2.TECHNOLOGY AND SMART CONTRACT RISKS
a.
Smart contracts of V8COIN are decentralized self-executing contracts run on the Ethereum blockchain as per the built-in code. However, potential vulnerabilities or flaws in this code could be exploited by malicious actors, potentially resulting in the loss of assets or other unintended consequences. Smart contracts are often audited for flaws, and while these have not been found, further bugs may be lurking. It is important that users of the services take appropriate precaution when engaging in the use of the Services
b.
Technology Risk refers to the potential challenges and failures associated with blockchain technology and the Services. This includes risks related to the underlying Ethereum blockchain, possible issues with our Services, and other technical components of the system.
c.
Bugs and Vulnerabilities Risk is directly linked with the existence of the possible unnoticed defects or other weaknesses in the Website and / or App front-end users’ interface code.
d.
Our Services may be updated or modified over time to enhance functionality or address issues. However, these upgrades can introduce new bugs or vulnerabilities and may be incompatible with previous versions. Such changes could lead to service disruptions or unexpected protocol behavior.
e.
Delays or failures in updating our Services interface to address vulnerabilities, threats, or protocol changes can expose users to risks. For instance, if a security flaw is identified in how the interface interacts with smart contracts but isn't promptly fixed, users could face transaction manipulation or asset loss. Similarly, if significant protocol updates occur and the interface isn’t aligned, outdated functionality may lead to errors, failed transactions, or asset loss. Users should note that while blockchain and smart contract updates may occur rapidly, front-end interfaces via our Website and/or App may have separate, slower update cycles, potentially creating temporary risks.
f.
Our Services depends on oracles third-party services that deliver external data to the blockchain, such as price feeds for assets. If an oracle provides inaccurate, manipulated, or delayed information, it may cause smart contracts to execute incorrectly, potentially resulting in financial losses or unintended outcomes. Additionally, oracle failures or downtime can disrupt the protocol’s functionality, affecting transactions and overall system reliability. Users should be aware of the inherent dependency on oracles and the risks they introduce to blockchain operations.
g.
Our Services relies on the Ethereum blockchain, it is affected by the network’s limitations and potential congestion. During periods of high activity, gas fees can surge significantly, and transaction delays may occur. This could result in failed transactions, increased costs for users, or the inability to complete time-sensitive operations, such as liquidations or seizing market opportunities, within the required timeframe. Users should consider these risks when planning transactions on the platform.
h.
Our Services relies on multiple technical service providers and third-party integrations to operate effectively. The availability and performance of the Services depend on the seamless functioning of these vendors. Any disruptions, failures, or vulnerabilities in the services provided by these third parties could impact the functionality or accessibility of our Website and/or App interface, potentially leading to interruptions, reduced performance, or security issues. Users should be aware of the dependencies on external vendors and the risks they introduce to the platform.
i.
Security Risks:
i.
Hacking Risk involves the potential for malicious actors to exploit vulnerabilities or gain unauthorized access to our Website and/or App interface or components of the V8COIN protocol. Such breaches could result in theft of assets, data manipulation, or disruption of Services. Despite the implementation of security measures, no system is entirely immune to attacks, and users should remain cautious about this risk
ii.
Phishing Risk arises when users are tricked into providing sensitive information, such as private keys or login credentials, through fake websites, emails, or communications posing as V8COIN. These deceptive tactics can result in the loss of assets or compromised accounts. Users should verify the authenticity of all communications and only interact with official V8COIN platforms.
iii.
Exploitation Risk refers to the possibility of attackers discovering and exploiting bugs, vulnerabilities, or loopholes within the V8COIN protocol or our Website and/or App interface. Such incidents could lead to loss of funds, data corruption, or operational failures. While rigorous testing and audits are conducted, the dynamic nature of blockchain technology means new vulnerabilities may emerge over time.
j.
When using our Services, the primary security concerns revolve around potential attempts to compromise the interface or deceive users into approving harmful transactions. Although malicious actors cannot directly access or steal assets through our Website and/or App interface since no assets are stored there, they may employ various strategies, including but not limited to:
i.
Interface Manipulation: Changing the display to show inaccurate data.
ii.
Malicious Transaction Injection: Introducing harmful transaction details for users to inadvertently approve.
iii.
Phishing Attempts: Trying to obtain users' wallet private keys through deceptive practices.
iv.
Additional Tactics: Utilizing other methods to compromise user security.
k.
Although V8COIN is not an exchange, it may interact with decentralized exchanges (DEXs), aggregators, or other protocols. If these connected platforms are compromised, it could indirectly impact V8COIN users. For example, if a DEX used for liquidity or price determination is hacked, it could disrupt the functionality of our Website and/or App.
l.
Application Security Risks involve potential vulnerabilities within the Website and or its subdomains. Issues might include insecure data handling, insufficient encryption, or coding flaws that attackers could exploit. A security breach could grant unauthorized access to user information or the interface, potentially leading to unauthorized sign-ins or other malicious activities.
m.
Web Application Security Risks for our App, maintaining the integrity of the interface is crucial. This includes ensuring the accuracy of displayed information, securing the transaction signing process, and safeguarding against the injection of malicious code that could alter transaction details before approval. Users should always verify they are using the official interface and remain cautious of any unusual behavior or unexpected requests.
n.
API Integration Risks associated with API integrations involve the potential for compromised data from connected services to influence user actions or automated processes. Additionally, vulnerabilities in API connections could allow malicious data or commands to be injected into our Website and/or App interface.
o.
Phishing and Impersonation Risks There is a risk that malicious parties may create counterfeit websites, social media profiles, or other online presences that closely resemble the Website and/or App. These fake entities aim to deceive users into believing they are interacting with the legitimate platform, potentially leading to the disclosure of sensitive information like private keys or seed phrases, or the approval of malicious transactions. Users must verify the authenticity of websites, social media accounts, and communications to avoid falling prey to such impersonation schemes.
