> For the complete documentation index, see [llms.txt](https://heroarenagame.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://heroarenagame.gitbook.io/docs/13.-risks-and-disclaimer.md).

# 13. Risks & Disclaimer

> **Read this section carefully.** Hero Arena Play is a Web3 project. Participating in the $HAP token sale, staking, gameplay rewards, or NFT trading involves real and substantial risk, including total loss of funds. This section is not legal advice — it is a transparent disclosure of risks specific to this project so that participants can make informed decisions.

### 13.1 Token-Related Risks <a href="#id-131-token-related-risks" id="id-131-token-related-risks"></a>

#### Volatility <a href="#volatility" id="volatility"></a>

$HAP is a cryptocurrency token. Its price can rise or fall sharply in short periods due to market conditions, project news, broader crypto cycles, or factors outside the team's control. **Tokens may lose all of their value.** Never participate with funds you cannot afford to lose.

#### Liquidity Risk <a href="#liquidity-risk" id="liquidity-risk"></a>

While Hero Arena Play will list on PancakeSwap V3 with locked liquidity, market conditions may produce periods of low trading volume during which large orders move price significantly or cannot be filled at expected prices.

#### Regulatory Risk <a href="#regulatory-risk" id="regulatory-risk"></a>

Cryptocurrency regulation is evolving worldwide. Future regulatory action by any government may restrict access to $$$$HAP as a security; participants are responsible for understanding their local regulatory environment.

#### Smart Contract Risk <a href="#smart-contract-risk" id="smart-contract-risk"></a>

Despite a third-party audit and bug bounty program, no smart contract is provably bug-free. Vulnerabilities discovered post-deployment could result in loss of funds. **Audits reduce risk; they do not eliminate it.**

### 13.2 Project Execution Risks <a href="#id-132-project-execution-risks" id="id-132-project-execution-risks"></a>

#### Roadmap Risk <a href="#roadmap-risk" id="roadmap-risk"></a>

The Roadmap reflects current intent and best estimates. Items may slip, be re-scoped, or be cancelled. While the team commits to transparent reporting on roadmap progress, no item should be considered guaranteed.

#### Team Risk <a href="#team-risk" id="team-risk"></a>

Hero Arena Play's team is currently pseudonymous. KYC will be completed before TGE, but team members are still individuals whose continued participation is not contractually guaranteed indefinitely. Loss of key personnel could affect development pace and project direction.

#### Competitive Risk <a href="#competitive-risk" id="competitive-risk"></a>

The Web3 gaming space is crowded. New competitors may launch superior products. Existing competitors may capture player attention. There is no guarantee Hero Arena Play will achieve or sustain the player base modeled in the Economy Design section.

#### Market Adoption Risk <a href="#market-adoption-risk" id="market-adoption-risk"></a>

GameFi as a category has produced few sustainable successes. Despite Hero Arena Play's game-first design, the broader market may continue to associate Web3 gaming with unsustainable economics, suppressing growth.

### 13.3 Game Economy Risks <a href="#id-133-game-economy-risks" id="id-133-game-economy-risks"></a>

#### Inflation Risk <a href="#inflation-risk" id="inflation-risk"></a>

Despite Hero Arena Play's deflationary design, real-world activity may diverge from modeled assumptions. If sinks under-perform versus emissions for sustained periods, $HAP supply could outpace demand.

#### Botting / Cheating <a href="#botting--cheating" id="botting--cheating"></a>

Sophisticated automation could bypass anti-cheat measures, extract rewards beyond intended levels, and damage the in-game economy. The team commits to ongoing anti-cheat investment but cannot guarantee perfect prevention.

#### NFT Value Risk <a href="#nft-value-risk" id="nft-value-risk"></a>

The value of in-game NFTs is determined by player demand and is not guaranteed. NFTs may lose value entirely if player interest declines, faction balance changes reduce a card's competitive viability, or the broader NFT market deteriorates.

### 13.4 Wager System Specific Risks <a href="#id-134-wager-system-specific-risks" id="id-134-wager-system-specific-risks"></a>

> **This section is critical for any user who wishes to participate in Wager Battles, Tournament Wagers, or the future Spectator Prediction Markets. Read it before staking any value.**

#### Skill-Based Wagering Legal Classification <a href="#skill-based-wagering-legal-classification" id="skill-based-wagering-legal-classification"></a>

Hero Arena Play's wager system is structured as **skill-based competitive wagering**, on the basis that match outcomes are determined entirely by player skill rather than chance. This places it in a different legal category than games of chance (gambling) in most jurisdictions. **However:**

* Legal classification varies significantly between jurisdictions
* Some jurisdictions classify any peer-to-peer monetary wager as gambling regardless of skill content
* Legal classification may change as regulators adapt to Web3 wager systems
* **No legal classification is guaranteed**, and Hero Arena Play makes no representation about the legality of wager participation in any specific jurisdiction

It is the **sole responsibility of each participant** to determine whether participation in Hero Arena Play's wager features is permitted under their local law before staking any value.

