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Legal

Nature of the Perpetual Airdrop Tokens

The Perpetual Airdrops Tokens are utility tokens as per the Swiss Financial Market Supervisory Authority (FINMA)'s ICO guidelines. The initial Perpetual Airdrop Tokens are issued as utility tokens and are to be used and accepted solely to take part in the Perpetual Airdrop experiment, whereby Perpetual Airdrop Token holders may receive future random airdrops by virtue of holding Perpetual Airdrop Tokens. 

 

A Perpetual Airdrop Token does not represent a security or other financial instrument: 

 

Perpetual Airdrop Tokens do not constitute securities or financial instruments within the meaning of Swiss Financial Market Infrastructure Act (FMIA), the Swiss Financial Services Act (FinSA) and EU Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 relating to markets in financial instruments. Perpetual Airdrop Tokens confer no direct or indirect right to the Perpetual Airdrop Association’s capital or income, nor do they confer any governance right within the Perpetual Airdrop Association. Perpetual Airdrop Tokens serve no investment purpose. 

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A Perpetual Airdrop token is not a payment token or an electronic currency: 

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Perpetual Airdrop Tokens do not serve as payment tokens and may not, now or in the future, be accepted by the Perpetual Airdrop Association (or any other third-party) as a means of payment or as a means of money or value transfer. Further, Perpetual Airdrop Tokens do not represent a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions and Perpetual Airdrop Tokens are not accepted outside the Perpetual Airdrop system. Perpetual Airdrop Tokens are not electronic currencies within the meaning of EU Directive 2009/110/EC of the Perpetual Airdrop Experiment White Paper 17 

 

European Parliament and of the Council of 16 September 2009 relating to access to and pursuit of the business of electronic currency institutions and the Perpetual Airdrop Association is not a payment service provider within the meaning of EU Directive N° 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market. The sole utility of a Perpetual Airdrop Token is to participate in airdrops by virtue of holding Perpetual Airdrop Tokens. 

 

The perpetual airdrop association does not operate a lottery within the meaning of the Swiss money games act. Participation in the initial airdrop is purely voluntary and not subject to any obligation by the applicant to pay any amounts as part of the application or to enter into an agreement to purchase or sell anything. 

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The perpetual airdrop association is neither subject to the supervision of the Swiss financial market supervisory authority (FINMA), nor of the Swiss federal gaming board or Swiss gambling supervisory authority. 

Disclaimer of Liability

To the maximum extent permitted by applicable laws, regulations, and rules, neither the perpetual airdrop tokens nor any of its members, directors, consultants, agents, or professional advisers shall have any liability whatsoever (including for damages, losses, liabilities, costs or expenses of any kind, whether direct or indirect consequential, compensatory, incidental, actual, exemplary, punitive or special) towards initial airdrop applicants and perpetual airdrop token holders. Neither the perpetual airdrop association, any of its team members who have worked, in any way, on the experiment to develop the airdrop tokens, nor any service provider shall be liable for any kind of direct or indirect damage or loss whatsoever which you may suffer in connection with accessing this whitepaper, the website at perpetualairdrop.com. Or any other websites or materials published by the perpetual airdrop association. 

Indemnification

Perpetual Airdrop Token holders agree to indemnify, defend, and hold the Perpetual Airdrop Association harmless from any and all claims, damages, liabilities, costs, and expenses (including reasonable attorneys' fees and costs), arising from or relating to the Perpetual Airdrop Experiment, and in particular as a result of any breach by any such holder of their representations and warranties. 

Representations and Warranties

The Perpetual Airdrop Association does not make or purport to make, and hereby disclaims, any representation, warranty or undertaking in any form whatsoever to any person or entity, including any representation, warranty or undertaking in relation to the accuracy and completeness of any information set out in this whitepaper and on the website at perpetualairdrop.com. 

 

By receiving and/or holding Perpetual Airdrop Tokens, each Initial Airdrop applicant and subsequent Perpetual Airdrop Token holder represents and warrants that it is: 

  • agreeing and acknowledging that the Perpetual Airdrop Tokens do not constitute securities, financial instruments, financial products, means of payment, investments, claims, rights or other assets in any form in any jurisdiction; 

  • agreeing and acknowledging that no regulatory authority has examined or approved any of the information set out in this whitepaper, and that no such action has been or will be taken under the laws, regulatory requirements, or rules of any jurisdiction; 

  • agreeing and understanding that receiving and/or holding Perpetual Airdrop Tokens does not imply any elements of a contractual relationship or binding legal obligation, and that participation in the Perpetual Airdrop experiment is purely voluntary and not subject to any obligation to pay any amounts or to enter into an agreement to purchase or sell anything; 

  • receiving and/or holding the Perpetual Airdrop Tokens for own account; 

