Disclaimers / KYC / AML
PLEASE READ THIS ENTIRE SECTION AND DO NOT TAKE ANY ACTIONS UNTIL YOU FINISH READING IT. THIS WHITE PAPER IS A SUMMARY OF DIAMONDBACKEU OU’S DBK TOKEN SALE AND A BRIEF INTRODUCTION TO DIAMONDBACKEU OU’S PURCHASER’S PRINCIPLES.
IF YOU HAVE ANY DOUBT ABOUT PARTICIPATING IN THIS TOKEN SALE YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) AND IMMEDIATELY DISREGARD ANY OF THE INFORMATION CONTAINED IN THIS WHITEPAPER, OR NAVIGATE AWAY FROM THE DIAMONDBACK WEBSITE AND DO NOT BECOME A DBK TOKEN HOLDER.
DiamondBackEU OU, “DiamondBack Group” or “The Company” makes no warranties or representations as to the success of the development or implementation of such technologies and innovations, or achievement of any other activities as are noted in this white paper, and disclaim any warranties or representations implied by law or otherwise, to the extent permitted by law.
The information provided in this Whitepaper, the DiamondBack Group’s webpage, and the terms and conditions published by DiamondBack Group do not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities in any jurisdiction. The tokens to be issued by DiamondBack Group are not intended to be an investment in ordinary shares of DiamondBackEU OU or any other company. DBK Token holders do not receive any form of dividend or other revenue right.
DiamondBack Group, its directors, employees, contractors, and representatives have no responsibility or liability to any person or recipient (whether because of negligence, negligent misstatement or otherwise) arising from any statement, opinion, or information, expressed or implied, arising out of, contained in or derived from or omission from this paper. Neither DiamondBack Group nor its advisors have independently verified any of the information contained in this paper. Each recipient should rely solely on its own knowledge, investigation, judgment, and assessment of the matters which are the subject of this Whitepaper and any information which is made available in connection with any further inquiries and to satisfy itself as to the accuracy and completeness of such matters.
Regulatory authorities are scrutinizing businesses and operations associated with digital currencies and blockchain technology on a global basis. In that respect, regulatory investigations or actions may affect, limit or prevent DiamondBack Group from developing its operations in the future.
Purchase of DBK Tokens does not grant the purchaser any proprietary interest in DiamondBackEU OU, nor does it grant the purchaser any right to dictate DiamondBackEU OU’s actions, nor any other right that would generally attach to an investment. Purchase of DBK Token is offered as an outright purchase of the DBK Token itself, and is not offered as, nor warranted to be, an investment.
This Whitepaper, information provided on DiamondBack’s webpage and the terms and conditions published by DiamondBack thereon, any part thereof and any copy thereof must not be taken or transmitted to any country where distribution or dissemination of such documents/information is prohibited or restricted. Purchasers will need to represent that the purchase of tokens hereunder do not violate any rules or regulations in their country of residence or formation.
You should carefully consider all of the information in this document, including the following risk factors, before making any purchasing decision in relation to the Coin Offering. Our business, financial condition or results of operations could be materially and adversely affected by any of these risks. The price of DBK Coin could fall significantly due to any of these risks, and you may lose all or part of your purchase price. There are certain risks involved in our operations, many of which are beyond our control. You should consider any purchase of DBK Coin in light of the challenges we face, including those identified below:
Loss of purchase price: Participation in DiamondBackEU OU’s Coin Offering is subject to risk of loss of purchase price. Purchase of DBK Coin may not result in a valuable or usable token, and purchase of DBK Coin may result in partial or complete loss of purchase price.
Nascent market: The development of Blockchain technology and cryptocurrency is in its early stage, any adverse development in the cryptocurrency or Blockchain market could adversely affect our business and results from operations.
Blockchain technology adoption risk: Blockchain is a voluntary open network that can be used by anyone with devices connected to the internet. It allows every node to create immutable data, transparent record of transactions and peer-to-peer transactions in an efficient, secure and trust- free manner. Because of such advantages, Blockchain can be applied to various industries and activities, such as cryptocurrency, payments, financial services, IoT, cloud computing and cybersecurity, among others. However, there can be no assurance that such potential will be fully realized, if at all. If Blockchain technology cannot gain wide market acceptance in society, there may not be strong market demand for our DBK Coin, which relies on Blockchain technology to digitize the diamond assets, perform peer-to peer transactions and ultimately will end up having an adverse effect on the acceptance and utility of the DBK Coin.
Cryptocurrency adoption risk: Cryptocurrency (including Stablecoins) based upon Blockchain technology and its surrounding ecosystem is still in a relatively early development stage. Cryptocurrencies have only recently become selectively accepted as a means of payment for goods and services by many industries and the use of cryptocurrency by consumers to pay in such industries remains limited. In addition, there may be some jurisdictions which restrict the use of cryptocurrencies as a medium of exchange and the conversion between cryptocurrencies and fiat currencies. There is no assurance that usage of cryptocurrencies will continue to grow. As our business depends heavily on the public interest and acceptance of cryptocurrencies as a means of payment for goods and services, any lack of usage of, or fade in public interest for, cryptocurrencies or further efforts by jurisdictions to restrict the use of cryptocurrencies may adversely affect DBK Coin.
