Welcome to DCAP
Open Letter from Jared Lutz, CEO DCAP
Building the Decentralized Capital Allocation Protocol has been the single most deliberate decision I have made in my professional career. It was not impulsive or a play on recent global events. Building DCAP is an accumulation of life experiences in my development journey within the private, NGO, and blockchain sectors. My journey has led to an intense focus on stable investments, long-term growth, and equity accumulation. I have seen companies rise and fall too fast, and this is not an example to follow. Some companies in this sector have heightened volatility because of bad actors either within or outside the company. It is essential that we stand out uniquely, and DCAP allows us to do exactly that.
I have lived my life under a single guiding principle: Birds of a feather flock together. This is the same sentiment as “If I know who your friends are, I know your character.” I have met amazing and incredible people in my life, as well as in the blockchain space, and I have surrounded myself with them for the adventure of a lifetime, the DCAP adventure.
DCAP was designed to thrive and be supported by a growing portfolio of properties and cash flow assets. A token backed by property acquisition with cash flow allows investors to be introduced to cryptocurrency without the fear of significant financial loss. DCAP is not a community hype project. Hyping or selling on emotion leads to alarming volatility that attracts bad actors and scam artists. The DCAP ecosystem was created to find balance and stability. DCAP is not meant for investors looking for a quick return. This type of mentality, again, leads to unnecessary volatility. We are building a stable environment that acts as a portal or gateway for traditional fiat investors to bridge into cryptocurrency investments in a safe and stable manner. We will not pump an idea, we will not pay for influencers. We do not need to.
Crypto is the biggest opportunity our generation has to shape its impact on the world. This is not a fad, this is not a turn and burn opportunity. This is longevity, true financial innovation. This is our time to come together and support the pioneers that paved the way in this emerging technological space.
We need to be retaining lawyers and working with lawmakers and regulators to influence policy. We need to find stability, and build a sustainable infrastructure.
With the executive order President Biden signed on March 9th, 2022, the United States government is aggressively positioning themselves to be the leader and influencer in the cryptocurrency financial markets. This is leading to and will continue to lead massive amounts of global adoption. While the industry continues to be plagued with these bad actors and scam artists, institutional and long-term investors are seeking safe and secure investments, while at the same time, taking advantage of the returns from investing in an emerging technological space.
Although it is true that no investment is safe, we can strive to be better at ensuring the financial security of our future. We will focus on building stability through these stable asset class investments and we will build our entire infrastructure, right on top. In our opinion, there is no stronger use case for creating stability in an otherwise unstable market.
Important Information
This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an investment in Decentralize Capital Allocation Protocol “DCAP.” Investing in DCAP Investment Products & Currency involves risks. The recovery of an initial investment is at risk, and the anticipated return on such an investment is based on many performance assumptions. The actual amount distributed will depend on numerous factors, including DCAP’s financial performance, debt covenants and obligations, interest rates, working capital requirements and future capital requirements. In addition, the market value of DCAP, its investment products and currency may decline if DCAP is unable to meet its cash distribution targets in the future, and that decline may be material. It is important for an investor to consider the particular risk factors that may affect the industry in which it is investing and therefore the stability of the distributions that it receives. There can be no assurance that income tax laws and the treatment of mutual fund trusts will not be changed in a manner which adversely affects DCAP. PAST PERFORMANCE MAY NOT BE REPEATED. Investing in DCAP can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of performance. An investment in DCAP is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider a potential purchase of the DCAP token. The risks involved in this type of investment may be greater than those normally associated with other types of investments.
Risks
Risk of Hacking and Security Weakness
Hackers or other groups or organizations may attempt to interfere with DCAP in a number of ways, including, but not limited to denial of service attacks, Sybil attacks, spoofing, smurfing, malware attacks, or consensus-based attacks, and any such similar events which could have an impact on DCAP, the dcap.finance Platform and the Services the Company may offer from time to time.
