World Foundation, together with our subsidiary entities (collectively, “World” or “we”, “us” or “our”), was established to build and steward World Network, a combination of software applications, hardware devices, blockchain-network based “smart contracts”, digital assets, and various rules and procedures. World Network aims to be the underlying infrastructure and tooling that is used for building the world’s largest decentralized identity and financial network. World Network has been designed primarily as an open-source public utility, open to any and all who choose to use it. World Network is centered around a unique privacy-preserving global identity credential, known as World ID (“World ID”), and a new crypto asset, known as the Worldcoin token (“WLD”). Where available, owners of WLD tokens will be able to participate in guiding the governance of the Protocol and will contribute to the Project alongside a global community of developers, economists, technologists, and other interested individuals. The WLD token may also function as a means of making payments.

World Network and its component elements, including the WLD token, are experimental technologies. Becoming “decentralized” as quickly as practicable in line with Project’s goals means that important governance decisions about the Project will be made by the community of WLD owners. As a result, there are significant uncertainties as to how these technologies function at scale and the extent to which users around the world will find the project and the WLD token useful.

Although World hopes people across the planetwill want to become involvedt, before engaging with World Network or using WLD tokens (where available), you should read the information below and ensure that you understand both World Network’s functions and the various risks that may arise from engaging with it. World Network and its associated protocols, hardware, World ID, WLD, and any related usages or applications, are intended only for informed users above the age of majority or legal age in any jurisdiction applicable to them who can understand and accept both the anticipated benefits and related risks of engaging with World Network. World Network is being made available to you without charge on an “as is” basis, and neither World nor any other entity makes any warranties to users about World Networkor its components. Moreover, certain components or features of World Network may not be available depending on your jurisdiction. More information about your use of World Network, including important disclaimers of legal liability can be found in our Terms of Service.

World Network is experimental and is under continuous development. World Network as a whole, or any of its individual components or applications, may never achieve significant user interest or the scale or usability necessary to attract the participation of third-party developers and users such that it may never succeed. Current features of World Networkmay not function as anticipated or may temporarily or permanently cease functionality.

We cannot assure you that any or all of the components or applications built within or on top of World Network will function as intended at any given time,that they will be able to sustain operation, or that they will ever be used. The technological solutions that comprise World Network are new and/or relatively untested. As a result, some or all of these technologies may not operate as intended. In addition, if functional at any time, this functionality may be impaired by subsequent changes made through World Networkgovernance process, which themselves may be subject to change or fail to operate as described.

Individuals may be hesitant to provide their personal or biometric data to a new and unknown project or may not trust or understand the potential uses of WLD tokens and World Network. Additionally, acceptance of WLD tokens requires that there be outlets to transfer WLD tokens to others or to spend tokens as a currency, which may not develop or grow with sufficient scale to support successful growth and adoption of World Network or any use cases its related components or applications, including WLD, may have.

If we cease our operations that contribute to World Network, those WLD that have already been distributed will continue to exist on the relevant blockchain network and the community of users will be able to continue building World Network. In this case, it is still possible that owners of WLD may no longer be able to utilize their tokens or realize any value from WLD they purchased or hold.

WLD tokens are technological tools that allow you to interact with World Networkand may in the future be useable to make payments. WLD tokens do not convey any ownership rights to you, whether in World or any other legal entity.

WLD tokens are expected to be used as a global internet currency and a means of providing direction in World Network governance to further decentralization. WLD tokens are not investment products. There should be no expectation of value, future profit, or gain from the purchase or sale of WLD tokens. WLD tokens do not represent any equity or other ownership interest in World or any other entity, or any right to dividends or other distribution rights from World or any other entity.

WLD tokens are initially distributed without any immediate monetary value and are not intended to be distributed with having any value. WLD tokens may, or could, be distributed even if they have no value or utility whatsoever. Although trading markets for WLD tokens may develop, any monetary value of WLD tokens may be highly variable and be affected by one or multiple factors outside of World Network or any other party’s control, including, the overall market for cryptocurrencies such as bitcoin and ether, geopolitical or macroeconomic events, lack of adoption, network instability, hacks, or regulatory events. Users should only hold as much value in WLD tokens as they are prepared to lose, and should prepare for WLD tokens to never have any value, or else lose all value attributed to them.

