Please read carefully these Terms and Conditions (these “Terms” and/or “Agreement”) before using the link https://zeon.network/app/register (the “Website”) or accepting the Zeon Tokens (“ZNC”), 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 ZNC. If you want to participate in the upcoming Private Sale (as further described in Exhibit A), you should carefully read these Terms and accept them. Any person interested in participating in this Private Sale is strongly advised to carefully read also Exhibit B of these Terms. If you do not agree with these Terms, you shall not use the Website or accept ZNC Tokens.
The parties to this agreement are GT TRADE s.r.o. (“Company”), a corporation registered in Czech Republic, and you, a purchaser familiar with blockchain software systems (“Buyer”, “User”, “Participant”, “You” or “Your”).
You and Company agree as follows:
By visiting the Website and transferring Ether (ETH) to the Company Ethereum wallet the User understands and accepts that the User makes a contribution for the development of the Zeon Project (“Contribution”), as further described in the Zeon Project Whitepaper (“Whitepaper”)(“http://zeon.network/whitepaper.pdf ”). For the Whitepaper and/or further information on the Zeon Project (“Project”), visit: https://zeon.network.The information contained in the Whitepaper and on the website are of descriptive nature only, are not binding and do not form part of the Terms, unless explicitly referred to herein.
The User understands and accepts that while the individuals and entities, including the Company, assigned to this task will make reasonable efforts to develop and complete the Project, it is possible that such development may fail and User’s Zeon tokens (“ZNC” or “ZNC tokens”) become useless and/or valueless due to technical, commercial, regulatory or any other reasons.
The User is also aware of the risk that even if all or parts of the Project are successfully developed and released in full or in parts, due to a lack of public interest, the Project could be fully or partially abandoned, remain commercially unsuccessful or shut down for lack of interest, regulatory or other reasons. The User therefore understands and accepts that the transfer of ETH to the Company Ethereum wallet and creation of ZNC by the Ethereum Platform carry significant financial, regulatory and/or reputational risks (including the complete loss of value of created ZNC if any, and attributed features of the Project).
By transferring ETH to the Company Ethereum wallet, the User expressly agrees to all of the terms and conditions set forth in this document and confirms to have carefully read and understood the ZNC Creation Procedures and Specifications (Exhibit A) and Risks, relating to ZNC (Exhibit B). User furthermore confivvvvvvvrms and understands all the merits, risks and any restrictions associated with cryptographic tokens, cryptocurrencies and Blockchain-based systems, especially Ethereum Platform, as well as know how to manage these digital technologies and have necessary and relevant experience and knowledge to deal with cryptographic tokens, cryptocurrencies and Blockchain-based systems to competently enter into this Agreement and contribute into a Company by transferring ETH to Company Ethereum wallet for the development of the Project.
This document does not constitute a prospectus of any sort, is not a solicitation for investment and does not pertain in any way to an initial public offering or a share/equity offering and does not pertain in any way to an offering of securities in any jurisdiction.
By transferring ETH to the Company Ethereum wallet andor receiving ZNC, no form of partnership, joint venture or any similar relationship between the Users and the Company andor other individuals or entities involved with the deployment of System and the setting up of the Project is created.
The User understands and accepts that the development and execution of the Project will be assigned to a third party contractors, by releasing the amount of contributed ETH to the Ethereum wallet of the Company. The Company has the right to engage subcontractors to perform the entire or partial development and execution of the Project. The scope of the development work will be triggered by the amount of Contributions received during the ZNC Creation Period.
The User understands and accepts that for the purpose of the development and execution of the Zeon Project, the Company receives the full amount of ETH transferred to the Company Ethereum wallet during the ZNC Private Sale. This amount covers expenses, charges and other costs that may arise by the Company and/or its subcontractors as part of the development and execution of the Project. It remains at Company’s sole discretion to decide how to allocate the funds in order to develop and execute the Project.
The User understands and accepts that the User may not have any expectation of influence over governance on the Project.
The User understands and accepts that the Project will need to go through substantial development works as part of which it may become subject of significant conceptual, technical and commercial changes before release. User understands and accepts that as part of the development, an upgrade of the ZNC may be required (hard-fork of ZNC) and that, if User decides not to participate in such upgrade, he may no longer use his ZNC and that non-upgraded ZNC may lose their functionality in full.
