Disclaimer

PLEASE READ THE ENTIRETY OF THIS "LEGAL DISCLAIMER" SECTION CAREFULLY. NOTHING HEREIN CONSTITUTES LEGAL, FINANCIAL, BUSINESS OR TAX ADVICE AND YOU SHOULD CONSULT YOUR OWN LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) BEFORE ENGAGING IN ANY ACTIVITY IN CONNECTION HEREWITH.

This Documentation contains forward-looking statements that relate to Web3 Music Association (“The Association”) current expectations and views of future events. These statements may prove to be incorrect and may be influenced by inaccurate assumptions, unknown risks, uncertainties, and other factors beyond The Association's control. It is expected that some of these assumptions may not materialise or may significantly differ from actual results.

The Documentation is provided for informational purposes only and does not constitute a prospectus, advice, offer document, offer of securities, solicitation for investment, or any offer to sell any product, item, or asset in any jurisdiction. The Association and its officers, directors, advisors, agents, partners, representatives, consultants, and employees make no express or implied representation or warranty regarding the adequacy, accuracy, or completeness of the information in the Documentation or the described project.

The Documentation has not been reviewed or approved by any competent authority in any Member State of the European Economic Area or in any other jurisdictions and does not constitute a prospectus within the meaning of the capital market regulations. Prospective purchasers should make their own independent evaluation of all risk factors and should read the detailed information set out elsewhere in the Documentation. Other risks and uncertainties unknown to The Association or considered insignificant at this time could equally have a material adverse effect on the business, operations, financial conditions or prospects of The Association.

The Association as a Technology Provider

The Association’s role is strictly limited to providing technological infrastructure to support the management and processing of music-related assets. As a technology provider, The Association delivers blockchain-based tools and solutions that facilitate these processes but does not offer financial services, investment products, securities, or any form of investment advice. The Association does not engage in issuing, managing, or selling financial instruments.

The platform is designed to be used by regulated entities that choose to integrate The Association's technological functionalities into their operations. It is important to note that The Association remains distinct from financial service providers and does not function as an investment or financial services company.

Phased Development

The project is in its early stages, with most of the functionalities outlined in this document planned for future development. Many features are still under development and do not yet exist. The implementation will proceed in multiple phases, each contingent on regulatory approval and technical feasibility.

The phases are subject to change based on regulatory requirements, technical progress, and other factors. There is no guarantee that all functions described will be realised or will be implemented in the exact form stated. Each phase will proceed only after obtaining any necessary regulatory approvals. Accordingly, you should be aware that some project features may never be realised, and the implementation of various functions may differ significantly from what is described due to regulatory changes, technical challenges, or market conditions.

Risks Related to Development Phases

The implementation of the platform’s functionalities is subject to various risks, including:

• Delays and Technical Issues: Any delays, technical problems, or failures during the development of different phases may impact the overall project timeline and the usability of the platform’s functionalities.

• Resource Constraints: There may be unforeseen financial, resourcing, or technical challenges during development. These challenges could compromise the project’s progress, potentially leading to failure, termination, or indefinite delays.

• Regulatory Challenges: Each phase may require obtaining specific regulatory approvals. Regulatory authorities may impose additional requirements or restrictions, which could delay or prevent the implementation of certain features.

• Market and Operational Risks: Market conditions, user adoption rates, or operational challenges could affect the feasibility of deploying new functionalities as planned.

Development of RECORD IP Yield ($YREC)

The RECORD IP Yield ($YREC) does not currently exist. It is part of the planned future development and will be subject to regulatory approval before any potential issuance. The information presented is intended for informational purposes only and should not be considered an offer to sell or a solicitation to buy any securities or financial instruments. The launch and availability of RECORD IP Yield ($YREC) will depend on successful regulatory approval. Please note that the details, features, and terms of the product may change as the design and regulatory review process continues. Potential purchasers should stay informed through official channels for updates on the status of the RECORD IP Yield ($YREC).

Regulatory Status of $RECORD Token

The $RECORD Token is considered a utility token under the current Swiss regulatory framework and not a security or payment token, as per FINMA’s interpretation provided to The Association. Consequently, the issuance of the $RECORD Token by The Association is not subject to the Anti-Money Laundering Act and does not require a prospectus under the Financial Services Act. Furthermore, FINMA confirmed that no other financial market laws in Switzerland, including the Financial Market Infrastructure Act are applicable to the $RECORD Token.

Authorization by The Association

No person is authorised to provide any information or to make any representation not included in the Documentation, and any information or representation not contained herein must not be relied upon as having been authorised by The Association.