When initially distributed to users, WLD tokens will simply be numerical ledger entries and will have no inherent monetary value whatsoever. Any subsequent monetary value WLD tokens have, if any, may be affected by one, or multiple, factors that affectthe current, or anticipated future, demand for WLD tokens as a means of payment or for use of other functionalities of World Network which are outside the control of World or any other party. The prices of cryptocurrencies have historically been subject to dramatic fluctuations and are highly volatile, which has deterred widespread adoption of cryptocurrency networks for day-to-day transactions or reliable means of exchange.

In addition,WLD tokens, or even “market” prices for WLD tokens published on the Internet, may not be available from a marketplace available in your jurisdiction. Purported market prices may also be subject to distortion based on the manipulative activities of others, including self-dealing or wash-trading transactions, making it difficult to accurately assess the value of WLD for use in commercial transactions at any given time. We do not have the ability to set or influence how these market prices are determined. Also, as discussed above, regulatory issues applicable to digital asset marketplaces, or digital assets generally, may impact the venues on which you may be able to dispose of or use WLD token you or other users have received.

Further, digital assets have only recently become accepted as a means of payment for goods and services by certain major retail and commercial outlets, and use of digital assets by consumers to pay such retail and commercial outlets remains limited, particularly in the countries where WLD has gained relatively higher levels of adoption. Conversely, to date a significant portion of digital asset demand has been generated by speculators and investors seeking to profit from the short- or long-term holding of digital assets.

WLD tokens are ledger entries at a particular “public address” on a blockchain network, such as the World Chain or Optimism network, and ownership of WLD refers to the ability to control transfers of WLD through knowledge of a “private key” associated with that public address. If you have not properly secured the relevant private key for the address attributable to your WLD, such as through a software or hardware wallet to which you have access, you may permanently lose access to your WLD. We cannot attain or recover your private key.

At this time, any initial WLD distributions made by us will occur through the World App, the first World Network-compatible wallet, operated by Tools for Humanity, a U.S.-based company involved in the development of World Network. The World App provides what is known as a “self-hosted” wallet, meaning that none of us, Tools for Humanity, or any other party will have access to your private key for any WLD you own. Accordingly, the loss of the private key(s) associated with WLD, whether such key(s) are stored in the World App, in another digital wallet you control, at a crypto asset marketplace, or by another means you have adopted for storing your private key(s), will result in the permanent and irretrievable loss of your WLD. In addition, if a third party gains access to your private key(s), including by gaining unauthorized access to your self-hosted wallet or to the login credentials of a hosted wallet or vault service you use, that third party may be able to irretrievably misappropriate your WLD. Neither we nor any other party will be able to recover your WLD for you.

In addition, any errors or malfunctions caused by, or otherwise related, to the digital wallet or vault at which you choose to receive and store tokens, including your own failure to properly maintain or use such digital wallet or vault, may also result in the loss of your WLD. Additionally, your failure to follow precisely the procedures set forth for buying and receiving tokens may also result in the loss of your WLD.

The tax characterization and treatment of WLD and their use is uncertain in many jurisdictions and may adversely affect the value of WLD to you.

The tax characterization of WLD is uncertain, and you should seek your own tax advice in all jurisdictions relevant to you in connection with your ownership and use of WLD. Purchases of WLD from a third-party marketplace or a disposal, or other change in disposition, by you of WLD that you received from us or any other party may result in tax consequences for you in your jurisdiction, including the imposition of withholding taxes, income taxes, and tax reporting requirements. Further, the use of WLD as a form of currency may or may not be subject to income taxes, capital gains taxes, value added, sales or use taxes, or other forms of taxes. The uncertainty in the tax treatment of WLD and transactions in WLD may discourage others from seeking to accept WLD from you in commercial or other transactions, and may also discourage others from purchasing WLD from you in a digital asset marketplace or other setting, potentially decreasing or eliminating any monetary value they may have.

The regulatory framework applicable to World Network and WLD is highly uncertain in many jurisdictions.

The regulatory status of blockchain networks, cryptographic tokens such as WLD, digital assets, biometric verification and identification devices and processes, and blockchain technology generally, is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether governmental authorities will ultimately regulate such technologies, or if they will regulate them at all. It is likewise difficult to predict how or whether any governmental authority may make changes to existing laws, regulations and/or rules that will affect cryptographic tokens, digital assets, biometric verification and identification devices and processes, or blockchain technology and its applications, or how such authorities may choose to enforce compliance with regulatory regimes that may be applicable to World Network or WLDe.

