Potential Risks

Numerous risks exist in the development, maintenance and operation of Heartrate, many of which are beyond HeartRate's control. Each $HTR token participant should carefully read, understand and consider the following risks, and carefully decide whether to participate in the token swap program. Participating in the $HTR token swap program will assume that the participant has fully understood and agreed to accept the following risks:

• Legal Policy and Regulatory Risk

Crypto tokens are being or may be regulated by authorities in various countries. In various countries, $HTR may be defined as virtual goods, digital assets or even securities or currencies at any time, so in some countries, according to local regulatory requirements, $HTR may be prohibited from trading or holding. If the regulatory body issues relevant regulations, the Heartrate Foundation may be ordered to suspend or terminate any token swap plan. The development, marketing, promotion or other aspects of Heartrate may also be severely affected, hindered or terminated. As regulatory policies may change at any time, existing regulatory approvals or tolerances for Heartrate or this public sale in any country may be temporary. If the $HTR public swap program is terminated early, the holder may only be partially refunded the amount paid due to the price fluctuation of Eth and the expenditure of the Heartrate Foundation.

• Project Team Risk

At present, there are many teams and projects in the field of blockchain technology. The competition is so fierce in the market that exerts a great pressure on the project. Whether Heartrate can break through among many excellent projects and get widely recognized, which is not only related to its own team ability, vision planning, etc., but also affected by market competition, including the possible vicious competition. The core members of the Heartrate community have many years of experience in the insurance industry and blockchain technology, and can invite more talents in the blockchain technology and insurance fields to join the community, but it cannot be ruled out that there will be core community members leaving, internal conflicts, etc., leading to the possibility of a negative impact on Heartrate as a whole.

• Technical Risk

Computer technology is constantly evolving, and cryptography keeps advancing as well. Absolute security cannot be guaranteed at any time, which may lead to the theft, disappearance, destruction or devaluation of the holder's $HTR. Although the Heartrate Foundation will strive to maintain the security of the Heartrate network, there is no guarantee that Heartrate does not have weaknesses or permissions, and anyone may intentionally or unintentionally bring weaknesses or flaws to Heartrate's core infrastructure. However, Heartrate Foundation cannot prevent or remedy these through the security measures it employs, probably resulting in the loss of the participant's $HTR or other digital tokens. In addition, the source code of Heartrate may have flaws, errors, defects and loopholes, which may make users unable to use certain functions, expose users' information or cause other problems. If such defects do exist, they will impair the use of Heartrate, affecting its stability and/or security, and thus negatively influence the value of $HTR. Open source code is based on transparency to facilitate community-sourced code identification and problem solving. The Heartrate Foundation will work closely with the Heartrate community to continuously improve, optimize and perfect the source code of Heartrate in the future. The rapid development of Heartrate will be accompanied by a sharp increase in transaction volume and demand for processing issue. If the demand for processing exceeds the load that can be provided by the nodes in the network at that time, the HeartRate network may be paralyzed or stagnant, and erroneous transactions may occur. In the worst case, anyone's $HTR may be lost. These events will likely damage the use, stability and security of Heartrate and its value. In addition, Heartrate is still in the development stage, and due to the technical complexity of the Heartrate system, the Heartrate Foundation may face unpredictable or insurmountable difficulties from time to time. Therefore, the development of Heartrate may fail or be abandoned at any time for any reason (such as lack of funds). Failure or abandonment of development will result in the failure of delivering $HTR to the participants of this swap program.

• Security Risk

Attacks from outside may cause the Heartrate system to suffer negative effects, stagnation, paralysis or even calculation errors, and thus cause the above transactions to be delayed or even temporarily unable to execute, and may also cause data errors, crashes or loss, causing damages to the availability, reliability, security, and the value of $HTR. In addition, there may be attempts to steal funds from the public sale received by the Heartrate Foundation (including those that have been converted to fiat). Such theft or attempted theft may affect the Heartrate Foundation's ability to fund the development of Heartrate. Although the Heartrate Foundation will take steps to protect crowdfunding funds, theft is still difficult to completely prevent.