Buyer understands and agrees that Buyer is subject to and bound by this Agreement by virtue of Buyer’s purchase of ZNC Tokens. This Agreement shall be effective and binding on the Parties when Buyer clicks the check box to indicate that Buyer has read, understands and agrees to the terms of this Agreement and successfully submits the KYC application form on the official https://zeon.network/app/register website (the “Website”); Buyer agrees to be bound on this basis, and confirms that Buyer has read in full and understands this Agreement and the terms on which Buyer is bound.
By transferring ETH to the Company Ethereum Wallet and receiving ZNC Tokens, the User represents and warrants that:
ZNC Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the Zeon Platform. Company does not guarantee and is not representing in any way to Buyer that ZNC Tokens have any rights, uses, purpose, attributes, functionalities or features.
As mentioned above, ZNC Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied. Although ZNC Tokens may be tradable, ZNC is not intended to constitute a digital currency, commodity, security, financial instrument or any other form of investment in any jurisdiction. This is not a solicitation for investment and does not constitute an offer of securities to the public. Czech Republic law does not require the prior approval, notification, registration or licence of ZNC or of the Terms of ZNC Token Private Sale.
Company’s Use of Proceeds
Buyer acknowledges and understands that the proceeds from the sale of ZNC Tokens will be utilized by Company in its sole discretion.
Not a purchase of Zeon Platform Tokens
ZNC Tokens purchased under this Agreement are not tokens on the Zeon Platform. Buyer acknowledges, understands and agrees that Buyer should not expect and there is no guarantee or representation made by Company that Buyer will receive any other product, service, rights, attributes, functionalities, features or assets of any kind whatsoever, including, without limitation, any cryptographic tokens or digital assets now or in the future whether through receipt, exchange, conversion, redemption or otherwise.
Not a Claim, Loan or Ownership Interest
The purchase of ZNC Tokens: (a) does not provide Buyer with rights of any form with respect to the Company or its revenues or assets, including, but not limited to, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property), or other financial or legal rights; (b) is not a loan to Company; and (c) does not provide Buyer with any ownership or other interest in Company.
Not an Offering of Securities, Commodities, or Swaps
The sale of ZNC Tokens and ZNC Tokens themselves are not securities, commodities, swaps on either securities or commodities or a financial instrument of any kind. Purchases and sales of ZNC Tokens are not subject to the protections of any laws governing those types of financial instruments. This Agreement and all other documents referred to in this Agreement including the Whitepaper do not constitute a prospectus or offering document, and are not an offer to sell, nor the solicitation of an offer to buy an investment, a security, commodity, or a swap on either a security or commodity.
Not an Investment
Buyer should not participate in the ZNC Token Private Sale or purchase ZNC Tokens for investment purposes. ZNC Tokens are ZNC are not intended to constitute a digital currency, commodity, security, financial instrument or any other form of investment in any jurisdiction. This is not a solicitation for investment and does not constitute an offer of securities to the public. Czech Republic law does not require the prior approval, notification, registration or licence of ZNC or of the Terms of ZNC Token Private Sale.
Buyer acknowledges, understands and agrees that Buyer should not expect and there is no guarantee or representation or warranty by Company that: (a) the Zeon Software will ever be adopted; (b) the Zeon Software will be adopted as developed by Company and not in a different or modified form; (c) a blockchain utilizing or adopting the Zeon Software will ever be launched; and (d) a blockchain will ever be launched with or without changes to the Zeon Software and with or without a distribution matching the fixed, non-transferable ZNC Token balances. Furthermore, ZNC Tokens will not have any functionality or rights on the Zeon Platform and holding ZNC Tokens is not a guarantee, representation or warranty that the holder will be able to use the Zeon Platform, or receive any tokens utilized on the Zeon Platform, even if the Zeon Platform is launched and the Zeon Software is adopted, of which there is no guarantee, representation or warranty made by Company.
Company retains all right, title and interest in all of Company’s intellectual property, including, without limitation, inventions, ideas, concepts, code, discoveries, processes, methods, software, compositions, formulae, techniques, information and data, whether or not patentable, copyrightable or protectable in trademark, and any trademarks, copyright or patents based thereon. Buyer may not use any of Company’s intellectual property for any reason without Company’s prior written consent.