Risk of Security weakness in the Smart Contract, Website and DCAP Source Code or any associates software and/or Infrastructure
There is a risk that the Smart Contract, Website, the dcap.finance Platform and DCAP may unintentionally include weaknesses or bugs in the source code interfering with the use of or causing the loss of DCAP; the source code of the Website is open and could be updated, amended, altered or modified from time to time. The Company is unable to foresee or guarantee the precise result of an update, amendment, alteration or modification. As a result, any update, amendment, alteration or modification could lead to an unexpected or unintended outcome that adversely affects DCAP and/or the Website. As a result, DCAP may be lost.
Risk of no Listing or low/no Liquidity
DCAP coins are intended to be used solely for the dcap.finance Platform and the Company will not support or otherwise facilitate any secondary trading on an exchange or the secondary market or the external valuation of DCAP, which are all beyond the scope and purpose of the dcap.finance Platform. This restricts the contemplated intended use of DCAP only to the dcap.finance Platform and could therefore create illiquidity risk with respect to DCAP that the Participant owns. Even though there are currently online services available which enable exchange of cryptographic tokens with other such tokens or even enable the exchange of cryptographic tokens for fiat money, there are no warranties and/or guarantees that DCAP will be made available for exchange with other cryptographic tokens and/or fiat money, and no guarantees are given whatsoever with regard to the capacity and/or volume of such exchange/s. It shall be explicitly cautioned that such exchange, if any, might be subject to poorly-understood regulatory oversight, and the Company does not give any warranties in regard to any exchange services providers. Users including the Participant, if applicable, might be exposed to fraud and failure affecting those exchanges. In any case, it is not the Company’s aim to enable exchange of DCAP for other cryptographic tokens or for fiat currency and it shall therefore not commit to any endeavors to list DCAP on such exchanges or any secondary markets.
Risk of Malfunction in the Ethereum Network or any other Blockchain and of Competing Platforms
It is possible that DCAP tokens are interacting with malfunctions in an unfavorable way, including but not limited to one that results in the loss of DCAP or prevent their use on the dcap.finance Platform. It is possible that alternative platforms could be established that utilize the same open source code and protocol underlying the dcap.finance Platform and attempt to facilitate services that are materially similar to the dcap.finance Platform. The dcap.finance Platform may compete with these alternatives, which could negatively impact and dcap.finance Platform, including the utility of DCAP for use of the dcap.finance Platform
Risk of Uninsured Losses
Unlike bank accounts or accounts at some other financial institutions, DCAP coins and tokens are uninsured unless the Participant specifically obtains private insurance to insure them. Thus, in the event of loss of DCAP or loss of DCAP’s value, there is no public insurer, such as the Investor Compensation Scheme or private insurance arranged by the Company to offer recourse to the Participant.
Risk associated with uncertain Regulations and enforcement actions
The regulatory status of tokens in general, Initial Token or Coin Offerings, Private Placement Event and distributed ledger technology is unclear or 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 dcap.finance Platform and the DCAP. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement regulatory actions or changes to law and regulation affecting distributed ledger technology and its applications, including the dcap.finance Platform and the tokens. Regulatory actions or changes to law and regulation could negatively impact DCAP and the dcap.finance Platform in various ways, including, but not limited to, a determination that the acquisition, holding and use or disposal and transfer of DCAP constitutes a regulated instrument that require registration or licensing of those instruments or some or all of the parties involved in the acquisition, contribution, sale and delivery thereof. The Company may cease operations or interrupt the Private Placement Event in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable or no longer viable to obtain the necessary regulatory approval/s to operate in such jurisdiction or to provide the dcap.finance Platform.
Risk arising from Taxation
The tax characterization of DCAP is uncertain. The Participant must seek his own tax advice in connection with purchasing DCAP, which may result in adverse tax consequences to him, including withholding taxes, income taxes and tax reporting requirements.
