Token Disclaimer

1. $CAVE IS A UTILITY TOKEN

$CAVE is a utility token deployed on Arc, Circle's USDC-native L1. Its designed purposes are:

• To be burned via on-chain sink mechanisms approved by holder governance vote. Specific burn use cases (e.g. proposal submission stake, agent-specific sinks, treasury operations) are set by the DAO post-launch and are not pre-committed at TGE.
• To be staked in exchange for seasonal emission rewards.
• To confer governance voting rights within the CaveBro DAO.

$CAVE has no other designed purpose. It is a tool for participating in the CaveBro ecosystem, not a financial product.

2. $CAVE IS NOT A SECURITY

$CAVE does not constitute a security, investment contract, share, bond, derivative, or any other financial instrument under the laws of any jurisdiction, to the best of our knowledge and intent.

$CAVE does not represent:

• Equity or ownership in any company, legal entity, or organisation.
• A claim to profits, revenue, or dividends from CaveBro DAO activities.
• A debt instrument or obligation of any kind.
• A managed investment where you rely on the efforts of others to generate a return.

Staking rewards are emitted according to a publicly documented seasonal schedule linked to ecosystem burn rates. They are not profit distributions — they are protocol emissions designed to incentivise token holding and ecosystem participation.

3. NOT FINANCIAL ADVICE

Nothing on this website, in the CaveBro DAO Discord, on the official X/Twitter account, or in any other communication from CaveBro DAO constitutes financial advice, investment advice, trading advice, or any other form of professional advice.

CaveBro DAO does not recommend that any person acquire, hold, stake, or dispose of $CAVE. All decisions regarding $CAVE are yours alone and you bear full responsibility for those decisions.

4. NO EXPECTATION OF PROFIT

You should acquire $CAVE only if you intend to use it within the CaveBro ecosystem — to participate in governance, to stake in the protocol, or to engage with any burn sinks the DAO approves post-launch.

You should not acquire $CAVE with any expectation that its value will increase. The price of $CAVE may decrease to zero. Any price appreciation, if it occurs, is incidental and not a purpose of the token design.

5. RISK FACTORS

Acquiring and holding $CAVE involves substantial risks, including but not limited to:

• Complete loss of value: $CAVE may become worthless. You may lose the entire amount spent acquiring it.
• Smart contract risk: The $CAVE token contract, staking contract, and burn contract may contain bugs or vulnerabilities that result in loss of tokens.
• Liquidity risk: There may be insufficient market depth to sell $CAVE at any given time. You may be unable to exit your position.
• Regulatory risk: Regulators in one or more jurisdictions may take action that restricts, bans, or imposes requirements on $CAVE, potentially making it unusable or worthless.
• Network risk: The Arc network may experience outages, forks, or degradation that prevents access to your tokens. As a relatively new chain, Arc carries the additional risk of less battle-tested infrastructure than older blockchains.
• Ecosystem risk: If the CaveBro ecosystem fails to grow, burn rate may be insufficient to sustain meaningful staking rewards or token value.
• Governance risk: DAO decisions are made by token holders whose interests may not align with yours.
• Mint authority risk: While the mint authority is held by a multisig on Arc, compromise of multisig signers could result in unauthorised token issuance.
• Founder concentration risk: The founding team holds 15% of the total supply (subject to vesting). Disposal of this allocation could exert downward price pressure.

6. TOKEN SUPPLY AND EMISSION

Total supply at genesis: 100,000,000 $CAVE.

$CAVE is mintable. Additional tokens may be minted according to the seasonal emission schedule documented in the CaveBro DAO Constitution. Specifically:

• Seasons 1 and 2: fixed genesis emission from the staking rewards reserve allocation.
• Season N (where N ≥ 3): emission equals the total tokens burned in season N-2.

Minting is controlled by a multisig wallet. Minting outside of the documented schedule constitutes a breach of the DAO Constitution and would require supermajority governance approval.

The mint authority may be burned (permanently removed) by DAO governance vote in the future if the community decides the emission model should be made immutable.

7. FOUNDING TEAM ALLOCATION

The founding team allocation totals 15,000,000 $CAVE (15% of total supply), split into two sub-pools:

• Founder Allocation Pool — 5,000,000 $CAVE (5%): distributed across up to 10 hand-picked founders (core team and earliest contributors). Per-founder allocation is set at the founder's discretion and disclosed publicly at TGE. If fewer than 10 founders are named at TGE, the remaining slots stay un-minted; additions later require a governance vote.
• Strategic Team Reserve — 10,000,000 $CAVE (10%): held for the founding developer and future strategic hires (including VCs and strategic partners admitted after TGE). Allocations from the reserve are made by the founding developer subject to the same vesting schedule.

Both sub-pools are subject to the same vesting schedule:

• A 3-month cliff from the date of token generation event (TGE) — no tokens are transferable for the first 3 months.
• 12-month linear vesting following the cliff — tokens unlock gradually over the subsequent 12 months.