Changes to the Project

The project may be updated and modified without prior notice. The Association is not obligated to update any forward-looking statements, even if they become incorrect or misleading due to new information, future events, or other circumstances. Additionally, The Association may face challenges during product development, including financial, resourcing, and technical difficulties. These difficulties are unpredictable and may be unsolvable, potentially compromising the overall project development. The project may fail, terminate, or experience delays at any time for any reason. Certain project features may never be realised, which could significantly reduce or completely eliminate the utility of $RECORD Tokens.

Legal status of $RECORD Token and Project is untested

Certain jurisdictions might apply already existing laws and regulations to blockchain technology-based projects or introduce new laws or regulations for this purpose. In particular, $RECORD Tokens may at any time be deemed to be a security, investment, asset or money by governmental authorities or regulators. This could lead to substantial modifications, termination, and/or loss of $RECORD Tokens. The Association may receive formal or informal queries, notices, requests, or warnings from governmental authorities and regulators. Regulatory action may be taken against The Association or the project.

No assets, property, governance or security right underlying $RECORD Token

​​In particular, $RECORD Token does not represent or constitute any intellectual property rights, ownership rights or stake, shares or security, membership right or equivalent rights nor any right to receive future revenues, shares or any other form of participation or governance rights in or relating to The Association. Due to the no security right, The Association is not to be construed, interpreted, classified or treated as debentures, stocks or shares issued by any person or entity, rights, options or derivatives in respect of such debentures, stocks or shares, rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss, units in a collective investment scheme, structured products, units in a business trust, derivatives of units in a business trust.

Possible migration of the $RECORD Token

The Association may migrate the $RECORD Token to another protocol and generate replacement tokens on the new protocol if deemed necessary or useful. In such a case, support for pre-existing tokens or any other operational matters may cease, except during the migration process.

Reliance on the Internet

$RECORD Tokens and the project heavily rely on the internet. However, the public nature of the internet means that it may be unreliable or unavailable at any given time. Data transmission via the internet may be subject to interruption, delay, corruption, loss of confidentiality, or other issues.

Reliance on Blockchain Platform

The $RECORD Token holders need to have sufficient understanding of the functionality, usage, storage, transmission mechanisms and other material properties of cryptographic assets, wallets and other token/asset storage mechanisms, public and private key administration, blockchain technology, and blockchain-based software systems. The $RECORD Tokenholders understand, recognize and acknowledge that such understanding allows the $RECORD Tokenholders to appreciate the implications and risks of purchasing $RECORD Token. The $RECORD Token Tokenholders understand and accept the risk that the smart contract system concept, the underlying software application, the software platform and ecosystem architecture are at an early developmental stage and yet to be proven. There are no warranties or guarantees that the process for creating $RECORD Token will be uninterrupted or error-free and there is an inherent risk that the software could hold weaknesses, vulnerabilities or bugs causing, inter alia, the complete loss of the contributed value and/or $RECORD Token.

The blockchain technology is experimental, and risks associated with reliance on it include technical flaws, malicious targeting, changes in consensus protocols or algorithms, decreased community or miner support, existence of competing networks or platforms, existence of forked versions, flaws in scripting languages, disputes, and regulatory actions.

No liabilities

The Association, its officers, directors, advisors, agents, partners, representatives, consultants or employees will not be liable for any direct, indirect or consequential loss, or damage suffered by any person relying on any representation or omission made in the Documentation and, to the fullest extent permitted by law, all conditions, warranties and other terms which may be implied by law and any such liability are expressly excluded.

Market and industry information

The Documentation may contain market and industry information obtained from a variety of sources, including internal surveys, reports, studies, market research, and industry publications. While reasonable efforts have been made to ensure the accuracy and completeness of this information, there is no guarantee of its reliability.

General comment on risks

Purchasing $RECORD Tokens carries inherent risks, including but not limited to blockchain-related risks, project abandonment or lack of success, regulatory risks, and jurisdiction-related risks. These risks, and additional risks arising either now or in the future, could result in the failure of the $RECORD Tokens transfers, the destruction of the $RECORD Tokens or the utility of the $RECORD Tokens, and/or the termination of the development of The Association.

There is a possibility that the purchase amount may be unrecoverable and/or that the $RECORD Tokens may cease to have inherent intrinsic value. Many factors, most of which are beyond the Association's control, will influence the value of the $RECORD Tokens and the price, if any, at which market participants may be willing to purchase or sell $RECORD Tokens in the secondary market. The purchase of $RECORD Tokens involves the risk that subsequent changes in relative market performance may adversely affect the value of $RECORD Tokens.

IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX, OR OTHER PROFESSIONAL ADVISOR(S).

THE DOCUMENTATION IS FOR INFORMATION PURPOSES ONLY AND MAY BE SUBJECT TO CHANGE.