I. General information about the risk
Bidda sp. z o.o. is the issuer of BIDDA tokens that have characteristics close to virtual currencies under the Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering of terrorist financing, and amending Directives (Official Journal of the European Union, L 156/43).
It means that the BIDDA token is a digital representation of value that is not issued or guaranteed by a central bank or a public authority, is not necessarily attached to a legally established currency and does not possess a legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and which can be transferred, stored and traded electronically;
Bidda sp.z o.o. cannot guarantee the value of the BIDDA token or the possibility of its practical use, in particular to pay for goods or services with it.
The potential use of BIDDA tokens is based on assumptions about the future, which is associated with the risk of unforeseen events and, as a consequence, there is the possibility of loss of value of BIDDA tokens or the inability to use them.
Bidda sp.z o.o.declares that:
1) BIDDA tokens may lose their value in part or in full;
2) BIDDA tokens may not always be transferable;
3) BIDDA tokens may not be liquid;
4) BIDDA tokens tokens may not be exchangeable against the good or service promised in White Paper, especially in case of failure or discontinuation of the project.
II. The detailed description of the risk factors
Each investment carries the risk of losing all or part of the invested funds. Taking each investment decision is connected with the need to assess the impact of risk on the result of the investment.
The most significant aspects of the risk related to investing in BIDDA tokens are listed below.
1. Exchange rate volatility risk (market risk) - there is a risk that the BIDDA token price will change to the investor's disadvantage. Tokens are particularly volatile. Single transactions can significantly affect their value. The exchange rate of tokens may be influenced by macroeconomic indicators characteristic of most instruments, i.e. interest rates, unemployment rate, economic growth, inflation level, political situation. The exchange rate of tokens is also significantly influenced by events closely related to the virtual currencies market, e.g. hacking attacks weakening the trust in entities providing services related to trading in virtual currencies.
2. Regulatory risk - a change in the law, as well as the adoption of an official position by competent supervisory authorities on the legal qualification of virtual currencies, may directly or indirectly affect the economic situation of investors, and thus the value of the BIDDA token.
3. Technological risk - according to the current state of science, it is nearly impossible to break the blockchain register, however, entities providing services related to trading virtual currencies are exposed to hacking attacks, which may result in the loss of all or part of BIDDA tokens. Repeated cyber attacks may also lead to loss trust in all technology and, consequently, the complete loss of value of virtual currencies
4. Liquidity risk - there is a risk that the BIDDA token cannot be sold without adversely affecting its price. There may also be a situation where the sale of BIDDA tokens will not be possible at all.
5. Risk of lack of guarantee - investing in BIDDA tokens is structurally different from a bank deposit and is not covered by any benefit guarantee system. In particular, an investment in BIDDA tokens is associated with the risk of losing all or part of the invested funds.
6. Operational risk – Bidda sp. z o.o. undertakes to adhere to the highest professional standards, to keep due dilligence and to do its utmost to achieve the goals specified in this White Paper. However, Bidda sp. z o.o. can not guarantee achieaving these goals. Therefore there is a risk of possibility of using inappropriate or defective systems, including human errors, technical failures and external events that may affect Bidda sp. z o.o. operations, and thus cause failure or discontinuation of the project.
The types of risks associated with investing in BIDDA tokens described in this document may exist alone, however, in some cases they may also accumulate due to the correlations between them. The investor should be aware of the possibility of a situation in which, as a result of a cause-and-effect sequence, several types of risk will materialize.
Bidda sp. z o.o. recommends that, before purchasing BIDDA tokens, the investor should get acquainted with the specificity of virtual currencies and assess whether the investment is appropriate for him, taking into account the risk level tolerated by him, the expected rate of return and his knowledge and investment experience.
Bidda sp. z o.o. do not encourage nor suggest investing in BIDDA tokens. Any acquisition or disposal of BIDDA tokens is a result of a conscious investor’s decision.
Investment in BIDDA tokens is not covered by the deposit guarantee schemes established in accordance with Directive 2014/49/EU of the European Parliament and of the Council nor is covered by the investor compensation schemes established in accordance with Directive 97/9/EC of the European Parliament and of the Council.