  • agreeing to hold the Perpetual Airdrop Tokens at its own risk; 

  • at least 18 years old and has the enjoyment of its civil rights; 

  • not a citizen or resident (tax or otherwise) or green card holder of the United States of America, or a citizen or resident of China, the Republic of South Africa or Cayman Islands; 

  • not a person under sanctions enacted In Switzerland, the United Nations, the European Union or In the United States of America; 

  • not, and never has been, convicted of any crime; 

  • solely responsible for acquiring professional (legal, financial, tax or similar) advice in the relevant jurisdictions; 

  • having a basic degree of understanding of the operation, functionality, usage, storage, transmission mechanisms and other material characteristics of blockchain-based tokens (such as Ethereum ERC-20 tokens, wallets or other related token storage mechanisms, blockchain technology and smart contract technology; 

  • not using Perpetual Airdrop Tokens for any Illegal purpose; 

  • understanding that there is no warranty, guarantee, or liability with regards to Perpetual Airdrop Tokens, express or implied, to the extent permitted by law; 

  • and 

  • complying with local, state, and national laws and regulations where receiving and/or holding Perpetual Airdrop Tokens. 

Risk Factors

Receiving and/or acquiring Perpetual Airdrop Tokens and storing them involves various risks. Therefore, and prior to receiving and/or acquiring Perpetual Airdrop Tokens, any user should carefully consider the risks, costs, and benefits of receiving and/or acquiring Perpetual Airdrop Tokens in the context of the present experiment and obtain any independent advice in this regard. 

 

Prospective participants should ensure that they fully understand the nature of the Perpetual Airdrop Tokens and the extent of their exposure to risks associated with the Perpetual Airdrop Tokens. 

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By receiving, holding or using any perpetual airdrop tokens, you expressly acknowledge and assume the following potential risks and liabilities associated with the use of the perpetual airdrop tokens: Perpetual Airdrop Experiment White Paper 19 

 

Risk of losing access to Perpetual Airdrop Tokens 

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A private key, or a combination of private keys, is necessary to control and dispose of Perpetual Airdrop Tokens stored in your digital wallet. Accordingly, loss of requisite private key(s) associated with your digital wallet or vault storing Perpetual Airdrop Tokens will result in the loss of such Perpetual Airdrop 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 Perpetual Airdrop Tokens. Any errors or malfunctions caused by or otherwise related to the digital wallet chosen to receive and store Perpetual Airdrop Tokens, including your own failure to properly maintain such digital wallet, may also result in the loss of Perpetual Airdrop Tokens. Additionally, failure to follow precisely the procedures set forth for receiving or claiming Perpetual Airdrop Tokens, including, for Instance, If you provide the wrong address to receive Perpetual Airdrop Tokens, or provide an address that Is not ERC-20 compatible, may also result In the loss of the Perpetual Airdrop Tokens. 

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Risks Associated with the Ethereum Protocol

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Perpetual Airdrop Tokens are based on the Ethereum protocol. Therefore, any malfunction, unplanned function, or unexpected operation of the Ethereum protocol may cause Perpetual Airdrop Tokens to malfunction or operate in a way that is not expected. 

For more information on the Ethereum protocol, see http://www.ethereum.org 

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Risks Associated with the Chainlink’s VRF V2 technology. 

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Chainlink VRF (Verifiable Random Function) uses verifiable random functions to generate randomness that is verifiable on-chain. Chainlink VRF ensures that smart contract access randomness without compromising on security, by generating a random number upon every request for randomness with cryptographic proof of the number generation. While the Perpetual Airdrop Association follows Chainlink's security recommendations, there is a risk that miners or validators manipulate randomness generation. 

 

Legal risk and risk of adverse regulatory intervention in one or more jurisdictions 

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The Perpetual Airdrop Tokens may be impacted by the passing of restrictive laws, the publication of restrictive or negative opinions, the issuing of injunctions by national regulators, the initiation of regulatory actions or investigations, including but not limited to restrictions on the use or ownership of digital tokens such as the Perpetual Airdrop Tokens, which may prevent or limit development of the Perpetual Airdrop Token experiment. 

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Given the lack of token qualifications in most countries, each holder is strongly advised to carry out a legal and tax analysis concerning the purchase and ownership of the Perpetual Airdrop Tokens according to their nationality and place of residence, knowing that the people eligible to receive (as an airdrop) and/or acquire the Perpetual Airdrop Tokens are limited as mentioned above in the “III. Token Design”. 

 

Risk of hacking and security weaknesses 

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Hackers or other malicious or criminal groups or organizations may attempt to interfere with the availability of the Perpetual Airdrop Tokens in several ways including, but not limited to, denial of service attacks, Sybil attacks, mystification, surfing, malware attacks, or consensus-based attacks. 

