRESENT OR WARRANT THAT TRAC OR THE DELIVERY MECHANISM FOR TRAC ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS.
Some jurisdictions do not allow the exclusion of certain warranties or disclaimer of implied terms in contracts with consumers, so some or all of the exclusions of warranties and disclaimers in this section may not apply to you.
A certain amount of your personal data may have to be provided in order for the Company to validly issue TRAC. The personal data may comprise the data requested in accordance with the KYC/AML process requirements. Such collected data solely serves the purpose of processing the TRAC issuance under these Terms. Moreover, such data is gathered to fulfil relevant legal requirements. Personal information will in no event be communicated or released to third parties, save from the Company's bank if requested, and is to be deleted by the Company after the purpose of the gathering has been met. As the TRAC issuance is submitted only on your demand, the voluntary provision of your data is considered an explicit approval of the subsequent processing of such data.
Any person considering to participate in this TGE is required to inform themselves about, and to observe, any restrictions imposed upon them by any jurisdiction other than the laws of Slovenia in connection with Privacy and immediately inform the Company if such laws set special requirements with regard to privacy issues.
Any person considering to participate in this TGE gives explicit consent to the use of the received data for the following purposes:
Any person who provided personal data to the Company can demand its deletion by sending an email to: firstname.lastname@example.org.
To the fullest extent permitted by applicable law, you release Company and the other Company Parties from responsibility, liability, claims, demands and/or damages (actual and consequential) of every kind and nature, known and unknown (including, but not limited to, claims of negligence), arising out of or related to disputes between the Parties and the acts or omissions of third parties. You expressly waive any rights you may have under any relevant law or legal principle that would otherwise limit the coverage of this release to include only those claims which you may know or suspect to exist in your favor at the time of agreeing to this release.
If any term, clause or provision of these Terms is held unlawful, void or unenforceable, then that term, clause or provision will be severable from these Terms and will not affect the validity or enforceability of any remaining part of that term, clause or provision, or any other term, clause or provision of these Terms.
(a) Network encompasses:
Under 1.(a).1.: Network enables exchange of different data sets between multi-organization supply chains no matter its complexity while ensuring the data quality and integrity. Input and sharing data with the Network is based on a common set of data standards which allow multiple organizations (companies involved in production, distribution or retail of goods) to exchange data beyond the “one step back, one step forward” principle. In order to provide for a uniform data flow, all information must be standardized within the ecosystem. Network adopts widely used GS1 standards. GS1 standards support the information needs of end users interacting with each other in supply chains, specifically the information required to support the business processes through which supply chain participants interact. Network is focused on the EPC Information Services (EPCIS) Standard because it suits the protocol in its core foundations. Network´s features will allow for exchanging and tamper-proof recording of product properties, which leads to accountability and data integrity in product supply chains.
Furthermore, the protocol performs a “consensus check” that verifies there are no discrepancies between data provided by different stakeholders. The check is performed in several steps: Step 1. Each stakeholder has to be approved by the previous and the following supply chain stakeholder, creating a chain of accountability. Step 2. Matching of dynamic batch information is verified, including the critical information of batch identifiers, appropriate timestamps and transactional data. As this step involves company private data (e.g. quantities of sales), a Zero Knowledge Proof mechanism implementation will provide a way to check that private information matching is provable without revealing the information itself. Other dynamic data may include data collected from sensors and compliance data. Step 3. As an additional layer of credibility, auditing and compliance organizations can validate data by supplying their confirmations.
This ensures the entire supply chain is in accords regarding that batch of products. If there is no consensus, discrepancies can be quickly reported, investigated and reconciled. Reconciliation of discrepancies is also recorded on OriginTrail - the additional information is uploaded as a special “reconciliation” data set which is again subject to the same consensus mechanism
Under 1.(a).2. In order to provide the optimal solution, we implement the Network protocol that runs on an off-chain decentralized peer to peer network, called the OriginTrail Decentralized Network (ODN). It enables peers on the network to negotiate services, transfer, process and retrieve data, verify its integrity and availability and reimburse the provider nodes. This solution minimizes the amount of data stored on the blockchain to reduce cost and inefficiency.
OriginTrail incorporates blockchain as the platform to ensure data integrity. For all the information that gets included in the system, a tamper proof "fingerprint" (a cryptographic hash) is generated and stored on the blockchain at the time of arrival. The cryptographic hash is commonly used to prove the received data has not been modified in any way, and having the hash immutable in blockchain as a reference to the original input completes this mechanism. If there is a need to check if data was tampered with, a simple hash comparison between the stored hash in the blockchain and the newly generated hash from the same data in ODN shows if changes have been made. OriginTrail supports many different blockchain implementations. The current version of OriginTrail utilizes Ethereum blockchain to provide proof of concept and initial implementation, the fully developed solution will provide interfaces to many different blockchains.
