# 10. Risk Disclosure

Participation in the OWNAI protocol and its associated products involves inherent risks related to emerging technologies, market dynamics, regulatory ambiguity, and real-world infrastructure operations. Users should carefully review and understand the following risk categories before engaging.

#### 10.1. Technical Risks

As with any blockchain-based system, OWNAI is exposed to potential vulnerabilities in smart contracts, oracle inputs, validator performance, and protocol upgrades. Unexpected bugs, network failures, or cyber attacks may disrupt operations or lead to partial or total asset loss.

#### 10.2. Infrastructure Risks

The autonomous vehicles, robotics, and other automated assets underlying OWNAI products are subject to operational risks such as mechanical failure, accidents, insurance disputes, regulatory investigations, and fraud by third-party operators. These risks could impair revenue generation or legal enforceability of ownership rights.

#### 10.3. Market Risks & Liquidity

The value and utility of OWNAI product positions and the $OAN governance token may be affected by crypto market volatility, broader macroeconomic conditions, or platform-specific liquidity. Demand fluctuations, price instability, or sudden loss of market confidence may negatively impact user returns or exit options.

#### 10.4. Regulatory & Legal Uncertainty

Participation in income-generating automated asset products may fall under securities or financial product classifications depending on jurisdiction. Changes in national or international regulation, including securities law, AML/KYC rules, or tax regimes may restrict user participation, impose compliance burdens, or affect project viability.

#### 10.5. Governance and Execution Risks

While the OWNAI protocol follows a decentralized governance model, risks such as community disagreement, proposal manipulation, malicious voting coalitions, or unclear decision-making processes may impede execution and result in suboptimal or delayed development outcomes.

#### 10.6. Custody & Asset Structuring Risks

Assets may be held through legally recognized custodial or ownership structures that support participant rights. The enforceability of rights and claims by token holders depends on the jurisdictional robustness of the chosen structure, and their compliance with local laws. Loss of access, bankruptcy, or legal disputes at the entity or asset level may affect user rights.

#### 10.7. Force Majeure

External events such as geopolitical conflicts, pandemics, regulatory bans, or extreme weather events may disrupt operations, network connectivity, or broader project timelines.

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