No Ownership, Revenue or Governance Rights
In particular, User understands and accepts that ZNC do not represent or constitute any ownership right or stake, share or security or equivalent rights nor any right to receive future revenues, shares or any other form of participation or governance right in or relating to the Project and/or the Company.
The Company is offering 60% (30 billions ZNC) of total estimated token supply of total estimated token supply of 50 billions ZNC in Private and Public Token Sale. The remaining supply (40%) is to be distributed at Company’s discretion – a non-binding proposal of the token distribution is presented in the Whitepaper and Exhibit A.
Company may provide guidance on the expected launch date of the Zeon token (ZNC) but due to the uncertain nature of software development and pioneering aspects of the Zeon Project, the actual launch date may differ from Company’s expectations or announcements.
The User understands and accepts that all Contributions for ZNC are final and may not be reversed. Contributions are non-refundable. By contributing for ZNC, the User acknowledges that he has no right to request a refund for any reason, and that the User will not receive money or other compensation for any ZNC that is not used or remains unused.
Notwithstanding the preceding paragraph Company expressly informs you that the Creation Period 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 ZNC is dependent on fluctuations in the financial market which cannot be controlled by the Company and which may occur within the withdrawal period.
Company does not warrant that Your Contribution will be suitable for Your purposes (or any purpose) and is offered to You without any warranty whatsoever, on an “as-is” basis. Company shall not be liable for any losses, damages, claims, economic damages, or any other money amounts related to Your Contribution, to the maximum extent permitted by law, in tort, contract, negligence or any other theory of law.
You agree not to hold Company responsible for issues related to the Ethereum blockchain, Ethereum wallet, ZNC, Zeon Platform, or any other related components, including failure to complete any aspect of the project in line with forward-looking technical plans or technical limitations of the project that reduces or completely eliminates the utility of ZNC to You.
You specifically agree that Company (including its directors, officers, employees, and subcontractors) shall not be responsible for any of the following risks:
No Rights, Functionality or Features
ZNC Tokens have no rights, uses, purpose, attributes, functionalities or features, express or implied. ZNC Tokens do not entitle holders to participate on the Zeon Platform, even if the Zeon Platform is launched and the Zeon Software’s development is finished and the Zeon Software is adopted and implemented.
Reliance on Third-Parties
Even if completed, the Zeon Software will rely, in whole or partly, on third parties to adopt and implement it and to continue to develop, supply, and otherwise support it. There is no assurance or guarantee that those third parties will complete their work, properly carry out their obligations, or otherwise meet anyone’s needs, all of might have a material adverse effect on the Zeon Software and Zeon Platform.
Exchange & Counterparty Risks
Buyer is not allowed to send ETH to the Company Ethereum Wallet from an exchange or an account that Buyer does not control. Zeon Tokens will be allocated to the Buyers Ether account which Buyer is obligated to open.
The development of the Zeon Platform may be abandoned for a number of reasons, including, but not limited to, lack of interest from the public, lack of funding, lack of commercial success or prospects, or departure of key personnel.
Lack of Interest
Even if the Zeon Platform is finished, adopted and launched, the ongoing success of the Zeon Project relies on the interest and participation of third parties. There can be no assurance or guarantee that there will be sufficient interest in the Zeon Project.
Risk associated with other applications
The User understands and accepts that the Zeon Project may give rise to other, alternative projects, promoted by unaffiliated third parties, under which ZNC will have no intrinsic value.
Uncertain Regulatory Framework
The regulatory status of cryptographic tokens, digital assets and blockchain technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether governmental authorities will regulate such technologies. It is likewise difficult to predict how or whether any governmental authority may make changes to existing laws, regulations and/or rules that will affect cryptographic tokens, digital assets, blockchain technology and its applications. Such changes could negatively impact ZNC Tokens in various ways, including, for example, through a determination that ZNC Tokens are regulated financial instruments that require registration. Company may cease the distribution of ZNC Tokens, the development of the Zeon Platform or cease operations in a jurisdiction in the event that governmental actions make it unlawful or commercially undesirable to continue to do so.
