Risk Disclosure

1.About this disclosure

This Risk Disclosure describes the principal risks of acquiring, holding or using M5 Legacio (M5L), participating in the M5L token sale, and using M5DEX ecosystem products. It supplements our Terms of Use and the M5L whitepaper.

It is not exhaustive. New risks can emerge, and risks can combine in ways that are hard to predict. Nothing here is investment, legal or tax advice — seek independent advice before participating.

2.Market and price risk

• Volatility. Digital asset prices can move sharply and without warning, and the price of M5L could fall substantially or to zero.
• No listing or liquidity guarantee. There is no guarantee that M5L will be listed on any exchange, that a market will develop, or that you will be able to sell at any price.
• The reference price is not a listing price. The sale price is $0.10 per M5L. The stated reference price of $0.16 is used only to express the sale discount. It is not a listing price, floor, target or prediction.
• Fully diluted value is not market value. Figures such as fully diluted value are arithmetic on maximum supply and a stated price. They say nothing about what anyone will actually pay.

3.Lock-up, liquidity and refund risk

M5L bought in the sale is not sent to your wallet. It is recorded as an allocation in the sale vesting contract and released on a fixed schedule from the Token Generation Event on 20 August 2027 · 09:00 UTC:

Until tokens vest you cannot sell, transfer or use them, and market conditions may change completely in the meantime. The schedule is fixed in the contract and cannot be accelerated for anyone.

4.Sale contract controls and key risk

The M5L token contract has no owner, no mint function, no taxes, no blacklist and no upgrade mechanism. The sale and vesting contracts are different: they include an owner role with a limited set of operational powers.

The owner role can

• pause and resume purchases in either sale round;
• set or change each wallet’s purchase limit while a round is still running — a wallet without an approved limit cannot buy, and a limit can never be set below what that wallet has already bought;
• release M5L held by the vesting contract in excess of all participant allocations and the unsold reserve, to the treasury;
• recover tokens other than M5L that were sent to the vesting contract by mistake; and
• transfer the owner role to another address, in two steps.

The owner role cannot

• change the sale price, round allocations or round start and end times;
• change the vesting schedule or the TGE time;
• take back or reduce M5L already allocated to a participant;
• point the vesting contract at different sale contracts — that was configured once and is locked;
• mint M5L or alter the token contract in any way; or
• renounce ownership, which is disabled in the contracts.

Other behaviour to be aware of

• A sale round can be closed by anyone once its end time has passed, or earlier if the round sells out.
• Once both rounds are closed and the TGE has passed, anyone can trigger the release of any unsold sale allocation from the vesting contract to the treasury.
• An allocation is never guaranteed: a round may sell out, and your approved limit may be lower than you want.

5.Smart contract and technology risk

• Code risk. Smart contracts can contain defects that lead to loss of funds, even when their source code is published and verified. Verification proves that the published source matches the deployed bytecode; it is not an audit, and it is not a guarantee of correctness.
• Network risk. BNB Smart Chain can suffer congestion, outages, reorganisations, validator failures or protocol changes, any of which could delay or disrupt transactions.
• Interface risk. Websites, wallets and portals used to interact with the contracts can fail, be misconfigured or be compromised, even when the contracts themselves work as intended.
• Irreversibility. Assets sent to the wrong address or contract generally cannot be recovered.

6.Payment and stablecoin risk

Sale payments are made in USDT on BNB Smart Chain (contract 0x55d3...7955). Stablecoins carry their own risks, including loss of their peg, actions by their issuer or custodian such as freezing addresses, and regulatory intervention. You also need BNB to pay network fees, which change with network conditions.

7.Custody and wallet risk

M5L and the assets used to buy it are held in wallets you control. If you lose access to your wallet — its private keys, recovery phrase or key shares — or they are stolen, your assets are likely to be lost permanently, and neither M5DEX nor anyone else can restore access. M5Wallet’s 2-of-2 threshold signatures remove the single seed phrase that can be phished or stolen, but no wallet design protects you from approving a malicious transaction yourself.

8.Fraud, phishing and impersonation

Token projects attract scams. Common examples include fake websites and sale portals, impersonation of team members on Telegram and X, counterfeit tokens using the M5L name and logo, fake airdrops and “claim” pages, and messages offering a special price or a guaranteed allocation.

9.Regulatory and legal risk

The legal and regulatory treatment of digital assets, token sales and crypto trading products is uncertain and differs between countries. Laws, regulations or enforcement action — in your country or elsewhere — could restrict or prohibit the sale, holding, transfer or use of M5L or M5DEX products, require changes to how they operate, or make them unavailable to you. You are responsible for making sure your participation is lawful where you are.

10.Tax risk

Buying, holding, receiving, selling or using digital assets may have tax consequences, which vary by jurisdiction and may change. You are solely responsible for determining and paying any taxes that apply to you. Seek advice from a qualified tax professional.

11.Trading, copy-trading, swap and RWA risk

Each M5DEX ecosystem product carries its own risks, and may be governed by its own terms:

• Futures and leveraged trading. Leverage magnifies gains and losses. Small price moves can lead to rapid liquidation and the loss of all margin committed to a position.
• Copy trading and signals. Past performance of any trader or signal is not a reliable indicator of future results. Copied strategies can lose money, and your execution may differ from the trader you follow.
• Cross-chain swaps. A swap can execute at a worse price than quoted when markets move, and moving value between chains depends on third-party liquidity and routing that can fail or be delayed. Sending assets to an unsupported network or address can make them unrecoverable.
• Real-world assets. Tokenized real-world assets depend on the underlying asset, the parties that hold it, and the legal arrangements behind the token, any of which can fail.
• Spot trading. Prices can gap, orders may fill at unexpected prices in fast markets, and liquidity can disappear.

12.Project and execution risk

The usefulness of M5L depends on the continued development, operation and adoption of the M5DEX ecosystem. Planned features — including expanded M5L utility, governance, staking and Consta Blockchain — may be delayed, changed or never delivered. The project depends on its team, partners and service providers, and could be affected by the loss of key people, funding constraints, competition or technical setbacks. The Roadmap separates what is live from what is only planned.

13.Supply concentration risk

The entire maximum supply of 5,000,000,000 M5L was created once, at deployment. 2,250,000,000 M5L (45%) is held in the sale vesting contract for sale participants. The remaining 2,750,000,000 M5L (55%) is held outside the sale, and its allocation has not yet been published. Decisions about how and when that supply is distributed, together with the release of any unsold sale allocation to the treasury, could significantly affect the market for M5L.

14.Information risk

We work to keep the website, whitepaper and documentation accurate, but they may contain errors or become out of date. Where they differ from the deployed smart contracts, the contracts prevail. Always check critical figures — the contract address, sale price, purchase limits and vesting — directly on-chain.

15.Your acknowledgement

By acquiring M5L, participating in the sale or using M5DEX products, you confirm that you:

• have read and understood this Risk Disclosure and the Terms of Use;
• are acting on your own judgement and have taken independent advice where appropriate;
• are legally permitted to participate where you live; and
• can afford to lose the entire amount you commit.

Questions about this disclosure can be sent to hello@m5dex.com.