#### Restricted Jurisdictions for Wager Features <a href="#restricted-jurisdictions-for-wager-features" id="restricted-jurisdictions-for-wager-features"></a>

Hero Arena Play restricts wager features (Wager Battles, Tournament Wagers, future Spectator Prediction Markets) in:

* **United States** and all US territories
* **People's Republic of China** (Mainland)
* **Hong Kong SAR**
* **Sanctioned jurisdictions** under OFAC, UK HM Treasury, EU, and UN sanctions, including but not limited to: North Korea, Iran, Syria, Cuba, Crimea region, Donetsk region, Luhansk region, and any other comprehensively sanctioned territory

Players in these jurisdictions can still play free, non-wagered Hero Arena Play matches but cannot access wager features.

#### Warning to Players in the United Kingdom and European Union <a href="#warning-to-players-in-the-united-kingdom-and-european-union" id="warning-to-players-in-the-united-kingdom-and-european-union"></a>

The United Kingdom and European Union member states each have their own regulatory frameworks governing online wagering, prediction markets, and skill-based competitions. **Hero Arena Play does not currently geofence these jurisdictions but does not guarantee that wager participation is permitted under their local laws.** UK and EU residents who choose to participate in wager features do so under their own legal responsibility. Hero Arena Play reserves the right to add UK or EU restrictions at any time in response to regulatory developments.

#### Geofencing Circumvention is Forbidden <a href="#geofencing-circumvention-is-forbidden" id="geofencing-circumvention-is-forbidden"></a>

Players who attempt to circumvent jurisdictional restrictions through VPNs, proxies, falsified self-attestations, or any other means are in violation of Hero Arena Play's Terms of Service. Confirmed circumvention will result in:

* Permanent account ban
* **Forfeiture of any wager stakes in escrow**
* Forfeiture of any earned but unclaimed rewards
* Reporting to relevant authorities where legally required

If you are in a restricted jurisdiction, **do not attempt to access wager features**. The financial and legal consequences of circumvention fall entirely on the user.

#### Loss of Stakes <a href="#loss-of-stakes" id="loss-of-stakes"></a>

Wager Battle stakes are **escrowed by smart contract** and **transferred irrevocably to the match winner** upon match completion. There is no refund mechanism, no dispute resolution process, no chargeback path, and no platform recourse for losing players. **Every wager match risks total loss of the staked amount.** Wager only what you can afford to lose entirely.

#### Match Outcome Disputes <a href="#match-outcome-disputes" id="match-outcome-disputes"></a>

While Hero Arena Play employs server-side validation, replay systems, and anti-cheat measures, no system is perfect. In the event of a confirmed exploit, dishonest play, or smart contract bug affecting a wager match's outcome, Hero Arena Play will investigate and may at its discretion compensate affected players from the development treasury, but **makes no guarantee** of compensation. Participants accept this risk as a condition of participating in wager features.

#### Disconnect and Network Failures <a href="#disconnect-and-network-failures" id="disconnect-and-network-failures"></a>

If you disconnect from a match in progress — due to your own network failure, your device, or third-party infrastructure issues — the disconnect grace timer applies (default 90 seconds), after which you will be deemed to have surrendered and your wager will transfer to your opponent. **Network reliability is your own responsibility during a wager match.**

#### Addiction and Responsible Play <a href="#addiction-and-responsible-play" id="addiction-and-responsible-play"></a>

Wagering on game outcomes can be psychologically compelling and, for some individuals, can produce addictive behavior patterns similar to gambling. Hero Arena Play strongly encourages responsible play:

* Set a personal monthly wager budget and do not exceed it
* Do not wager funds needed for essential living expenses
* Take regular breaks; do not chase losses with progressively larger wagers
* If wagering is interfering with your wellbeing, work, relationships, or finances, stop immediately

If you or someone you know may be experiencing problem gambling behavior, free confidential help is available from organizations like the National Council on Problem Gambling and equivalent organizations in your country. Hero Arena Play is not a substitute for professional support if you are experiencing harm.

Hero Arena Play will offer self-exclusion tools post-launch that allow users to voluntarily disable their access to wager features for set periods.

#### Spectator Prediction Market Specific Risks (Phase 3-4) <a href="#spectator-prediction-market-specific-risks-phase-3-4" id="spectator-prediction-market-specific-risks-phase-3-4"></a>

The future Spectator Prediction Market introduces additional risks beyond Wager Battles:

* **Market manipulation.** Coordinated trading by spectators with insider information about a player's strategy could move prices unfairly
* **Liquidity risk.** Thin markets may be subject to large price swings on small orders
* **Match cancellation risk.** If a match is invalidated post-settlement (e.g., for confirmed cheating), market positions may be reversed; the precise resolution mechanism will be defined and disclosed prior to launch
* **Counterparty in the AMM.** Prediction market AMMs use shared liquidity pools; smart contract bugs in the AMM could affect all market participants

These markets will only launch after their dedicated audit cycle and only in jurisdictions where their legal status is sufficiently clear at the time of launch.