Limited transactability: Limited purchase and/or adoption of DBK Coin, such that the cost of Diamonds to substantiate* the limited number of DBK Coins issued may be greater than the consequent utility achieved therefrom. Furthermore, limited purchase of DBK Coins maycause exchanges and trading platforms to not wish to take on the burden of allowing DBK Coin to trade on their systems, resulting in limited options for sale of DBK Coins.
Illegal transaction risk: If purchase of DBK Coin is not in compliance with the laws of the country in which the purchaser resides, the purchaser bears the risk of punitive action in consequence of any such violations, including where such violation is committed in good faith but nevertheless in ignorance of the law.
Protocol breakdown: Any form of breakdown, forking, abandonment, or malfunction of the Ethereum protocols could impair or destroy the functionality of DBK Coins. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to Tokens and the Platform, including utility of Tokens for obtaining services, by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum protocol.
Software weakness: There is no guarantee that DBK Coins will work in an error-free, uninterrupted state. Furthermore, there is the inherent risk that DBK Coin, allied theories and supporting technologies could have vulnerabilities, weakness, or bugs. The presence of such bugs, weaknesses, or vulnerabilities could lead to a complete or partial loss of DBK Coin.
Mining attack: The dependence of DBK Coin and blockchain technology on a decentralized mining network poses an inherent risk that, should a successful mining attack be undertaken, the software computations essential to the blockchain might be compromised or not executed in proper sequence.
Wallet risk: Participants’ loss of access to a wallet storing DBK Coin will result in loss of access to the DBK Coins stored therein. A private key, or a combination of private keys, is necessary to control and dispose of tokens stored in your digital wallet or vault. Accordingly, loss of requisite private key(s) associated with your digital wallet or vault storing DBK Coin 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 digital wallet or vault service you use, may be able to misappropriate your tokens stored therein. Any errors or malfunctions caused by or otherwise related to the digital wallet or vault you choose to receive and store tokens, including your own failure to properly maintain or use such digital wallet or vault, may also result in the loss of your tokens. Additionally, your failure to precisely follow the procedures for buying and receiving tokens, including, for instance, if you provide the wrong address for receiving tokens, may result in the loss of your tokens.
Cybercrime: Cybercrime or unauthorized access to DiamondBackEU OU.’s systems may result in the loss, theft or inability to access tendered Ethereum. Cryptocurrency exchanges, wallets and to a lesser extent, the cryptocurrency Blockchain itself, may suffer from hacking and fraud risks, which may adversely erode user confidence in cryptocurrencies and reduce demand for our DBK Coin. For example, hackers can target cryptocurrency exchanges, wallets, and custodians to gain unauthorized access to the private keys associated with the wallet addresses where cryptocurrencies are stored. Cryptocurrency transactions and accounts are not issued by any type of government program and cryptocurrency transactions are permanent by design of the networks. Certain features of cryptocurrency networks, such as decentralization, the open source protocols, and the reliance on peer-to-peer connectivity may increase the risk of fraud or cyber- attack by potentially reducing the likelihood of a coordinated response. In addition, while cryptocurrencies use private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false cryptocurrencies. These risks may adversely affect the operation of the cryptocurrency network which would erode user confidence in cryptocurrencies, which would in turn negatively affect demand for our coin. Such instances would have an adverse impact on the ability to issue DBK Coins, or to develop the usability of DBK Coins.
Regulatory risk: Regulations affecting DiamondBackEU OU., and/or the participants, are subject to change by the governance structure of relevant jurisdictions. Regulatory changes are theoretically limitless in scope, including retroactive action. Regulatory changes could result in loss or appropriation of DBK Coins, or cessation of DiamondBackEU OU.’s business activities including support of DBK Coins. Therefore, we cannot assure you that we can execute our strategies effectively in this complex, evolving and dynamic regulatory environment. This may result in adversely affecting the acceptance and utility of the DBK Coin.
Risk of hard-fork: As the adoption of DBK Coins evolves, an upgrade to DBK Coins may be required (a hard-fork). If you decide not to participate in such upgrade, you may no longer be able to use your DBK Coins and any non-upgraded DBK Coins may lose their utility.
Risk of uninsured losses: Although the Diamonds will be insured, the DBK Coins themselves will be issued uninsured. In the event of loss of DBK Coins or loss of DBK Coins utility value, you have no recourse to any insurance, unless you have personally obtained private insurance with respect thereto.
