Risk & Investment Disclaimer

Nature of $TSUN - What This Token Is and Is Not

$TSUN is a community meme token with an in-game utility layer. It is deployed on the TON Blockchain as a Jetton (fungible token). The token's intended use is participation in the Tsunonton GameFi ecosystem - specifically the clicker game, leaderboard, and Phase 3 airdrop programme.

$TSUN is explicitly not any of the following:

• A security, share, bond, debenture, or any form of investment contract.
• A unit in a collective investment scheme or managed fund.
• A stablecoin, payment token, or currency backed by any reserve asset.
• A claim against the project, its team, or any legal entity.
• A financial product regulated by any financial authority.

The token's market price is determined entirely by open-market supply and demand on decentralised exchanges. The project team does not control, manage, target, or guarantee any particular price.

Not Financial, Legal, or Tax Advice

Nothing on this website, in the whitepaper, in the Telegram community, in the Telegram bot, in any social media post, or in any communication from the project or its team members constitutes:

• Financial advice or a recommendation to buy, sell, or hold any asset.
• Investment advice of any kind.
• Legal advice regarding the legality of any activity in your jurisdiction.
• Tax advice regarding your tax obligations arising from any interaction with $TSUN.

All statements about the project - including roadmap milestones, airdrop plans, game features, and tokenomics - are forward-looking statements of intent, not guarantees or binding commitments. They are subject to change at any time and may not materialise.

You should seek independent advice from qualified financial, legal, and tax professionals before making any decision to purchase, hold, or otherwise interact with $TSUN.

Market & Price Risks

The price of $TSUN is subject to extreme volatility. The following market risks apply and you should understand each before participating:

Extreme price volatility

Meme tokens and GameFi tokens frequently experience price movements of 50-99% in either direction within very short timeframes - sometimes within hours or minutes. There is no price floor. $TSUN can and may decline to near-zero value at any time. Historical price data, if any exists, is not indicative of future performance.

Thin liquidity & price manipulation

As an early-stage token with a limited market cap, $TSUN is particularly susceptible to price manipulation tactics including pump-and-dump schemes, wash trading, and coordinated selling by large holders ("whales"). The project team cannot prevent, predict, or be held responsible for such market behaviour by third parties.

Market sentiment dependency

Meme token prices are heavily influenced by social media trends, community sentiment, influencer activity, and broader cryptocurrency market conditions - none of which the project controls. A general downturn in the cryptocurrency market, negative press about TON Blockchain, or loss of community interest could severely and permanently impact the price of $TSUN.

No guaranteed exit

There is no guarantee that you will be able to sell your $TSUN tokens at any price, including the price you paid. In adverse market conditions, there may be insufficient buyers to execute a sale.

Liquidity Risk

$TSUN is currently traded exclusively on decentralised exchanges (primarily STON.fi). This creates several liquidity-related risks:

• Depth risk: The liquidity pool may be insufficient to absorb large trades without significant price impact (slippage). A large sell order may receive substantially less value than the displayed market price suggests.
• Lock expiry risk: The initial liquidity pool tokens are locked via TonRaffles for a fixed period. Upon lock expiry, the team or LP token holders may withdraw liquidity, potentially reducing or eliminating the ability to trade $TSUN. Monitor lock status on TonRaffles independently.
• DEX dependency: If STON.fi or the TON Blockchain itself experiences technical issues, downtime, or ceases operation, access to your $TSUN holdings may be temporarily or permanently impaired.
• No CEX guarantee: Future listings on centralised exchanges (mentioned in the Phase 3 roadmap) are aspirational goals, not commitments. Such listings depend on third-party decisions outside the project's control and may not occur.

Smart Contract & Technical Risks

All interactions with $TSUN involve smart contracts deployed on the TON Blockchain. Smart contracts carry inherent technical risks:

Code vulnerabilities

Despite the contract being renounced and following the standard Jetton implementation, no smart contract can be guaranteed to be entirely free of bugs, logical errors, or exploitable vulnerabilities. A contract exploit could result in loss or theft of tokens held by users or in the liquidity pool. The renounced status means the team also cannot patch such vulnerabilities if discovered after renouncement.

