Risk with Private Keys - Consensys operates non-custodial services, meaning we do not have access to your assets or your private keys; and you alone are responsible for safeguarding any digital assets that come into your possession by ensuring the security and confidentiality of the private keys which control those assets. You should understand and protect yourself against the risk that your private keys will be lost or stolen, thus resulting in a loss.
Security - By electing to use this offering, you are interacting with smart contracts, which involves the risk that the code contains bugs or a security vulnerability. Bugs and vulnerabilities in smart contract code can result in a loss to you. You should investigate whether any smart contract you are using has undergone a security audit, and you should understand the results of that audit and any changes the developers made in response to that audit. You should also maintain awareness of any news regarding security vulnerabilities pertaining to the smart contracts you are using.
Price - Digital assets you acquire or interact with while using our software are subject to volatility. Volatility may occur due to normal market forces or be caused by technical issues with third party software. There is no guarantee that a digital asset will remain stable or increase in value, or that you will be able to sell any digital assets. Consensys is not an exchange or financial institution and we make no representations or warranties regarding any asset. The decision to deal in any particular digital asset is solely that of our users and our users accept risks described herein.
Governance - The smart contract protocols you interact with through this offering are not governed by Consensys but instead third parties or groups of third parties, including Digital Autonomous Organizations (“DAOs”) that are composed of individuals and entities that possess a protocol governance token. That token may give the token holders the privilege of voting on changes to the smart contract that you have interacted with, among other things. There is a risk that any changes that they might make in the future would result in a loss or other negative effect on you and your assets. Consensys has no obligation to assess any changes to smart contracts or warn you about or take any other action with respect to any governance actions that might lead to a smart contract change.
Intermediation - The protocols may require off-chain software and information flows to function properly. For instance, information from the Ethereum consensus layer must be sent off-chain to the protocol’s smart contracts that exist on the Ethereum execution layer. There are also data sources called “oracles” that convey off-chain information that on-chain smart contracts require to function properly. There is a risk that this process will fail or even be manipulated in a way that results in a loss to you.
Suspension, Termination and Withdrawal - You may un-stake or stop using the services at any time. Consensys may suspend or terminate this offering for any reason in its sole discretion and is under no obligation to disclose the details of its decision to take such action with you. In certain offerings, such as MetaMask Validator Staking, Consensys may be able to initiate the un-stake process to the wallet you staked with. Upon 90 days notice from Consensys of termination of the offering or suspension of your access, you must initiate and complete the un-stake process. After 90 days' notice, in its sole discretion, Consensys may initiate the un-stake process on your behalf to the wallet you staked with.
No Guarantee of Rewards - Consensys DOES NOT GUARANTEE THAT YOU WILL RECEIVE STAKING REWARDS OR ANY STAKING REWARD RATES. SUCCESSFUL TRANSFER OF THE REWARDS IS SUBJECT TO THE PROOF-OF-STAKE NETWORKS AND IS NOT UNDER CONSENSYS’ CONTROL. REWARD RATES ARE DETERMINED BY THE UNDERLYING PROTOCOLS AND NOT BY CONSENSYS AND MAY FLUCTUATE, INCLUDING BECAUSE THE UNDERLYING SERVICES GENERATING REWARDS ARE PERFORMED IMPROPERLY.
Underlying Blockchain Risk - The protocols you are accessing through this offering exist on a blockchain network that may suffer a malfunction or breakdown that would negatively affect the operation of the protocol and thus may result in a loss to you. There is no certainty that the cryptography that underpins the blockchain will never be broken, potentially resulting in a loss to you. Further, upgrades to the blockchain (often called “forks”) may create instability, vulnerabilities, or other problems that may result in a loss to you. Fundamentally, blockchain ecosystems are still young, and until they develop a longer track record of security, reliability, and resilience, you bear the risk that there may be problems which lead to the loss of your assets.
Legal Uncertainty - Currently, neither this offering nor the third party services that it connects to are, in our view, regulated activities. However, the regulatory landscape for blockchain technology and related services is constantly evolving around the world and any changes may negatively affect your use of this offering, which could result in a loss to you. Consensys has no obligation and will not notify you of any relevant changes in the law.