Underbanking risk: Certain banks may not provide banking services or may cut off banking services to businesses that provide cryptocurrency related services or accept cryptocurrencies as payment, which could damage the public’s perception of cryptocurrencies and their utility. Certain companies that provide cryptocurrency related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Banks may refuse to provide bank accounts and other banking services to cryptocurrency related companies or companies that accept cryptocurrencies for various reasons, such as regulatory requirements and perceived compliance risks or costs. The difficulty of many businesses that provide cryptocurrency related services have and may continue to have, finding banks willing to provide them the bank accounts and other banking services, which may decrease the usefulness of cryptocurrencies as a payment mechanism thus harming the public’s perception in the future. Similarly, if banks were to close these accounts of many key businesses providing cryptocurrency related services, these events could materially and adversely affect the result of acceptance of the DBK Coin.
Unanticipated risks: Cryptographic tokens such as DBK Coins are a new and relatively untested technology. In addition to the risks set out in this section, there are other risks associated with your acquisition, storage, transfer and use of DBK Coins, including risks that cannot be foreseen. Such risks may further materialize as unanticipated variations or combinations of the risks set out in this section.
Lack of investment-grade* diamonds: As DiamondBack is not a diamond trading or manufacturing company, we do not have any diamond reserve on hand, we cannot guarantee to have constant and consistent source of investment-grade* diamonds, which could affect the issuance ability of the DBK Coin by DiamondbackEU OU. and could affect the utilization and acceptance of DBK Coin in the cryptocurrencies market. The price of DBK Coin might drop due to the lack of circulation in the global exchange market and the coin purchaser might suffer loss.
Grading of Diamonds: Variance in market sentiment may significantly affect sale price of diamond assets. Therefore, in the event of liquidation of Diamonds and the assets contained therein, funds realized will depend on the market at the time of selling. The coin purchaser could suffer loss from initial cost of purchase of DBK Coin.
Diamond Price fluctuation: As any precious commodity in the world, the price of a diamond will inevitably move up or down due to the supply and demand of the market, as well as the overall the world economy and financial market. Thus, the price of the DBK Coin will be influenced by diamond price fluctuation and a Purchaser may suffer loss in value. In such instance, DiamondBackEU OU as the coin issuer does not have the ability to stabilize the DBK Coin at US$1 if the price of the DBK Coin drops below US$1.
PURCHASES OF DBK COINS SHOULD BE UNDERTAKEN ONLY BY INDIVIDUALS, ENTITIES, OR COMPANIES THAT HAVE SIGNIFICANT EXPERIENCE WITH, AND UNDERSTANDING OF, THE USAGE AND INTRICACIES OF CRYPTOGRAPHIC TOKENS, INCLUDING ETHEREUM TOKENS, AND BLOCKCHAIN BASED SOFTWARE SYSTEMS. PURCHASERS SHOULD HAVE AN EXPERTISE AND EXPERIENCE WITH STORAGE AND TRANSMISSION MECHANISMS OF CRYPTOGRAPHIC TOKENS. THE COMPANY WILL NOT BE RESPONSIBLE IN ANY WAY FOR LOSS OF CRYPTOCURRENCY, ETHEREUM, DBK COINS OR ANY OTHER FUNDS RESULTING FROM ACTIONS TAKEN OR OMITTED BY PURCHASERS. IF YOU DO NOT HAVE RELEVANT EXPERIENCE OR EXPERTISE, THEN YOU SHOULD NOT PURCHASE DBK COINS. YOUR PARTICIPATION IN DBK COIN SALE IS DEEMED AS YOUR ACKNOWLEDGMENT THAT YOU SATISFY THE REQUIREMENTS MENTIONED IN THIS PARAGRAPH.
Participation in the DiamondBackEU OU’s Coin Offering is subject to regulatory oversight and compliance with DiamondBackEU OU’s prerequisite customer due diligence protocols. Issuance applications may be refused by DiamondBackEU OU in its own discretion, and DiamondBackEU OU is not required or expected to give reasons for any such refusal.
KYC / AML / ATF:
It is the policy of DiamondBack to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities by complying with all applicable Anti- Money Laundering, Anti-Terrorist Financing and Sanctions Regimes in Estonia, as well as various Sanction laws, regulation and regulatory guidance from the European Union, United Kingdom, United States of America, Canada, and United Nations, as applicable jurisdictions in which DiamondBack does business.
DiamondBack will comply with KYC/AML/ATF best practices and its own KYC/AML/ATF policies. The Company will ensure all its buyers pass vetting procedures.
DiamondBack has a KYC functional service built in the app and web-based Platform plus has a secondary service provider to supply AML/ATF functions beyond the basic KYC and OLFAC requirements. The secondary service provider will be MarkID, a 3rd party KYC/AML/ATF software solutions provider.
For details of the Company’s KYC / AML / ATF requirements, the coin buyer may request a copy of the Company’s KYC / AML / ATF Policy.