TAO Risk

Bittensor (TAO)
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DESCRIPTION

Bittensor (TAO) is a decentralized, open-source, and permissionless machine learning network that transforms machine intelligence into a tradable commodity. It creates a peer-to-peer marketplace where AI models are shared, trained, and ranked by value, incentivizing collaboration and innovation in AI development. The TAO token is used for rewards, staking, governance, and payments within the network, fostering a decentralized economy for AI development.
How is Bittensor used?
‍Bittensor (TAO) is a decentralized machine learning protocol that uses its native token, TAO, for various purposes within the network. Here are the key ways TAO is used: Governance: TAO tokens are used to vote on proposals and changes to the Bittensor network, ensuring decentralized decision-making. Staking: Users can stake TAO tokens to participate in the consensus mechanism and earn rewards, contributing to the network's security and validation. Payment: TAO tokens are used as a means of payment for accessing AI services and applications built on the Bittensor network. This includes purchasing machine learning models and other AI-related services. Transaction Fees: TAO is used to pay for transaction fees and smart contract execution within the network, facilitating the exchange of machine learning models and services. Incentivization: TAO tokens are rewarded to users who contribute valuable data or computational resources to the network, incentivizing participation and driving innovation. Validation: Validators use TAO tokens to validate the responses and predictions provided by miners, ensuring the integrity and quality of the data and models being exchanged within the network.

Bittensor (TAO) Whitepaper:https://bittensor.com/whitepaper

‍RISKS OF TAO NETWORK
Investing in cryptocurrency and digital assets, such as Bittensor (TAO), carries inherent risks, including but not limited to:
(i) Volatility risk and liquidity risk
(ii) Regulatory risk
(iii) Security risk
(iv) Market risk
(v) Smart contract risk
(vi) Governance risk
(vii) Technological risk
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For additional information on risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be a complete overview of all such risks, and there may be other risks associated with exposure to TAO. We encourage all users to perform their own due diligence to assess the risks associated with TAO and to determine whether this level of risk is acceptable to them. Neither TAO nor Satstreet guarantees the value of TAO, and holders of TAO will not have any recourse to TAO or Satstreet if the value of TAO declines for any reason whatsoever.

‍SATSTREET EVALUATION OF TAO
Satstreet Inc. has reviewed and assessed TAO prior to making it available through our services and has concluded that TAO is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Satstreet will be required to halt, suspend, and then remove TAO from its platform as described in the Satstreet Inc. Services Risk Statement. Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about TAO, including an opinion that TAO is not itself a security and/or derivative. Based on publicly available information Satstreet has reviewed TAO, including, but not limited to, a review of the following: The creation, governance, usage, and design of TAO, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created TAO. The supply, demand, maturity, utility, and liquidity of TAO. Material technical risks associated with TAO, including any code defects, security breaches and other threats concerning TAO and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them. Legal and regulatory risks associated with TAO, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of TAO, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to TAO about whether TAO, or generally about whether the type of crypto asset, is a security and/or derivative.
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Last Updated: August 2025

Risk Statements

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