### 13.5 Operational Risks <a href="#id-135-operational-risks" id="id-135-operational-risks"></a>

#### Server / Infrastructure Outage <a href="#server--infrastructure-outage" id="server--infrastructure-outage"></a>

Game services depend on infrastructure including servers, RPC providers, and frontend hosting. Outages may temporarily prevent gameplay, block reward distribution, or affect Marketplace operation. Player NFT and token holdings remain safe (in self-custody) regardless of game-server availability.

#### Hacks & Exploits <a href="#hacks--exploits" id="hacks--exploits"></a>

Beyond smart contract risk, the project's web infrastructure (website, game servers, social channels) could be targeted by attackers. Always verify URLs and contract addresses through the [Official Links](http://localhost:63342/markdownPreview/573052622/markdown-preview-index-gkdqfm72f688tuo90450a5ciai.html#) section before any action involving funds.

#### Phishing <a href="#phishing" id="phishing"></a>

Attackers commonly impersonate Web3 projects on Telegram, Discord, and Twitter. Hero Arena Play team members **will never DM you first**, will never ask for your seed phrase, will never offer "exclusive presale access," and will never share contract addresses through unsolicited messages. Treat all such messages as scams.

### 13.6 Disclaimer <a href="#id-136-disclaimer" id="id-136-disclaimer"></a>

#### Not an Offer or Solicitation <a href="#not-an-offer-or-solicitation" id="not-an-offer-or-solicitation"></a>

Nothing in this whitepaper constitutes an offer to sell or a solicitation of an offer to buy any security or token. This whitepaper is for informational purposes only.

#### No Investment Advice <a href="#no-investment-advice" id="no-investment-advice"></a>

Nothing in this whitepaper is investment advice, legal advice, financial advice, or tax advice. Consult qualified professionals before making any decision involving your funds.

#### Forward-Looking Statements <a href="#forward-looking-statements" id="forward-looking-statements"></a>

Statements in this whitepaper regarding future plans, market opportunity, modeled economic outcomes, or roadmap delivery are forward-looking and speculative. Actual outcomes may differ materially.

#### Restricted Jurisdictions for the Token Sale <a href="#restricted-jurisdictions-for-the-token-sale" id="restricted-jurisdictions-for-the-token-sale"></a>

The $HAP token sale (IDO) is restricted from participation by residents of:

* **United States** (and all US territories)
* **People's Republic of China** (Mainland) and **Hong Kong SAR**
* **Sanctioned jurisdictions** under OFAC, UK HM Treasury, EU, and UN sanctions, including but not limited to: North Korea, Iran, Syria, Cuba, Crimea region, Donetsk region, Luhansk region

Wager features have additional jurisdictional restrictions described in Section 13.4 above.

**It is each participant's responsibility to determine whether their participation is permitted under local law.** Hero Arena Play reserves the right to expand the restricted list at any time in response to regulatory developments.

#### No Warranty <a href="#no-warranty" id="no-warranty"></a>

Hero Arena Play, its team, and its affiliates make no warranty, express or implied, regarding the project, the token, the game, or any related service, including without limitation any warranty of merchantability, fitness for a particular purpose, or non-infringement. Use is at the participant's own risk.

#### Limitation of Liability <a href="#limitation-of-liability" id="limitation-of-liability"></a>

To the maximum extent permitted by applicable law, Hero Arena Play, its team, and its affiliates shall not be liable for any direct, indirect, incidental, special, consequential, or exemplary damages arising out of or in connection with the project, the token, the game, or any related service.

## 13.7 Naming Disclosure

Investors and players should be aware that an unrelated project named "Hero Arena Play" with HERA token (contract 0x49c7295ff86eabf5bf58c6ebc858db4805738c01) was deployed on BNB Smart Chain in July 2021. That project is operated by a separate team unrelated to ours and has no shared codebase, ownership, or roadmap with this project.

As of 2026, the HERA project shows minimal activity (24-hour trading volume of approximately $3,000 across DEX listings) but maintains historical listings on CoinGecko, PlayToEarn, Bitget, and other directories. Our internal due diligence found no overlap in:

* Smart contract code (theirs uses a 100M-supply BEP-20 token with off-chain marketplace integration; ours uses a 1B-supply fixed token with on-chain wager settlement)
* Team identity or jurisdiction
* Development roadmap or live product

Hero Arena Play ($HAP) differentiates through:

1. Token economics — $HAP is a new BEP-20 deployed on BNB Chain for the 2026 mainnet launch
2. Core mechanic — trustless on-chain peer-to-peer wager battles, absent from the older project
3. Architecture — multi-signature treasury with 7-day timelock, scheduleId-based vesting, OpenZeppelin v5.x base
4. Deployment status — currently in BSC testnet (BSC mirror) with full open-source smart contracts available at github.com/HaGameFi/HeroArena\_contracts

We disclose this proactively to avoid confusion during due diligence by auditors, launchpads, exchanges, and investors. Should brand ambiguity create operational issues at later stages (e.g. CEX listing rejection due to name overlap), we reserve the right to consider a project rename, which would not affect token ownership, smart contract deployment, or community membership.

***

By participating in the HAP (token sale or holding), holding Hero Arena Play NFTs, or otherwise interacting with the Hero Arena Play ecosystem, you acknowledge that you have read, understood, and accepted the risks and disclaimers set forth in this section.