We conducted legal due diligence to ensure that the AvataraCoin Digital Tokens meet the legal requirements of the Initial Coin Offering at the ICO stage. According to our lawyers and after performing the Howey test, we can state that these tokens are not securities and do not need registration. The Avatara project focuses on the legislative regulation of ICOs, digital tokens and transactions with crypto currency to provide users and investors with safe and reliable solutions.
Avatara’s tokens are not mined by users or other companies. Avatara’s tokens are always supported by funds of Avatara’s service customers, so Avatara’s tokens are always secured. The only exception is the preliminary generation of the digital token data for the Presale, the Pre-ICO or the ICO for consultants, lottery, Bounty campaigns, investors, shareholders and PR campaigns.
The AvataraCoin token is intended to maintain the Avatara ecosystem of services in 251 countries of the world – it provides the owner with the opportunity to get the service provided by an Avatara person and an Interpreter. The AvataraCoin token is intended for any services and any internal payments within the infrastructure of the eco-system of Avatara’s services. The AvataraCoin token is also used for free bonus reward to investors and partners of the Avatara system. AvataraCoin is a Service Token, and the cost of its transactions is very important. Therefore, this token can be transferred later to Graphene (EOS) or another technology with a low transaction cost accompanied by amendments to this agreement.
If a token buyer who receives tokens during any of the ICO stages wishes to have a return on investment, he/she can sell his/her tokens at specialized exchanges at the current market value when the tokens are placed there.
In order to avoid any possible legal incidents, we prohibit participation of US citizens in the ICO. If, however, the US citizen bypasses this prohibition and participates in ICO, and a legal problem arises later in connection with this, subject to this agreement and the document, we assign all costs for conducting this case to the violator of this prohibition, plus he/she will have to pay us the amount of damage in triple amount of the cost of conducting this case. By the fact of purchasing AvataraCoins, each ICO participant should agree to this provision.
In order to avoid any legal incidents associated with the state regulation of the ICO, all ICO investments will be transferred to the «Media Development Fund» and will be further transferred from the fund to the main business. This is necessary for the legal purity and smooth operation of Avatara after it starts working all over the world.
If a legislator influencing us requires any changes regarding already completed ICO, we will post this information on Avatara’s official website. Each token owner should be obliged to review the legal section on Avatara’ website once a month and, if necessary, resolve the issues indicated therein or contact the manager to clarify legal nuances. In the absence of such actions, Avatara should reserve the right to act at its own discretion to remain within the legal framework.
Avatara should do everything to comply and not to violate the ICO legislation, but since the ICO legislation around the world is uncertain, all of the above should be our preliminary agreement with each ICO participant and should be able to be changed by us in case of changes of the legislation influential to us. We will notify all ICO participants via Avatara’s website about this. We should guarantee that we will introduce any amendments to this agreement taking into consideration the interests of all ICO participants subject to the legislation. Avatara should not guarantee profits to ICO participants and makes a disclaimer in case if an ICO participant does not receive the desired profit. All cases given herein should be provided as examples and should not be able to be considered as guides to action. Avatara should not be responsible for any actions of ICO participants leading to any consequences. The original of this document in any situations requiring intervention of third parties (courts, arbitration, etc...) is a document in Russian. Only the Russian version of this document should be deemed to be an original. If you have legal questions, you can apply to our legal department in writing, and we will answer your questions.
You should accept a waiver of guarantees of incomes or profits. The information should be provided for informational purposes only and should not be an offer or call to sell shares or securities on the Avatara platform or any other associated or affiliated company. The above tokens should not be securities. The User should acknowledge, understand and agree that AvataraCoin should not be securities and should not be registered in any public institution as collateral, and shall not be considered as such for investments or for stock-market games. The User should acknowledge, understand and agree that the ownership of these tokens does not grant the User an exclusive right, but only provides an opportunity to receive profit, income or other payments or revenues related to acquisition, storage, management or disposal, execution, repurchase or expiration of validity of any right, interest, ownership or privilege on the Avatara platform or any other assets of the Avatara project, in whole or in part. No guarantees should be available that AvataraCoin will grow in price. If this happens, no guarantees should be available that the rate of these tokens will not decrease, as well significantly, due to some unforeseen circumstances or events beyond the control of the developers, or due to force majeure circumstances.
Risks associated with Ethereum. AvataraCoin should be issued on the Ethereum blockchain. In this regard, any failure or malfunctioning of the Ethereum protocol can lead to the fact that the trading network of the above tokens will work in an unforeseen manner.
Regulatory uncertainty. Blockchain related technologies should be subject to supervision and control by various regulatory bodies around the world. The tokens can be regulated by them, including restrictions on the use or possession of digital tokens, such as AvataraCoin which may slow or limit functionality or other of their properties in the future.
The tokens are not an investment. AvataraCoin should not be some sort of official or legally binding investment. Due to unforeseen circumstances, appearance of new laws or regulations relating to these tokens in a country which may affect this document and the Avatara Company (an issuer of these tokens), the goals, objectives, wordings set forth herein should be allowed to be adjusted to meet these changes. Despite the fact that we intend to implement all provisions outlined herein, all persons and parties involved in the purchase of the above mentioned tokens should do so at their own risk and should not be able to make any claims to each other in any form, in any way, at any time, under any changes and in any field. As of the applicable legislation, investments in tokens should be donations in return of which you receive tokens.
Quantum computers. Such technical innovations as quantum computers can be dangerous for crypto currencies including Avatara’s tokens.
Risk of loss of funds. Funds from fundraising should not be insured in any way. If they are lost or lose their value, there is no private or state insurance representative that buyers can contact.
Return of funds. If a user replenished his wallet on the Avatara platform and received Avatara’s tokens, but changed his/her mind about using them, he/she should be able to withdraw them from the system and sell them at the exchange where they can be purchased and sold when these tokens are registered at the exchange. This may be the internal exchange of Avatara or the external one.
Risks of using new technologies and development. Avatara’s tokens should be a new and relatively not proven technology. In addition to the risks mentioned herein, there should be additional risks that the team of the Avatara platform cannot foresee.
Establishing a number of tokens. The number of tokens you receive for investment in the form of payment with crypto currency or fiat currency should be established as of the day of payment.
Due to the possible increase in transaction costs, Avatara should change the technology platform on which tokens are located. These risks should be able to materialize in other forms of risk than those indicated here. The listed risks should be considered as force majeure, and Avatara should not be responsible for them.
Avatara should not be responsible for the obligations that users of Avatara’s services provide to each other. Avatara should be just an intermediary between users of Avatara’s services. Avatara should not be obliged for any responsibility for an Avatar person if he/she violates any laws of his/her country. The function of the Avatara platform should be only to provide the opportunity of interaction of all Roles in Avatara’s services and secure payment for services in the system.
Integration. This Agreement should constitute the entire agreement between the parties with respect to the subject matter hereof. All previous agreements, discussions, representations, warranties and conditions should be compiled herein. There should be no warranties, representations, conditions or agreements, express or implied, between the parties, except as expressly set forth herein. This Agreement should be able to be changed unilaterally by Avatara which shall be published on Avatara’s official website. The original language hereof should be Russian, and all proceedings related hereto should be able to be conducted only in Russian, and parties can only appeal to this Russian-language document. All parties and participants in the interaction regarding Avatara should agree with this statement and confirm consent with these terms of cooperation by the facts of interaction with Avatara.