Other Possible Risks

• Source Code Upgrade Risk

The source code of Heartrate is open source and may be updated, amended, modified or changed from time to time by any member in the Heartrate community. No one can predict or guarantee the accurate results of an upgrade, correction, modification or change. Therefore, any upgrades, corrections, modifications or changes may result in unforeseen or unpredictable results that could materially and adversely affect the operation orr the value of $HTR.

• Risk of Unauthorized $HTR Claiming

Anyone who gains access to the registered email address or registered account by decrypting or cracking the $HTR holder's password will maliciously obtain the $HTR token of the $HTR holder. Accordingly, the holder's $HTR tokens may be sent to someone else's $HTR address, and this sending is irrevocable and irreversible. Each $HTR holder shall take measures such as the following to properly maintain the security of its registered email or registered account: (i) use complex, high-security passwords; (ii) not open or reply to any fraudulent emails; (iii) Strictly keep confidential or personal information confidential and take other relevant security measures.

• Market Risk

The value of $HTR is largely determined by the market development and user acceptance to the Heartrate platform. HeartRate does not expect to be so popular, prevalent, or widely used in a short period of time after its release. In the worst case, Heartrate may even be marginalized for a long time, attracting only a small number of users. In contrast, a very large portion of $HTR demand may be speculative in nature. Lack of users could lead to increased price volatility in $HTR market

and affect HeartRate's long-term development. When this price fluctuation occurs, Heartrate Foundation will not and will not be responsible for stabilizing or affecting the market price of $HTR.

• Liquidity Risk

$HTR is neither a currency issued by any individual, entity, central bank or national organization, nor is it any hard asset or backed by other credits. The circulation and trading of $HTR in the market is not the responsibility or pursuit of Heartrate Foundation. Transactions of $HTR are based solely on the consensus of the relevant market participants on its value. No one is obligated to exchange any $HTR from a $HTR holder, nor can anyone guarantee the liquidity or market price of $HTR at any time to any degree. If the holder wants to transfer $HTR, the $HTR holder needs to find one or more interested parties to exchange. This process can be expensive, time-consuming and might be ultimately unsuccessful. Additionally, there may be no crypto token exchanges or other marketplaces listing $HTR for public trading.

• Price Volatility Risk

When traded on the open market, crypto tokens typically fluctuate wildly in price. Short-term price shocks occur frequently. This price may be denominated in Bitcoin, Ethereum, USD or other fiat currencies. Such price fluctuations may be caused by market forces (including speculative buying and selling), regulatory policy changes, technological innovations, the availability of exchanges, and other objective factors, and such fluctuations also reflect changes in the balance of supply and demand. Regardless of whether there is a secondary market for $HTR transactions, Heartrate Foundation is not responsible or obligated to stabilize any $HTR transactions in the secondary market and doesn't concern. The risk involved in the transaction price of $HTR shall be borne by the $HTR trader.

• Competitive Risk

The underlying protocol of Heartrate is based on open source computer software. No one claims copyright or other intellectual property rights to the source code. Therefore, anyone can legally copy, reproduce, design, modify, upgrade, improve, recode, reprogram or otherwise exploit Heartrate's source code or underlying protocol to develop competing protocols, software, systems , virtual platforms, virtual machines or smart contracts to compete with Heartrate, or even surpass or replace Heartrate, over which HeartRate Foundation has no control. Under no circumstances will Heartrate Foundation be able to eliminate, prevent, limit or reduce such competion or scenario to compete with or replace Heartrate.

• Risk of insufficient information disclosure

As of the release date of this Whitepaper, Heartrate is still in the development stage, and its philosophy, consensus mechanism, algorithm, code and other technical details and parameters may be updated and changed frequently. Although this Whitepaper contains the latest key information of Heartrate, it is not complete and will be adjusted and updated by the Heartrate Foundation from time to time for specific purposes. The Heartrate Foundation is incapable and has no obligation to keep participants informed of every detail of Heartrate development (including its progress and expected milestones, whether delayed or not), so $HTR holders inevitably fail to access timely and adequate information as to Heartrate development . Adequate disclosure is avoidable and reasonable.