On top of the blockchain layer are two system layers - the network and data layers, which combined form the ODN system. Because of computational and storage efficiency, the ODN is able to deliver a cost-efficient solution for data integration and manipulation in for supply chain stakeholders
The data layer of ODN takes care of all the necessary data management and connectivity functionalities. Because of the need to connect many different data sets across the supply chain, while providing the flexibility to support many different connection options, data relationships are the key factor to focus on in the data layer. In order to leverage data relationships in the most efficient way, the system needs a database technology that stores relationship information as a first-class entity  . The technical solution which fulfills this requirement is a graph database.
Each specific product supply chain is presented with its own graph. Once data is inserted, it can no longer be changed - only additional information can be added to the graph. Every time new data is introduced to the graph, a new graph fingerprint (cryptographic hash) is created and stored on the blockchain layer. This allows for a versioned graph, where each step in the graph growth can be later verified for credibility against the immutable fingerprints present on the blockchain. It is important to acknowledge that graph databases, with all their strengths, are not a silver bullet for every possible data processing scenario. We are currently experimenting with several different graph DBs, of which some are multi model databases that would allow for even more data manipulation flexibility - i.e. more efficient cumulative analysis.
The network layer takes care of the accessibility and data governance of the underlying data layer. It consists of network nodes which all contain parts of the decentralized database and store graphs of the data. Access to the data is achieved through the provided data exchange API. The peer to peer network is built on a distributed hash table based on Kademlia, which is responsible for efficient routing within the network. The messages between peers are signed, while the Kademlia node ID presents a valid Ethereum address which the node is able to spend from. This enforces long-term identity and helps with Kademlia routing and Eclipse attacks. The network distinguishes between two types of nodes in regards to their interaction with supply chain data - data creators (DC) and data holders (DH). It is important to state that DC and DH nodes are the same in terms of their system capabilities, but are rather viewed differently in the context of the data they hold in the system in regard to specific supply chains. A data creator node is responsible for injecting supply chain data into the network and replicating it over a specific number of data holder nodes. This distinction comes as a form of data governance decentralization - for each number of n DC nodes that are involved in a specific supply chain, an additional number of at least n+1 DH nodes are selected to keep the specific data replicas. All these nodes keep a copy of the data graph in their local databases (a data creator is also a data holder), so in total this means that the minimum ODN replication factor is 2n + 1, where n is the number of supply chain involved nodes. In this way, the system attempts to ensure that the DC nodes are always outnumbered by the DH nodes to minimize the possibility of collusion between supply chain actors who might have an interest in changing an incriminating piece of information inside the supply chain data graph they have assembled.
Services encompass data creator nodes and data holder nodes activity as described under point (a) of this section that enable the Network’s functionalities, which is in more detail described under section 3.2.2., 3.3. and 3.4. of the White Paper, available on this link: http://origin-trail.com/wp-content/uploads/2017/10/OriginTrail-White-Paper.pdf
OriginTrail ecosystem is enabled by the tokenization of data exchange and supply chain processing functionalities. As described the system consists of a network of machines (nodes) that are all running OriginTrail full software clients. Their supply is met by the demand of users of the protocol (supply chain data producers and consumers) that wish to share supply chain data using OriginTrail. TRAC is the means of compensation between supply chain data producers and data consumers on one side and the OriginTrail node holders on the other. It provides the incentive to the nodes in the peer to peer network to perform the system functionalities. Maintaining and operating the p2p network takes resources: time, electricity, computing power, storage space and communication bandwidth. Therefore, OriginTrail nodes are incentivized to do two groups of tasks: Data processing and Storing, managing and delivering the data in graph form.
Write (introducing new supply chain information to OriginTrail) and storing operations are performed by nodes for which they receive the compensation in TRAC based on the agreement reached, in regards to the data distribution protocol mechanism described in this document. It is important to note that OriginTrail uses a blockchain layer which presents an independent system and thus adds additional cost depending on the chosen underlying blockchain for some OriginTrail functionalities. In case of Ethereum being the underlying blockchain, this means that a small amount of gas (Ether) is also needed to store the necessary hashes on Ethereum for the storage operation. Read operations are also compensated with TRAC. An exception where read operations can be free of cost is if certain conditions are met: if one has access to i.e. an Ethereum node for free reads from Ethereum (or another chosen blockchain from the blockchain layer), and if they hold a local OriginTrail node which contains the necessary graphs. The amount of tokens to be awarded for the nodes providing the service is a function of supply and demand between nodes and users. Data creators will not be required to pay any additional arbitrary fees apart from what they agree to pay to the nodes. On the other side, nodes will receive full payment of what they have agreed with and provided to the user. TRAC is implemented as an ERC20 compatible token on Ethereum. This ensures interoperability with wallets and other tokens on Ethereum. TRAC smart contract handles all transactions and balances in a secure and trusted manner.