Vesting is enforced on-chain. The vesting schedule, individual founder allocations, and wallet addresses will be published publicly at TGE.

8. GEO-RESTRICTIONS

$CAVE is not available to persons located in or citizens of the following jurisdictions:

• United States of America (including its territories)
• Canada
• People's Republic of China
• Democratic People's Republic of Korea
• Iran
• Syria
• Cuba
• Sudan and South Sudan
• Any other jurisdiction where the acquisition of $CAVE would be unlawful

By acquiring $CAVE you represent that you are not located in, a citizen of, or acting on behalf of a person in any restricted jurisdiction.

9. TAX

Acquiring, holding, staking, or disposing of $CAVE may have tax consequences in your jurisdiction. CaveBro DAO does not provide tax advice. You are solely responsible for determining and meeting your tax obligations.

10. ECONOMIC BACKING — WHAT $CAVE IS BACKED BY

$CAVE does not represent a claim on any fixed asset, revenue stream, or future delivery. Its economic substance — to the extent there is any — derives from the DAO's ability to attract USDC inflows into the treasury across the revenue lines listed below, and from holders' belief that future treasury growth and burn-sink approvals will accrue to token value. None of the lines below are contractually guaranteed.

The DAO's documented revenue lines are:

1. Hedgents commodity-exposure infrastructure. Two Hedgents fleets contribute to this line. The v0 USDC treasury-management fleet on Solana mainnet (five live daemons: stable-yield, multiply on Kamino, hedged JLP, riskwatcher, researcher) generates performance and management fees from client deployments. The hgMETAL fleet on Solana devnet operates three products — hgMETAL (actively-rebalanced metals index), hgUSD (senior tranche with a defended 4.5% reserve floor), and hgYIELD (junior tranche, first-loss residual carry) — with forward-priced mint/redeem and protocol fees that, on mainnet, would flow to the DAO treasury under the same terms. Day-1 and for the foreseeable future, the v0 fleet is the largest single recurring revenue line; hgMETAL fleet revenue is contingent on mainnet bring-up and is not yet realised.
2. Agent inclusion fees (Phase 2 onward — see PLAN_v2 §Phased incubator evolution). One-time USDC fee paid by each developer whose agent passes the cohort selection vote. Baseline $1,000 USDC. Scales with the number of agents selected into cohorts.
3. Agent revenue share (Phase 2 onward). Each accepted agent commits a percentage of its gross revenue (indicative 5–10%) to the DAO treasury, remitted quarterly in USDC.
4. Treasury yield on deployed USDC. Treasury holdings are deployed into approved yield strategies (initially Hedgents). Returns compound back into the treasury.
5. Genesis NFT mint proceeds (one-time, at TGE) and ongoing royalties on secondary sales where Arc marketplace enforcement is supported.
6. DEX LP fees from CaveBro-seeded liquidity positions on the Arc-native DEX.
7. Phase 2.5 ticket-token raise fees + $CAVE burn pressure (gated, cohort-only). Each incubated cohort agent that reaches raise-readiness can run a per-project ticket-token raise through the DAO; the DAO captures an issuance fee + optional carry, and a portion of any $CAVE used to buy tickets is burned. Reserved for agents already incubated through Phase 2 — never permissionless. Operational only after maturity markers set in PLAN_v2 §Phased incubator evolution are met for a specific candidate.
8. External protocol stewardship (Constitution Art. VIII). Optional revenue-share commitments from protocols that opt into DAO governance as their timelock-bound parameter authority. Stewardship is not fee-bearing by default; any revenue contribution from a stewarded protocol is a separate proposal disclosed at acceptance. Inaugural stewardship target: Suffix Pool (domainmarket.registrai.cc) — design names CaveBroDAO as PARAM_ADMIN via timelock; operational once a CaveBroTimelock contract is deployed and the role is on-chain transferred. No stewardship revenue-share commitment exists for Suffix Pool at the time of this disclosure.

You should evaluate $CAVE on the basis of (a) Hedgents v0 fleet revenue today plus eventual hgMETAL fleet revenue once mainnet ships, (b) the DAO's ability to select and incubate Phase 2 cohort agents that deliver real revenue share, (c) the DAO's eventual operation of Phase 2.5 cohort raises, and (d) any future stewardship-linked revenue-share commitments — not on any single promised redemption flow. If items (b), (c), and (d) do not materialise, $CAVE is backed primarily by Hedgents performance fees, NFT mint proceeds, and DEX LP fees, which together constitute a small-business cashflow rather than ecosystem-scale revenue.

11. NO RECOURSE

CaveBro DAO is a decentralised autonomous organisation with no registered legal entity. There is no company, director, or officer against whom you may bring legal claims in respect of $CAVE. You acquire $CAVE with full understanding that your recourse in the event of loss is limited to on-chain governance mechanisms and the community dispute resolution processes described in the DAO Constitution.

CaveBro DAO · $CAVE on Arc · USDC-native · user-owned agents