Legal Considerations

Disclaimer

Participation in the token sale as a form of investment carries risks. The KELTA team and organization believes that it is important that persons choosing to invest by purchasing KLT tokens should educate themselves fully on the token purchasing process and on the risks involved in token ownership. You are urged to inform yourself fully about the KELTA organization, the various risk factors involved with cryptocurrencies and the policies of payment service providers.

Forward-looking statements within this white paper are to be interpreted as mere estimations, and not legally binding language. KELTA’s position as an operator of a data centers is a well known and established fact. Any statement regarding future developments of the project should be read critically, and considered fully, before any token purchasing decisions are made. No language within the current document is legally binding. No promises and speculations are to be interpreted as an obligation from the KELTA team.

Jurisdiction

KELTA is legally registered as a Spoločnosť s ručením omedzeným (SRO) in the Republic of Slovakia. The KELTA data center legally operates in the Republic of Slovakia in accordance with all laws of the European Union. The KELTA token is interpreted as a utility token, in compliance with international financial regulations.

It is the responsibility of the potential token holder to inform his or herself regarding the local laws in his or her home jurisdiction. KELTA does not have any responsibility for any tax or other obligations the token holder may have in his or her country as a result for involvement in the KELTA project.

Risk Factors

1. Risk from hardware, software, or internet failures: Given the nature of KELTA’s business model and the types of services offered, the company depends on the functioning of software applications, computer hardware, the internet, and other computer infrastructures. The KELTA team has made, and continues to make, every effort possible to limit the risk of viruses, DDOS attacks, physical break-ins, and other mali- cious activities. Such disruptions may result in the suspension of KELTA operations.

2. Limitations of the smart contract and the Ethereum network: Smart contracts are still a new technology and are at an early stage of development. The experimental nature of smart contracts carries certain risks. While the best possible effort is made to audit the smart contract, the audit is not to be seen as any kind of warranty or assurance that the smart contract is without flaws. What’s more, the Ethereum network may be affected by malicious acts or sudden changes that may negatively affect the value of the KLT token.

3. The value of cryptocurrencies and fluctuation in mining rewards: The primary service offered by the KELTA data center is cryptocurrency mining hosting. This kind of service and the rewards from it are directly dependent on the price of various cryptocurrencies and the state of the economy, crypto or oth- erwise. Cryptocurrencies are often subject to volatile fluctuations in value. Before purchasing KLT tokens, all interested parties need to inform themselves of these risks. Market fluctuations are likely to affect the value of the KLT token.

4. Disclosure of information: Information gathered from KLT token holders and renters may be submitted to law enforcement, government officials, or to other third-parties, when KELTA is required to do so by law, subpoena, or court order. KELTA is in no way to be held responsible for any activities that it carries out in order to comply with international or domestic law.

5. Delay in updates: Any delay in the technical or physical updates described in this white paper can affect the KLT token value and are to be understood as a risk for token purchase.

6. Force Majeure: KELTA shall not be liable for any failure of or delay in the performance of this agreement for the period that such failure or delay is beyond their reasonable control, materially affects the perfor- mance of any of their obligations, and could not reasonably have been foreseen or provided against. For the purposes of this project, force majeure means extraordinary events or circumstances that could not be prevented by KELTA. Such circumstances shall include: acts of nature, mass civil disorder, armed con- flict, industrial actions, lockdowns, and strikes, epidemic health crisis, and prolonged shortage or failure of energy sources or communications.