Risk of Government Action
As noted above, the industry in which Company operates is new, and may be subject to heightened oversight and scrutiny, including investigations or enforcement actions. There can be no assurance that governmental authorities will not examine the operations of Company and / or pursue enforcement actions against Company. Such governmental activities may or may not be the result of targeting Company in particular. All of this may subject Company to judgments, settlements, fines or penalties, or cause Company to restructure its operations and activities or to cease offering certain products or services, all of which could harm Company’s reputation or lead to higher operational costs, which may in turn have a material adverse effect on the ZNC Tokens and/or the development of the Zeon Project.
a) vulnerabilities in underlying blockchain technology, e.g. the Ethereum platform, or,
b) problems with the Ethereum blockchain that cause You to not receive Your ZNC or,
c) theft or loss of Your private keys or,
d) vulnerabilities of the cryptographic foundations of Waves (upon which ZNC may rely) or,
e) bugs or unintended operation of ZNC due to Company’s error, mistake, or inadvertence or,
f) wallet software that You use to manage ZNC may contain bugs or operate in a way that results in You losing access to ZNC;
g) no securities regulatory authority has expressed an opinion on the ZNC Token. ZNC Token may at a later time be considered a security to the sole discretion of the regulatory authority;
h) cryptographic tokens are a new and untested technology. There are several risks including those that Company cannot anticipate.
There may be laws that apply to Your Pre-Order in Your jurisdiction. You shall be solely responsible for compliance with local law and shall indemnify Company against any liability (including the costs of defending against claimed liability) incurred as a result of Your non-compliance.
Buyer, being either (i) a natural person wishing to become a Participant and being a citizen, national, resident or having a similar connecting factor to; or (ii) a juridical person wishing to become a Participant and being incorporated, registered or effectively managed and controlled form or in: a country, jurisdiction or territory where the token offer or the holding and use, of the token and / or virtual currencies or other tokens at any other moment in time is prohibited by laws, regulations or other practices and policies in the said country, jurisdiction or territory, are not allowed to participate in the ZNC Token Private Sale or Public Token Sale, which is taken to include, but is not limited to U.S.A., China, Singapore or any other jurisdictions where the aforementioned are prohibited. This shall include any person representing or acting on behalf of such restricted prohibited participant/s in any manner or capacity whether openly or covertly.
Buyer hereby consent to the collection, processing and storage of any personal data by the Company according to the General Data Protection Regulation (‘GDPR’), the Data Protection Act, (‘DPA’) and Processing of Personal Data (Electronic Communication Sector) Regulations. Any personal data collected will be used solely for the purpose of KYC and risk assessment process and as part of the contribution process, to communicate to Participants information on the Zeon.
Buyer acknowledges, understands and agrees that: (a) the purchase and receipt of ZNC Tokens may have tax consequences for Buyer; (b) Buyer is solely responsible for Buyer’s compliance with Buyer’s tax obligations; and (c) Company bears no liability or responsibility with respect to any tax consequences to Buyer. All factual and potential tax obligations are the concern of the User and Company is under no conditions bound to compensate for potential tax obligations. The price paid for the ZNC Tokens is exclusive of all applicable taxes.
Anti-Money Laundering; Counter-Terrorism Financing
To the extent required by applicable law, Buyer complies with all anti-money laundering and counter-terrorism financing requirements.
Neither Buyer, nor any person having a direct or indirect beneficial interest in Buyer or ZNC Tokens being acquired by Buyer, or any person for whom Buyer is acting as agent or nominee in connection with ZNC Tokens, is the subject of sanctions administered or enforced by any country or government (collectively, “Sanctions”) or is organized or resident in a country or territory that is the subject of country-wide or territory-wide Sanctions.
The funds, including any fiat, virtual currency or cryptocurrency, Buyer uses to purchase ZNC Tokens are not derived from or related to any unlawful activities, including but not limited to money laundering or terrorist financing, and Buyer will not use the ZNC Tokens to finance, engage in, or otherwise support any unlawful activities.
All payments by Buyer under this Agreement will be made only in Buyer’s name, from a digital wallet not located in a country or territory that has been designated as a “non-cooperative country or territory” by the European Union regulations as amended, as such regulations may be amended from time to time.
