Token Disclaimer

1. $LOCAL IS A UTILITY TOKEN

$LOCAL is a blockchain-based utility token deployed on the Base network. Its designed purposes are:

• To be burned in exchange for gift codes redeemable for Pro subscriptions within CaveBro ecosystem apps.
• To be staked in exchange for seasonal emission rewards.
• To confer governance voting rights within the CaveBro DAO.

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

2. $LOCAL IS NOT A SECURITY

$LOCAL 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.

$LOCAL 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 $LOCAL. All decisions regarding $LOCAL are yours alone and you bear full responsibility for those decisions.

4. NO EXPECTATION OF PROFIT

You should acquire $LOCAL only if you intend to use it within the CaveBro ecosystem — to unlock Pro app access via gift codes, to participate in governance, or to stake in the protocol.

You should not acquire $LOCAL with any expectation that its value will increase. The price of $LOCAL 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 $LOCAL involves substantial risks, including but not limited to:

• Complete loss of value: $LOCAL may become worthless. You may lose the entire amount spent acquiring it.
• Smart contract risk: The $LOCAL 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 $LOCAL 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 $LOCAL, potentially making it unusable or worthless.
• Network risk: The Base network may experience outages, forks, or degradation that prevents access to your tokens.
• 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, 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 $LOCAL.

$LOCAL 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 holds 15,000,000 $LOCAL (15% of total supply), subject to:

• 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 and wallet addresses will be published publicly at TGE.

8. GEO-RESTRICTIONS

$LOCAL 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 $LOCAL would be unlawful

By acquiring $LOCAL 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 $LOCAL 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. 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 $LOCAL. You acquire $LOCAL 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 · $LOCAL · Base · Nothing leaves your device