Blockchain-level risks

The TON Blockchain itself is subject to protocol-level risks including: network congestion causing transaction failures, software bugs in the TON protocol, hard forks that could affect token functionality, and decisions by the TON Foundation or validator set that may adversely affect token holders.

Irreversibility of transactions

All blockchain transactions are permanent and irreversible. If you send tokens to a wrong address, interact with a malicious contract, or are deceived by a phishing attack, no party - including the project team - can recover your funds. There is no undo function on a blockchain.

Wallet security

Loss of your private key or seed phrase results in permanent, unrecoverable loss of all assets in that wallet. The project has no mechanism to recover lost wallets. You are solely responsible for the security of your own credentials.

Regulatory & Legal Risk

The regulatory landscape for cryptocurrency is evolving rapidly and differs significantly between jurisdictions. Regulatory changes can have severe consequences for token holders:

Ban or restriction risk

Governments may at any time prohibit, restrict, or impose conditions on the purchase, holding, transfer, or trading of cryptocurrency tokens including $TSUN. Such action could render your holdings illiquid, untransferable, or legally problematic to hold in your jurisdiction. You are responsible for determining the legality of holding and trading $TSUN in your country.

Exchange and service restrictions

Regulatory action could require exchanges, wallet providers, or other service providers to restrict or terminate access to $TSUN trading pairs or token transfers. This could affect your ability to buy or sell $TSUN without notice.

AML/KYC obligations

Future regulatory requirements may impose anti-money laundering (AML) or know-your-customer (KYC) obligations on participants - including for receiving airdropped tokens. Failure to satisfy such requirements could result in forfeiture of airdrop allocations or restricted access to services.

No regulatory recourse

$TSUN is not issued or supervised by any financial regulator. If you suffer a loss in connection with $TSUN, you have no recourse to any financial ombudsman, compensation scheme, regulatory authority, or investor protection mechanism. Your only potential recourse is through civil litigation, which is constrained by the anonymous nature of the development team and the lack of a registered legal entity.

Securities Law Risk

The classification of cryptocurrency tokens as securities varies by jurisdiction and is subject to ongoing legal development. The project believes $TSUN does not meet the definition of a security under common legal tests, for the following reasons:

• There was no capital raise - no presale, no ICO, no private placement to investors.
• No profits, dividends, or financial returns are promised or implied.
• The token's primary purpose is in-game utility within the Tsunonton GameFi ecosystem.
• The contract is renounced - holders have no claim against any identifiable legal entity.

However, this analysis may not hold in all jurisdictions or under all regulatory frameworks. In particular:

• The airdrop structure - where users perform game activity (clicking, quests) in expectation of receiving tokens - may be analysed differently by some regulators, particularly those applying a broad interpretation of investment contract tests.
• Regulatory guidance in the EU (MiCA), UK (FCA), Singapore (MAS), and other jurisdictions continues to evolve and may reclassify tokens with GameFi mechanics.
• In the United States, the SEC has taken broad enforcement positions on cryptocurrency. US residents and citizens are strictly prohibited from purchasing or interacting with $TSUN.

Airdrop-Specific Risks

The Phase 3 airdrop is a stated project intention. It is subject to the following specific risks that participants must understand:

• No binding commitment. The airdrop is not a contract. The project reserves the right to cancel, reduce, delay, or materially modify the airdrop programme at any time, for any reason, without liability to any participant.
• Eligibility criteria may change. Leaderboard thresholds, snapshot dates, and distribution amounts have not been finalised. They may be adjusted based on total player count, regulatory requirements, or operational decisions.
• Airdropped tokens may have zero or negligible market value. Receipt of tokens in an airdrop does not guarantee any financial value. Airdropped tokens are subject to all the same market, liquidity, and regulatory risks described in this document.
• Tax on receipt. In many jurisdictions, receiving airdropped tokens constitutes a taxable event at the time of receipt, valued at the fair market price on the date of distribution. You are responsible for calculating and paying any applicable taxes - see Section 9.
• KYC may be required. Regulatory compliance checks may be introduced before airdrop distribution. Failure to satisfy such checks may result in forfeiture of your allocation.
• Technical failure risk. Airdrop distribution involves on-chain transactions. Network congestion, contract issues, or incorrect wallet addresses could result in failed or misdirected deliveries. The project will make reasonable efforts but cannot guarantee successful delivery in all circumstances.