Risk of insufficient interest in DCAP and the dcap.finance Platform
It is possible that DCAP and the dcap.finance Platform will no longer be used by a large number of individuals, companies and other entities or that there will be limited interest in the use of DCAP and the dcap.finance Platform. Such a lack of use or interest could negatively impact the development of the dcap. finance Platform and therefore the potential utility of DCAP.
Internet Transmission Risks
There are risks associated with using DCAP including, but not limited to, the failure of hardware, software, and Internet connections, or other technologies on which the dcap.finance Platform or the use of DCAP relies. Such failures may result in disruptions in communication, errors, distortions or delays when using DCAP and the dcap.finance Platform or the Website.
Risk of Dissolution of the Company
It is possible that, due to any number of reasons, including, but not limited to, a decrease in DCAP’s utility, the failure of commercial relationships, or intellectual property ownership challenges, unfavorable market conditions and added compliance and regulatory obligations, the use of the dcap.finance Platform may no longer be viable to be offered or the Company may need to cease trading and be dissolved and liquidated.
Risk arising from Lack of Governance Rights
Since DCAP coins do not represent or confer any ownership right or stake, share or security or equivalent rights, intellectual property rights or any other form of participation relating to the Company, all decisions involving the Company will be made by Company at their sole discretion, including, but not limited to, decisions to transfer more DCAP for use, to sell or liquidate the Company. These decisions could adversely affect the utility of that the Participant holds.
Regulatory Risks and Market Risks
The Company and by operation of the dcap.finance Platform, are subject to a variety of domestic (USA) and/or EU and international laws, regulation and directives, including those with respect to privacy and data protection, consumer protection, data security, and others. These laws, regulations and directives, and the interpretation or application of these laws, regulations and directives, could change. In addition, new laws, regulations or directives affecting the Company, the dcap.finance Platform and DCAP could be enacted, which could impact the utility of DCAP and their use on the dcap.finance Platform. Additionally, the Participants are subject to industry specific laws and regulations or licensing requirements. If any of the Parties fails to comply with any of these licensing requirements or other applicable laws or regulations, or if such laws and regulations or licensing requirements become more stringent or are otherwise expanded, it could adversely impact DCAP and the dcap.finance Platform, including the DCAP’ utility on the dcap.finance Platform. The Participant hereby accepts the risk that in some countries DCAP might be considered, now or in the future, a Security Token. In this case the Company gives no representations, warranties or guarantees that the Utility Tokens are not considered to be Security Tokens in all countries. The Participant hereby accepts to be solely responsible of the legal, financial and any other risks connected to DCAP as a security in his country and to be the only responsible to check if the holding, using and the disposal of DCAP is legal in your country. Also, changes in laws, regulations and directives governing the Company’s operations may adversely affect their business and consequently the dcap. com Platform. Any change in the Company’s tax status, or in taxation legislation in Malta or elsewhere, could affect the value of its financial holdings, its business and the Company’s ability to achieve its business objective and continual commitment to the development of the dcap.finance Platform.
Other Inherent Risks
The Participant understands and accepts the inherent risks associated with DCAP, to the extent not covered elsewhere in the Terms, including, but not limited to, risks associated with
(a) money laundering;
(b) fraud;
(c) exploitation for illegal purposes; and
(d) any other unanticipated risks.
Unanticipated Risks
Cryptographic tokens such as DCAP as well as blockchain are a new and untested technology. In addition to the risks included in the DCAP Documents there are other risks associated with the Participant’s acquisition, holding and use of DCAP , including some that the Company cannot or may not anticipate. Such risks may further materialise as unanticipated variations or combinations of the risks discussed in the DCAP Documents. The Participant hereby represents and warrants that he will take sole responsibility for any restrictions and risks associated with the holding or use of DCAP. If any of the risks, mentioned in the Terms are unacceptable or the Participant is not in the position to understand, the Participant should not acquire, hold or use DCAP.
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