Developments or changes in regulatory treatment or unanticipated enforcement activity could negatively affect World Network and/or WLD in various ways, including, for example, through a determination that the verification mechanism is unlawful under data protection regulations, that WLD tokens are regulated financial instruments that require registration or licensing of those instruments or some or all of the parties involved in the sale, purchase and delivery thereof, or that owners of tokens who are involved in the governance of a protocol may have responsibility for losses to third parties interacting with that protocol. These are just a few examples and are not intended to be prescriptive. It is always possible that government authorities introduce new or modified legal restrictions or requirements, or else engage in enforcement activity, which may result in a termination of WLD distributions, the use of WLD for any purpose, or a cessation to the operation of World Network itself. We are not providing, and are unable to provide, any legal opinion or advice regarding any topic discussed throughout this information. You are responsible for understanding and complying with any applicable or potentially applicable laws. If you are uncertain about the legal status of or the potential affects of the law to, World Network, its components or applications, or WLD, you may consider independently seeking out qualified parties to provide you with competent advice relevant to your activities and jurisdiction(s). We cannot make recommendations for you as to when or whether such an undertaking may be appropriate or advisable.

Public policy towards token distributions,cryptocurrency, blockchain technology, and privacy protection is evolving, and it is conceivable that regulators may in the future seek to broaden the scope of regulations or enforcement activities applicable to these or related fields. Regulators, courts, or other government authorities may interpret existing regulations or laws in a way that adversely impacts World Network, its components, its applications its users. For example, if an offer, distribution and/or sale of tokens such as WLD becomes subject to registration, prospectus, or licensing requirements in a particular jurisdiction, the utility and/or availability of WLD in that jurisdiction may be adversely affected.

Certain jurisdictions, including the European Union, China, Russia, and Turkey have already adopted laws, regulations or directives that may affect the Ethereum, World Chain, and Optimism blockchain networks, in general, and World Network, in particular. For instance, the European Union has ratified the Markets in Crypto-Assets (MiCA) framework governing the licensing of crypto businesses. China has adopted certain regulations prohibiting certain distributions of certain digital assets as well as their ownership, while other countries, like India, are reportedly seriously considering such bans. Legislation impacting the distribution, trading and use of crypto assets has also been proposed in both houses of the U.S. Congress. These laws, regulations or directives may directly and negatively impact the functionalities of World Network or the utility and/or availability of any WLD tokens you may own.

The technology underlying World Network may have flaws or errors or may otherwise fail to function as intended, which could negatively impact World Network’s usefulness to you or the willingness of new users to engage with World Network.

World Network may have coding errors or otherwise not function as intended, which may negatively affect your use of World Network and/or the functionality of WLD. Changes to World Network may have unintended adverse effects on WLD. It will be up to World Network governance, or other governance mechanisms such as those implemented through the Optimism Collective, as to whether any World Network coding errors or unintended functionalities that may be discovered remain unresolved or are addressed in some manner.

World Network may be the target of malicious cyberattacks or may contain exploitable flaws in its underlying code, or may be the target of other attacks to its integrity, any of which may result in security breaches. This may result in the security of World Network being compromised or World Network being subjected to attacks that frustrate or thwart its use.

World Network’s open-source structure and the various software applications and other interfaces built on or using World Network are still in an early development stage and are unproven. We are not able to provide you with assurances that any part of World Network or the means of creating, transferring, or storing WLD will be uninterrupted or fully secure. This may reduce the interest in, or use of, World Network and/or WLD. World Network or WLD could be subject to security attacks, including but not limited to double-spend attacks, 51% attacks, or other malicious attacks, which could materially and adversely affect any WLD you own and/or World Network itself.

World Network may also be the target of malicious social or presentation attacks, or the hardware associated with user adoption may possess vulnerabilities, which may result in unauthorized access to World Network, applications built on World Network, or other security breaches. If any part of World Network’s integrity is perceived to be in question or compromised, the reputation of World Network may suffer and users may decline to adopt, cut back on, or stop using World Network.

The success of World Network depends significantly on our ability to produce, distribute, and service a hardware device, known as the Orb, and its related software, which is used to produce a unique verified code, known as a World ID, for each user.

