Risk Disclosure and Future Outlook

10.1 On-Chain System Operational Risks

Any on-chain system, especially Olympus Pact as an underlying financial protocol, inevitably faces potential risks at the technical level. Although we have maximized system stability in our architectural design through multi-chain distribution, modular decoupling, multi-signature contracts, and grayscale upgrade mechanisms, smart contracts may still contain unknown vulnerabilities or trigger edge-case errors under high concurrency or extreme market conditions. Meanwhile, node scheduling and data synchronization mechanisms for cross-chain bridges, if attacked or desynchronized, may also impact cross-chain asset flows. In response, Olympus Pact has established a dedicated Security Audit Committee and deployed an early warning and circuit breaker system that automatically suspends partial module execution logic when key operational indicators reach warning thresholds, ensuring system controllability and a principle of minimal damage. We believe that continuous evolution, community co-auditing, and layered governance are the best ways to defend against system risks.

10.2 Economic Model Adjustment Mechanism

While ensuring decentralized autonomy, the Olympus Pact economic system must also possess sufficient flexibility and dynamic adjustment capabilities. As the core token within the sovereign protocol, PHI’s supply strategy, reward frequency, yield multiplier, burn rules, and incentive weights are all dynamically assessed and adjustable based on real-time on-chain data. The protocol’s built-in “Economic Model Adjustment Committee” will periodically propose parameter tuning plans based on on-chain performance and implement them upon approval by the DeLand Signers' Assembly. In addition, when systematic anomalies arise in the on-chain economy, the preset “Economic Circuit Breaker Mechanism” will automatically suspend minting or reward distribution processes to protect signers' interests from being diluted. We fully recognize that designing a sustainable, counter-cyclical financial model must include self-regulation capabilities rather than a rigid static structure.

10.3 Legal and Regulatory Considerations

In the process of building a global protocol system, Olympus Pact has always adhered to the principle of “technological neutrality and regulatory compatibility.” We do not issue any security-like tokens, do not conduct centralized sales, do not promise fixed returns, and do not operate with financial gain as the primary purpose. What we build is a fully open, permissionless, and reusable on-chain governance system, not a financial service provider targeting specific jurisdictions. Regarding sensitive compliance components such as stablecoins, RWA (Real World Asset access), and identity systems, we have begun communication with legal advisors in multiple jurisdictions to ensure that the protocol’s operational mechanisms and user interfaces do not touch compliance red lines. In the future, the Olympus Pact Foundation will also initiate the establishment of a “Global Compliance Research Group” to engage with institutions worldwide and promote the healthy development of the industry.

10.4 Our Future Outlook and Globalization Plan

We firmly believe that the financial systems of the future will be built on more open, verifiable, and collaborative on-chain sovereign structures. Olympus Pact is not a simple replacement of the old paradigm; it represents a full-scale upgrade from foundational protocol logic to user participation models. Within the next three years, we aim to deploy Olympus Pact on more than 10 mainstream Layer1 / Layer2 networks, achieve secure mapping of on-chain identity systems with real-world identities, and promote the new civilizational concept of “signature is governance” globally. At the same time, we will construct more on-chain application scenarios integrated with education, research, and public infrastructure, making Olympus Pact not merely a financial tool but the prototype of a truly future-facing digital republic. We do not predefine the boundaries of the future, but we will unwaveringly stand at the forefront of building its new order.