Risks Related to Employee Benefit Plans and Individual Retirement Account
In some cases, if you fail to meet the fiduciary and other standards under ERISA, the Code or common law as a result of an investment in our tokens, you could be subject to liability for losses as well as civil penalties.
There are special considerations that apply to investing in our tokens on behalf of pension, profit sharing or 401(k) plans, health or welfare plans, individual retirement accounts or Keogh plans. If you are investing the assets of any of the entities identified in the prior sentence in our tokens, you should satisfy yourself that:
your investment is consistent with your fiduciary obligations under applicable law, including common law, ERISA and the Code;
your investment is made in accordance with the documents and instruments governing the trust, plan or IRA, including a plan’s investment policy;
your investment satisfies the prudence and diversification requirements of Sections 404(a)(1)(B) and 404(a)(1)(C) of ERISA, if applicable, and other applicable provisions of ERISA and the Code;
your investment will not impair the liquidity of the trust, plan or IRA;
your investment will not produce “unrelated business taxable income” for the plan or IRA;
you will be able to value the assets of the plan annually in accordance with ERISA requirements and applicable provisions of the applicable trust, plan or IRA document; and
your investment will not constitute a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.
Failure to satisfy the fiduciary standards of conduct and other applicable requirements of ERISA, the Code, or other applicable statutory or common law may result in the imposition of civil penalties, and can subject the fiduciary to liability for any resulting losses as well as equitable remedies. In addition, if an investment in our Gypsy token constitutes a prohibited transaction under the Code, the “disqualified person” that engaged in the transaction may be subject to the imposition of excise taxes with respect to the amount invested.
