1. Purpose and Scope

This Risk Disclosure Statement (‘Statement’) provides a summary of material risks associated with using the MagixFi ecosystem, including MGF tokens, NFTs, staking, and the related activities. It aims to promote transparency and help users make informed decisions when engaging with blockchain-based services.

2. General Notice

Participation in MagixFi is entirely voluntary and involves significant technological, financial, and operational risks. Users must carefully evaluate their own risk tolerance and legal eligibility before purchasing, holding, staking, or using MGF tokens or NFTs. Participation in MagixFi does not guarantee any form of income, yield, or profit. Users acquire and use MGF tokens and NFTs solely to access decentralized network functions. Rewards, if any, arise exclusively from automated smart-contract mechanisms and not from the managerial efforts of MagixFi or its affiliates. Past performance of network activity or reward rates is not indicative of future results.

3. Market Risk

The market value of MGF tokens and NFTs may fluctuate widely. Digital asset markets are volatile and influenced by global economic conditions, regulatory developments, and speculative activity. MGF tokens and NFTs are not investment products, and their possession does not entitle holders to dividends, revenue shares, or appreciation in value. MagixFi makes no representation or warranty regarding potential returns, staking rewards, or market performance. Past performance, historical yields, or token appreciation are not indicative of future results.

4. Technology and Smart-Contract Risk

MagixFi operates using decentralized smart contracts deployed on the Polygon blockchain and, in future, on the Break proprietary chain. Smart contracts and blockchain infrastructure may contain undetected vulnerabilities, experience downtime, or be subject to hacking, exploits, or forks. Such events may result in partial or total loss of assets or disruption of services.

5. Staking and Cooldown Risk

Staking MGF tokens serves a functional purpose only—activating NFT-linked mining participation within the network. Staking does not constitute a deposit, savings plan, or investment product and carries no assurance of yield, profit, or value increase. Locking MGF tokens for staking activates mining functions but temporarily restricts liquidity. When an unstaking request is initiated, 50% of the tokens become withdrawable after six months and 100% after twelve months. During the cooldown period, tokens remain technically staked and continue to qualify for proportional rewards until withdrawal. All timing and eligibility rules are enforced by smart contracts and cannot be accelerated, reversed, or manually altered by MagixFi.

6. Liquidity and Volatility Risk

The liquidity of MGF tokens and NFTs may be limited or nonexistent on secondary markets. Price volatility can lead to substantial losses. Users may be unable to buy, sell, or convert tokens promptly or at expected values.

7. Wallet and Private Key Risk

Users interact with MagixFi through non-custodial blockchain wallets. Loss or compromise of private keys, seed phrases, or credentials will result in permanent loss of access to associated assets. MagixFi cannot recover lost tokens, NFTs, or credentials under any circumstance.

8. Counterparty and Third-Party Risk

MagixFi interacts with decentralized networks, oracles, and marketplaces (including Polygon, Acurast, Ambios, Aethir, OpenSea, and others). Failures, breaches, or policy changes by third parties may disrupt staking, mining, or reward distribution. MagixFi disclaims responsibility for performance, availability, or actions of any external networks or service providers.

9. Regulatory and Legal Risk

Blockchain technology and digital assets are subject to evolving regulation worldwide. Changes in law or interpretation could affect the legality, taxation, or functionality of MGF tokens or NFTs. Users are responsible for ensuring compliance with applicable laws in their jurisdiction.

10. Tax and Accounting Risk

Holding or transacting in MGF tokens or NFTs may trigger taxable events under local law. Users are solely responsible for determining and reporting their tax obligations. MagixFi does not provide tax advice or act as a withholding agent.

11. Operational and Cybersecurity Risk

Despite best efforts to maintain secure systems, cyberattacks, phishing, or data breaches may occur. Users should exercise caution, verify official communication channels, and avoid interacting with unverified contracts or addresses.

12. Force Majeure and Systemic Risk

Events beyond MagixFi’s control—such as natural disasters, regulatory bans, network outages, or blockchain forks—may impair access to services. MagixFi shall not be held liable for failures caused by force majeure or systemic blockchain failures.

13. User Responsibility

Users must independently verify information, perform due diligence, and ensure compatibility of wallets and contracts. Interacting with MagixFi smart contracts constitutes acceptance of associated on-chain risks. All on-chain outcomes, including any rewards, are algorithmic, probabilistic, and not guaranteed returns of any kind. Users should not interpret staking or holding MGF tokens as a promise or expectation of financial gain. Past performance does not guarantee future outcomes.

14. Limitation of Liability

To the maximum extent permitted by law, MagixFi and its affiliates shall not be liable for any indirect, incidental, or consequential damages, including token loss, data corruption, or trading losses. In all cases, total aggregate liability shall not exceed USD 100.

15. Governing Law and Jurisdiction

This Statement and any disputes arising hereunder are governed by the laws of Costa Rica. Exclusive jurisdiction shall lie with the courts of San José, Costa Rica. 16. Contact Information 3-102-937976 SOCIEDAD DE RESPONSABILIDAD LIMITADA, PROVINCIA 01 SAN JOSÉ, CANTÓN 02 ESCAZÚ, SAN RAFAEL, DEL CENTRO COMERCIAL LA PACO, TRESCIENTOS METROS NORTE, PLAZA FLORENCIA, LOCAL DIEZ, COSTA RICA. Email: hello@magixfi.io.