The success of World Network depends in large part on our ability to continue to manufacture and market the Orb hardware device and its related software in an economically and logistically practicable way. We currently rely on Tools for Humanity to manufacture and distribute Orbs under license from us. It is unclear whether Tools for Humanity will be able to continue to obtain reliable sources of component supply and provide sufficient and satisfactory manufacturing capacity that will enable us to meet our quality, price, engineering, design and production standards, as well as the production volumes expected by us to successfully meet our user onboarding objectives. Failure of Tools for Humanity to deliver sufficient numbers of Orbs to designated jurisdictions or significant delays and/or cost overruns, including as a result of factors beyond their or our control, such as problems with downstream suppliers and vendors, could slow the process of onboarding new users and potentially reduce global interest or confidence in World Network, which could adversely impact any monetary value there may be in WLD tokens.

We rely on third-party service providers for certain aspects of our operations, including identifying and vetting operators of Orbs, and any interruptions in services provided by these third parties may impair our ability to support our network.

In addition to the production of Orbs, we currently or may in the future rely on third parties, including Tools for Humanity, in connection with other aspects of the Project. This includes identifying and vetting operators of Orbs who are the persons directly responsible for using the Orb to onboard new users and certain software development projects.

Adoption and use of the Protocol in a given jurisdiction significantly depends on our ability to attract qualified persons or entities to introduce Worldcoin users to the platform. It may be challenging to maintain qualified persons to undertake this task if the cost of utilizing such persons exceeds what is economically feasible for us to directly or indirectly pay, or if the cost to acquire, rent and/or operate the Orbs is prohibitively expensive for those seeking to operate them in a given jurisdiction. Various factors could result in an undersupply or total lack of availability of qualified persons to perform these functions in one or more jurisdictions, impeding adoption and, potentially, the benefits of the Protocol.

If security or data privacy breaches occur or if there are incidents of other unauthorized or improper access to, use of, or destruction of user data, the ability of World Network to continue functioning could be disrupted or terminated.

As part of World Network, we, or Tools for Humanity on our behalf, may collect certain categories of personal data, including sensitive personal data, for permissible purposes such as to comply with any applicable legal KYC/AML requirements. Any failure to prevent or mitigate security breaches or improper access to, use of, or disclosure of any such data could adversely affect World Network, including through a diminished ability to retain or attract new users, and disruption to our operations. We rely on third-party service providers to host or otherwise process some of the data we collect, and any failure by such third parties to prevent or mitigate security breaches or improper access to, or disclosure of, such information could have similar adverse consequences on World Network. This risk is enhanced in certain jurisdictions with stringent data privacy laws.

The global benefits of World Networkdepend on the successful ongoing operation of Orbs to onboard new users. Operating Orbs may be unfamiliar to both operators and users in various jurisdictions and Orbs could be misused by those operating them.

There can be no assurance that Orb operators, users or other third parties will be able to operate the Orbs properly. Any accidents, injuries or damages resulting from such failure to operate the Orbs properly could harm World Network’s reputation, result in adverse publicity and claims against us, and have a negative effect on the ongoing adoption and use of World Network.

We are not able to control or predict the actions of Orb operators, users or third parties, and we may be unable to protect or provide a safe environment for these operators, World Network users, or third parties seeking to interact with World Networkor accept WLD for payment as a result of certain actions by operators, users, or other third parties. Such actions may result in injuries, property damage, or loss of life for operators, users and third parties, reputational damage to World Network, or significant liabilities for us. Although we currently oversee a third party vendor, Tools for Humanity, that administers certain qualification processes for operators, these qualification processes may not expose all potentially relevant information and are limited in certain jurisdictions according to national and local laws. Any third-party service providers we use may fail to provide the necessary services adequately or may disclose information that could be relevant to a determination of eligibility. Consequently, there could be complaints, as well as actual or threatened legal action against us related to operator conduct which could adversely affect our ability to continue to support World Network.

If operators, or individuals impersonating operators, engage in criminal activity, misconduct, or inappropriate conduct or use the Protocol as a conduit for criminal activity, consumers may not consider World Network or applications built on World Network safe, and World Network may receive negative press coverage as a result of our use of such operators, which would adversely impact the adoption or even the viability of World Network or any of its components.