10. Risk Description

Investors shall pay attention to the following risks existing in the project:

1) Compliance and Operational Risk

Compliance and operational risk refer to that if the AI MEDICAL platform violates local laws and regulations during the process of raising funds and doing business, which will cause that the operation cannot be continued. For this type of risk, measures taken by the operation team for avoiding risks are as follows:

• The operational team and decision-making committee will take

a distributed approach to eliminate single-point risks;

• Employ local professional lawyers where it conducts business, and design digital asset issuance, digital asset transactions, blockchain finance, blockchain applications and other businesses under the legal framework.

2) Market Risk

Market risk refers to the fact that if the AI MEDICAL platform is not accepted by the market, or is not used by enough users, and its business development is stagnant without enough profits support. For market risk, measures taken by the operation team for avoiding risks are as follows:

• Share the concept of the AI MEDICAL platform with the industry, learn from the operation experience of similar products, and optimize AI MEDICAL services. Rapidly incubate the platform ecosystem and generate profits by using the experience accumulated by the founding team in AI health and the medical market.

3) Technical Risk

The technical risk refers to that if there emerge major problems in underlying technology, which causes the AI MEDICAL platform to not achieve the expected functions and the key data will be tampered or lost. For technical risk, measures taken by the operation team for avoiding risks are as follows:

• Based on mature, open-source and secure blockchain technology. develop the AI MEDICAL system with a framework that has been approved and validated by commercial clients;

• After raising sufficient resources by a special committee, it can absorb more high-end talents from the industry to join the development team, which can lay a foundation, enrich strength and learn from the mature development experience.

4) Fund Risk

Fund risk refers to that if any major losses happen in the project fund, such as fund theft, fund loss, sharp depreciation of reserves, etc. For fund risk, measures taken by the operation team for avoiding risks are as follows:

• Reserves adopt multi-signature wallet + cold storage mode and are in joint charge of the decision-making committee. Under the 5-7 multi- signature mode, reserves will be at risk only when three directors cannot perform their duties at the same time.

• With rich risk control experience, the operation team can effectively control project risks and protect users' fundamental interests.