Upon Company’s request, Buyer will immediately provide to Company information and documents that Company, in its sole discretion, deems necessary or appropriate to comply with any laws, regulations, rules or agreements, including without limitation judicial process. Such documents include, but are not limited to, passport, driver’s license, utility bills, photographs of associated individuals, government identification cards, or sworn statements. Buyer consents to Company disclosing such information and documents in order to comply with applicable laws, regulations, rules or agreements. Buyer acknowledges that Company may refuse to distribute ZNC Tokens to Buyer until such requested information is provided.
To the maximum extent permitted by applicable law, Company shall not be liable, directly or indirectly, for any indirect, economic, special, incidental, exemplary, consequential, or punitive damages, lost profits, lost revenue, lost earnings, lost tokens, corrupted wallet data, failure to realize any savings, gains, losses or any other damage or loss to You. If you are a resident from a “Restricted Country”, you are acquiring the Tokens at your own risk and under no circumstances shall the Company be held responsible for such purchase. Notwithstanding any other provision of this agreement, Company’s liability to You shall be limited to the lesser of a) $100 USD (at the time of purchase) of any consideration paid for Your ZNC.
Any dispute related to this agreement shall be governed by the laws of Czech Republic, and heard in the courts of the Czech Republic.
If any provision of this agreement is deemed to be unenforceable or unlawful by a court or competent authority then the offending provision shall be struck out and the remaining provisions shall continue in effect.
Company shall not be liable for any failure or delay in the performance of its obligations (or Zeon Software) if the reason for the failure or delay is an issue with the Ethereum blockchain or any other event or circumstance beyond Company’s control.
You may provide notice to Company by contacting [email protected].
This is the entire agreement between the parties with respect to ZNC, or any other aspect of the Zeon Software and supersedes any other understanding, representations or agreements between the parties.
Company will create 50 billions ZNC, a certain percentage of which will be sold during the Private Sale phase of ZNC Creation Period according to the specifications below.
Number of ZNC allowed for distribution by one party is limited to a minimum of 10 ZNC and a maximum of 500.000.000 ZNC.
The minimum contribution amount in this Private Sale is 5 ETH. Contributors are entitled to a special bonus allocation depending on the level of their contribution as displayed whitepaper.
Price of one ZNC is $ 0.0005 USD.
The amount of purchased ZNC Tokens in this Private Sale is calculated based on ZNC token value equivalent to 0.0005 US$ and increased by FREE ZNC bonus tokens. The value of the Purchase Amount shall be deemed in Ether.
Anyone who wants to receive ZNC shall register on the Website using their real name and email address and other requested information, as well as have Ether in any wallet, except exchange wallet. You may only receive ZNC via your Account and to your own Ethereum Wallet. In case you don’t have a Ethereum Wallet, please set up your wallet here: https://www.ethereum.org /. To make contribution for ZNC you shall send an amount of Ether, which is equal to an amount of ZNC that you would like to receive to the Zeon Ethereum Wallet.
Before transferring ETH to Company Ethereum Wallet and receiving ZNC, you’ll need to submit identity details to pass KYCAMLCFT (Know Your Customer / Anti-Money Laundering / Countering the Financing of terrorism) checks.
ZNC is not a security of any kind. ZNC is a token for participation and use of the Company Network and Platform and does not confer ownership, equity or profit rights of the Company, the Network or the Zeon Project. ZNC accepted by you hereunder may be transferred by you to any person or entity at any time after the ZNC Creation Period.
The received means for ZNC 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 Whitepaper.
Important Note: As noted elsewhere in these Terms, ZNC are not being structured or sold as securities or any other form of investment product. Accordingly, none of the information presented in this Exhibit B 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 B, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting from such information.
By accepting, holding and using ZNC 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 ZNC Tokens stored in your Ethereum digital wallet or vault. Accordingly, loss of requisite private key(s) associated with your Ethereum digital wallet or vault storing ZNC 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 ZNC 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 ZNC 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 ZNC 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 the Whitepaper, 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 Pre-sale to fund the deployment of the Network, as described further in Exhibit A. The means received from the token pre-sale 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 token sale, 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 ZNC are a new and untested technology. In addition to the risks included in this Exhibit B, there are other risks associated with your acceptance, holding and use of ZNC, 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 Zeon Project 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 Zeon, 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.
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 B.