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Risk of security weaknesses in the Perpetual Airdrop system’s core infrastructure software 

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The Perpetual Airdrop core software is based on open-source software. There is a risk that the Perpetual Airdrop Association, or other third parties, may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructure elements of the Perpetual Airdrop experiment, by interfering with the use of, or causing loss of, Perpetual Airdrop Tokens. 

 

Risk relating to public data 

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Perpetual Airdrop Token holders should be aware that the holding of Airdrop Tokens Is registered In the Ethereum blockchain and may be visible to the public. The Ethereum blockchain is neither the property nor under control of the Perpetual Airdrop Association or any other party related to Airdrop Tokens. Information available on the Ethereum blockchain may be exploited or miss-used in, as of today, unforeseen ways. 

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Risk of weakness or exploitable breakthrough in the field of cryptography 

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Advances in cryptography, or technical advances such as the development of quantum computers, may present risks, which could result in the theft or loss of the Perpetual Airdrop Tokens. 

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Risk of a Perpetual Airdrop Tokens mining attack 

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As with other decentralized cryptographic tokens based on the Ethereum protocol, the blockchain used for the Perpetual Airdrop experiment is vulnerable to mining attacks, including but not limited to, dual-expense attacks, powerful mining attacks, selfish mining attacks, and critical competition attacks. Any successful attack poses a risk to the Perpetual Airdrop experiment, the expected performance and sequencing of markets, and the expected performance and sequencing of Ethereum contract calculations. Despite the best efforts of the Perpetual Airdrop Association, the risk of known or new mining attacks exists. 

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Risk of a Tight Market for Perpetual Airdrop Tokens 

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There are currently no exchanges or trading facilities on which the Perpetual Airdrop Tokens can be traded. If such exchanges or trading facilities do develop, they will probably be relatively new and subject to poorly understood regulatory oversight. They may therefore be more vulnerable to fraud and default than the established and regulated exchanges that exist for financial instruments. Should exchanges or trading facilities that represent a substantial part of the Perpetual Airdrop Tokens trading volume be involved in fraud, security failures or other operational problems, the failures of such exchanges or trading facilities may limit the Perpetual Airdrop Tokens value or liquidity. 

 

Risk of an Uninsured Loss

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Unlike bank accounts or accounts in other regulated financial institutions, funds held through the Ethereum network are generally uninsured. At present, there are no public or private insurance agents providing acquirers with coverage against a loss of Perpetual Airdrop Tokens or a loss of value. 

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Risk of winding-up of the Perpetual Airdrop Association experiment

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There is a risk that, due to any reason, the Perpetual Airdrop Association experiment may no longer be a viable activity and may be dissolved or simply not launched.

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Risks associated with uncertain regulations and enforcement actions

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The regulatory status of the Perpetual Airdrop Tokens and distributed ledger technology Is unclear and unsettled in many jurisdictions. It Is difficult to predict how or whether regulatory authorities may apply existing regulation with respect to such technology and Its applications, including the Perpetual Airdrop experiment and Its Perpetual Airdrop Tokens. It Is likewise difficult to predict how or whether legislatures or regulatory authorities may Implement changes to law and regulation affecting distributed ledger technology and its applications, including the Perpetual Airdrop experiment and Its Perpetual Airdrop Tokens.

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Risks arising from taxation

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Perpetual Airdrop Token holders must seek their own tax advice In connection with the receipt of Perpetual Airdrop Tokens, which may result in adverse tax consequences to Perpetual Airdrop Token holders, including withholding taxes, Income taxes and tax reporting requirements. The Perpetual Airdrop Association Is not responsible for collecting taxes from Perpetual Airdrop Token holders, for making any payments on behalf of the Perpetual Airdrop Token holders, or for providing any professional advice relating to tax.

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Unforeseen risks

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Token-currencies and cryptographic tokens are a new, untested technology. In addition to the risks stipulated above, there are other risks that the Perpetual Airdrop Association team cannot predict. Risks may also occur as unanticipated combinations or as changes in the risks stipulated herein. 

Governing Law and Arbitration

This whitepaper and the terms and conditions contained herein shall be governed by and construed in accordance with the laws of Switzerland.

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Any dispute, controversy or claim arising out of, or in relation to the Perpetual Airdrop issuance, the Perpetual Airdrop Tokens, the content of this whitepaper and any associated documents and material, shall be resolved by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Arbitration Centre in force on the date on which the Notice of Arbitration is submitted in accordance with these Rules. The arbitration panel shall consist of one arbitrator only. The seat of the arbitration shall be Geneva, Switzerland. The arbitral proceedings shall be conducted in English.

 

Perpetual Airdrop Association 

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