Risk Disclosure Statement

This risk disclosure is intended to provide a detailed overview of the potential risks associated with participation in the NUBX and NUBX‑Y ecosystem. While our design emphasises security and compliance, there are inherent risks in any financial product. Participants should carefully read and understand the following before engaging with our tokens or yield programmes. This statement does not replace professional legal or financial advice.

Market & Price Risk

Gold prices fluctuate due to macroeconomic factors such as interest rates, currency movements, geopolitical events and supply/demand dynamics. Although NUBX is pegged to physical gold, the value of that gold in fiat terms can rise or fall. Investors may experience volatility in their holdings. Additionally, liquidity in secondary markets may vary, making it difficult to convert tokens to cash quickly at favourable prices.

Regulatory & Legal Risk

The regulatory landscape for digital assets is evolving. Future changes in laws or regulatory approaches: whether in the United Arab Emirates, India, the United States or other jurisdictions, may affect our ability to offer services, maintain licences or distribute tokens. Rules regarding custody, redemption and anti‑money laundering procedures may change, requiring modifications to our contracts or operations. Participants must comply with local regulations; restrictions may apply in certain countries.

Custodial & Counterparty Risk

Physical gold is stored with third‑party custodians. While these custodians are vetted and insured, there is always a risk of loss or delay due to theft, fraud, operational error or force majeure. If a custodian fails or becomes insolvent, the retrieval of assets may be delayed. Similarly, lending partners in NUBX‑Y may default on loans. Although loans are over‑collateralised, there can be a shortfall if collateral values decline or if enforcement is delayed.

Smart Contract & Technology Risk

NUBX and NUBX‑Y rely on smart contracts deployed on blockchains. Bugs, vulnerabilities or malicious attacks could lead to unintended behaviour, including the loss of tokens. Although contracts are audited, no code is completely risk‑free. Network congestion or forks can also affect transactions. Participants should ensure they use official contract addresses and remain alert to phishing or scam attempts.

Security & Operational Risk

Secure handling of private keys is essential. If a user’s keys are compromised, their tokens may be irretrievably lost. Nubia implements rigorous security protocols, but individual users must also practice cyber hygiene. Furthermore, operational errors, hardware failures or natural disasters could disrupt services temporarily. We maintain backup systems and disaster recovery plans, but downtime cannot be entirely ruled out.

Yield & Credit Risk (NUBX‑Y)

Yields from NUBX‑Y are not guaranteed. Borrowers may default, markets may shift and interest rates may decline. There is a possibility that returns will be lower than expected or even negative after fees. Past performance is not indicative of future results. Participants should evaluate their risk tolerance and consult advisers before staking their tokens.

Redemption & Settlement Risk

Redemption of NUBX for physical gold or fiat is subject to compliance checks, operational procedures and partner availability. Redemption may be delayed if there is high demand, insufficient liquidity with dealers, or unexpected disruptions. Costs associated with shipping and handling may vary, affecting the net amount received by the user.

AML/KYC & Sanctions Risk

Participation requires identity verification. Failure to comply with KYC or providing false information will result in denial of service. If your jurisdiction imposes sanctions or prohibits interaction with certain entities, you must ensure that your activities do not breach those laws. We are obliged to report suspicious transactions to relevant authorities.

Tax Risk

Tax treatment of tokenised assets differs by jurisdiction. Transactions may trigger capital gains, value‑added taxes or other liabilities. Participants must seek professional tax advice and comply with local tax laws. Nubia does not provide tax guidance and bears no responsibility for users’ tax obligations.

By participating in NUBX or NUBX‑Y, you acknowledge that you understand these risks and that you take full responsibility for your decisions. We encourage you to conduct your own due diligence and consult with legal, financial and tax professionals.