Tax Risk

Interactions with $TSUN may create tax obligations depending on your jurisdiction. Tax treatment of cryptocurrency varies widely internationally and is subject to change. The following events are commonly treated as taxable in many jurisdictions:

• Purchasing $TSUN with fiat currency or another cryptocurrency.
• Selling or swapping $TSUN on a DEX or any other exchange.
• Receiving $TSUN through the airdrop (potentially taxable as income at fair market value on receipt date).
• Using $TSUN in any transaction that constitutes a disposal under applicable tax law.

You are solely responsible for determining your tax obligations, filing accurate tax returns, and paying all taxes arising from your participation in $TSUN. The project does not collect, report, or remit taxes on your behalf, and does not provide tax documentation. The project team will not be liable for any tax penalties, interest, or assessments incurred by participants.

Consult a qualified tax adviser in your jurisdiction before participating.

Operational & Project Risk

The following risks relate to the project's ability to operate and deliver on its stated goals:

Anonymous team

The project is operated by an anonymous development team with no registered legal entity. While on-chain mechanics (renounced contract, locked LP) provide structural safeguards that do not depend on the team's ongoing involvement, the game development, community management, and future features do depend on the team's continued participation. There is no guarantee that team members will continue to contribute to the project indefinitely.

Development risk

The clicker game and Phase 3 expansion are works in progress. There is no guarantee that development will be completed on schedule, to the described specifications, or at all. Game features, mechanics, and the airdrop programme may be significantly altered from current descriptions.

Funding risk

The project funds operations from the Dev & Marketing token allocation. If token value declines significantly, the project's operational capacity may be impaired, potentially affecting game development and community support.

Abandonment risk

There is a non-trivial risk, as with all community crypto projects of this nature, that the project is abandoned. In such an event: the renounced contract means token transfers remain functional on-chain indefinitely, but the game, bot, and website may cease operation and the airdrop would not be executed.

Third-Party & Counterparty Risk

$TSUN interacts with several third-party platforms and services. Risks associated with these third parties are entirely outside the project's control:

• STON.fi: A DEX failure, exploit, or protocol change could impair or eliminate the ability to trade $TSUN. The project is not responsible for losses arising from STON.fi's operation or failure.
• TonRaffles: The LP lock is held by TonRaffles' smart contracts. A vulnerability or failure in TonRaffles' contracts could affect the LP lock. The project has no control over TonRaffles' infrastructure.
• Telegram: The game Mini-App and bot are operated via Telegram's platform. Changes to Telegram's policies, API, or Mini-App framework could disrupt or terminate the game. Telegram's terms of service govern your use of its platform independently of this project.
• Wallet providers: Tonkeeper, MyTonWallet, and other wallet applications are operated by independent third parties. Security incidents or failures at wallet providers are outside the project's control and responsibility.
• Google Fonts / CDN providers: The website uses third-party CDN services. These are governed by their own privacy policies and terms.

Limitation of Liability

To the maximum extent permitted by applicable law, the $TSUN project, its anonymous development team, contributors, community managers, and any affiliated parties expressly disclaim all liability for any and all losses, damages, costs, or expenses of any kind arising directly or indirectly from:

• The purchase, holding, sale, or transfer of $TSUN tokens.
• Price fluctuation or total loss of market value of $TSUN.
• Participation in the clicker game or any airdrop programme.
• Smart contract bugs, exploits, or failures.
• Regulatory action affecting $TSUN in any jurisdiction.
• Failure of third-party platforms (STON.fi, Telegram, TonRaffles, wallet providers).
• Loss of wallet access due to lost credentials.
• Phishing, impersonation, or social engineering attacks by third parties.
• Reliance on any statement, projection, or roadmap published by the project.
• Tax obligations or penalties arising from your participation.
• Cancellation, modification, or failure to execute the airdrop programme.
• Project abandonment or discontinuation of any service.

This limitation applies to all forms of liability - contract, tort (including negligence), statute, or otherwise. In jurisdictions that do not permit unlimited exclusion of liability, the project's liability is limited to the minimum amount required by applicable law.

Risk Matrix Summary

The following summary categorises the principal risks by severity. This is not exhaustive - refer to the full sections above for complete disclosure.

By Participating, You Acknowledge