# Legal Disclaimer & Risk Factors

**Participation in Fortuna Protocol and the use of the $FORT token involve inherent risks. This section provides an overview of these risks, ensuring transparency and informed decision-making by potential users.**

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**Legal Disclaimer**

The information provided in this document is intended solely for informational purposes. It does not constitute financial, investment, legal, or other professional advice. Participants should conduct independent research and consult with qualified professionals before making investment decisions.

Fortuna Protocol ($FORT) tokens are utility tokens designed for use within the protocol's ecosystem. Ownership of $FORT tokens confers no direct or indirect ownership, voting rights, or entitlement to dividends from the protocol’s operations unless explicitly stated otherwise.

Participation in DeFi protocols, including Fortuna Protocol, carries inherent risks. The Fortuna Protocol team is not liable for any financial losses or damages arising from participation or investment in the protocol.

#### Risk Factors

Participants should carefully review and understand the following risks associated with decentralized finance and cryptocurrency investments:

* **Market Risk:**\
  Cryptocurrency and DeFi markets are highly volatile. Token prices can fluctuate significantly and rapidly, potentially resulting in substantial financial losses.
* **Smart Contract Risk:**\
  Despite thorough security audits, smart contracts can contain unforeseen vulnerabilities. There is always a risk of potential exploitation or unintended behavior that could negatively affect user funds or token valuation.
* **Liquidity Risk:**\
  Insufficient liquidity may impact the ability to buy or sell tokens at desired prices. Although Fortuna implements measures to mitigate liquidity issues, market conditions are inherently unpredictable.
* **Regulatory and Compliance Risk:**\
  Cryptocurrency regulations vary widely by jurisdiction and may evolve, impacting the legal status and usability of $FORT tokens. Participants are responsible for understanding local regulations and ensuring compliance.
* **Technological Risk:**\
  Blockchain technology is subject to technological risks, including network congestion, hacking, smart contract bugs, and cyber-attacks. While Fortuna Protocol takes substantial precautions, complete elimination of these risks is impossible.
* **Operational Risk:**\
  Protocol developments, updates, or unforeseen technical issues could temporarily affect the functionality and accessibility of the platform.\


#### User Responsibility

Participants are responsible for:

* Conducting thorough due diligence and research before investing or participating.
* Understanding potential risks and accepting responsibility for personal investment decisions.
* Complying with applicable local laws and regulations regarding cryptocurrency use and DeFi participation.
* Maintaining secure custody and safeguarding private keys and wallets used for token storage and transactions.

#### Commitment to Security and Transparency

Fortuna Protocol is fully committed to transparency, security, and continuous improvement:

* Audits and Security Assessments:
  * Independent, third-party security audits of smart contracts and systems.
  * Transparency in audit results to maintain trust among users.
* Continuous Improvement:
  * Ongoing community feedback and governance mechanisms to address security and operational concerns promptly and transparently.
* Clear Communication:
  * Active communication channels to keep the community informed about risks, developments, and updates.

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