Company will create 500 million TRAC, a certain percentage of which will be distributed during the TGE according to the specifications below.
Number of TRAC allowed for distribution by one party is limited to a minimum of 1 TRAC and a maximum of 500.000 TRAC.
If less than 50 million TRAC are distributed during the maximal duration of the TGE, or any extension thereof, the project is considered to have failed and each TGE participant will have the possibility to initiate the transfer of the respective amount of Ether submitted for TRAC back to the address used to transfer the respective Ether for TRAC.
After initiation, the TGE will continue until 22,5 million USD value worth of Ether are received for TRAC sold (a “Completion Condition”).
The TGE will be divided into three phases with respective bonuses (i.e. discount with respect to the price defined under the next point 3.):
Public pre-sale: 15. 01. 2018 (12:00 CET) – (23.59 CET) of 28. 01. 2018 with a 20% bonus.
Crowd-sale: 29. 01. 2018 (12:00 CET) – (23.59 CET) of 12. 02. 2018 without any bonus.
In its sole discretion, the Company may amend and alter the TGE calendar and time as well as add or remove TGE phases.
Price of one TRAC is $0.10 USD in ETH.
Anyone who wants to receive TRAC shall register on the Website using their real name and email address and other requested information, as well as have Ether in any wallet. You may only receive TRAC via your Account. To receive TRAC you shall send an amount of Ether, which is equal to an amount of TRAC that you would like to receive to the Wallet address of which is specified in the Account.
To receive TRAC in the TGE, you’ll need to submit two sets of information:
(1) evidence of Accredited Investor status (for US and Canadian citizens and permanent residents only); and
(2) identity details to pass
(2.1) - KYC/AML/CFT (Know Your Customer/Anti-Money Laundering/Countering the Financing of terrorism) checks.
Once this information is processed successfully, we’ll notify you and automatically register you for the TGE.
TRAC will be distributed to TGE participants seven (7) days after the conclusion of the Crowd-sale. This is intended to allow an adequate window for security purposes.
The Company will keep the difference between the amount of TRAC created and amount distributed during TGE, which will be no less than 25% (the “Retained TRACE”).
The Company intends to provide some portion of the Retained TRACE to founders and early employees and/or advisors. The Company may decide to distribute some or all of any additional Retained TRACE.
TRAC is not a security of any kind. TRAC is a token for participation and use of the Network and does not confer ownership, equity or profit rights of the Company, the Network or the OriginTrail Project. TRAC accepted by you hereunder may be transferred by you to any person or entity at any time after the TGE.
The received means for TRAC are intended to facilitate the provision of support from Company in the Network, which include active developer support, maintenance of a robust user interface, and various customization tools, described more fully in Exhibit A
Roughly, the distribution of means up to fundraising goal is planned as follows:
All funds collected above the fundraising target are planned to be used to set up regional presence (e.g. opening offices) and for the envisaged incentivization and promotion plan for the usage of the Network as described earlier in this document (details on both in roadmap section). The planned distribution of funds between the two is 60% for use-case awards and 40% for regional offices expenses.
Important Note: As noted elsewhere in these Terms, TRAC are not being structured or sold as securities or any other form of investment product. Accordingly, none of the information presented in this Exhibit C is intended to form the basis for any investment decision, and no specific recommendations are intended. Company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in this Exhibit C, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting from such information.
By accepting, holding and using Tokens, you expressly acknowledge and assume the following risks:
A private key, or a combination of private keys, is necessary to control and dispose of Tokens stored in your digital wallet or vault. Accordingly, loss of requisite private key(s) associated with your digital wallet or vault storing Tokens will result in loss of such Tokens. Moreover, any third party that gains access to such private key(s), including by gaining access to login credentials of a hosted wallet service you use, may be able to misappropriate your Tokens.
Because Tokens and the Network are based on the Ethereum protocol, any malfunction, breakdown or abandonment of the Ethereum protocol may have a material adverse effect on the Network or Tokens. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the Tokens and the Network by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum protocol.
Hackers or other malicious groups or organizations may attempt to interfere with the Network or the 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. Furthermore, because the Network is based on open-source software, there is a risk that a third party or a member of the Company may intentionally or unintentionally introduce weaknesses into the core infrastructure of the Network, which could negatively affect the Network and the Tokens.
Prediction markets are subject to legal and regulatory requirements in certain jurisdictions, which may impact where the Services may be made available, and therefore your ability to use TRAC for the Services.
The regulatory status of the Tokens 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 Network and the Tokens. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement changes to law and regulation affecting distributed ledger technology and its applications, including the Network and the Tokens. Regulatory actions could negatively impact the Network and the Tokens in various ways, including, for purposes of illustration only, through a determination that Tokens are a regulated financial instrument that require registration or licensing. Company 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 Network will be updated and may undergo significant changes over time. Although we intend for the Tokens and Network to follow the specifications set forth in Exhibit A, and will take commercially reasonable steps toward those ends, we may have to make changes to the specifications of the Tokens or Network for any number of reasons. This could create the risk that the Tokens or Network, as further updated and maintained, may not meet your expectations. Furthermore, despite our good faith efforts to update and maintain the Network, it is still possible that the Network will experience malfunctions or otherwise fail to be adequately updated or maintained, which may negatively impact the Network and Tokens.
The Company intends to use the means received from the TGE to fund the deployment of the Network, as described further in Exhibit B. The means received from the TGE will be denominated in Ether, and may be converted into other cryptographic and fiat currencies. If the value of Ether or other currencies fluctuates unfavorably during or after the TGE, the Company may not be able to fund deployment, or may not be able to deploy the Network in the manner that it intended.
Cryptographic tokens such as the TRAC are a new and untested technology. In addition to the risks included in this Exhibit C, there are other risks associated with your acceptance, holding and use of TRAC, including those that the Company cannot reasonably foresee.
Creating multiple (Sybil) identities would theoretically allow for malicious nodes to pretend to store more copies of the same data, but having them stored only once and quickly fetched from the storing location when required to prove they are providing the service. This issue is addressed by establishing a similar mechanism to the Proof-of-Replication introduced in the Filecoin whitepaper applied to graphs, with the consideration that the data in OriginTrail is public by design. With these preconditions in place, encryption is used to prove replication and not used to obscure data - it is up to the data creator to encrypt the input information they require to be obscured before inputting data into the system.
A 51% attack is usually defined as an ability to control an overwhelmingly large amount (at least 51%) of power in a decentralized system (i.e. hashing power in Ethereum), which then grants the ability to manipulate data. In terms of data integrity in OriginTrail, such an attack is not a problem as for each graph it is deterministically verifiable that the data hasn’t been changed by comparing the hash extracted from the DH node with the cryptographic fingerprints in the blockchain layer. Additionally, DH nodes are incentivized to store in its proper form in order to be able to prove storage and receive compensation. If a node fails to provide proof of retrievability / replication, it can be easily substituted by another node in the system by the data creator.
Byzantine faults are defined as faults caused by nodes to deliver supply chain graph data either by being unavailable or having an incorrect data response. An incorrect response is defined as a response that cannot be validated by an appropriate hash fingerprint on the blockchain layer of OriginTrail. Because of the data governance consensus of replicating the graph data in data holder nodes (where is the number of distinct supply chain data creator nodes), the probability of failure to deliver the requested data significantly diminishes with the number of involved nodes in the exchange. When a DH node fails to deliver service for a required period of time, the data distribution protocol is used to find a new candidate node and replicate the data to keep the required number of copies on the network.
Isolating a node or a multitude of them from the network by having all outbound connections reach malicious nodes is called the eclipse attack. This is addressed by using public key hashes as node IDs in Kademlia. To eclipse a node on the network the attacker has to generate key pairs that position themselves closer in Kademlia to the targeted node than its nearest non-malicious neighbor, as well as maintaining that position when new nodes join with closer IDs. This problem grows in complexity as more nodes are introduced to the network and essentially presents a form of proof-of-work problem.
A malicious node might refuse to deliver certain graph data in order to extort data owners for additional tokens. This possibility is mitigated by replicating graph data across a multitude of nodes.
Such risks may further materialize as unanticipated variations or combinations of the risks discussed in this Exhibit C.
Whitelisting is the process of confirming your ETH wallet address to be able to take part in presale and crowdsale contribution phases. Whitlisting your address also means we will be carrying out the necessary KYC practices to conform with all the legal requirements. You will also access the address to which contributions should be made exclusively through your login. We will never be communicating contribution addresses through any other channels.