HEX is not a security. There aren’t actually any coins, they’re just numbers in a distributed database. No one is actually given anything. People can execute the code they choose, on their own, that changes some numbers in a counter. The code that edits some database values should only be modifiable by valid key holders who’ve signed a cryptographic message. Other code can be run by anyone if they like.
There is no common enterprise, there shall be no expectation of efforts of a promoter or third party. There is no expectation of profit from the work of others. People pay the PulseChain network to execute computations of their choosing, on their own. There is only an immutable compiled bytecode sitting on the PulseChain network. It can’t be changed. They’re just numbers living on the Internet. The code can do nothing on its own. People can run the code if they want to, or not. The code can do nothing on its own but sit there.
Users generate their own keys, no one else has keys to give them. Bonuses don’t actually take anyone else’s database values, they just add or subtract more or less database values based on the system state.
If you can, learn to code; or have the smartest coder or computer scientist you can find read over the code you plan to execute.
Blockchains, Smart contracts, and Cryptocurrencies, Are all cutting edge technologies, and as such, there is a risk, however small, of total failure. Software is hard. Computers are hard. Distributed software on distributed computers is harder. It’s a miracle this stuff works at all. Strong cryptography seems unlikely to be broken, but if it is, everything will probably be broken.
Bitcoin Miners run computations and mint their own BTC reward if their computation matches what the network consensus code requires.
HEX Stakers run computations and mint their own HEX reward if their computation matches what the network consensus code requires.
In either network you can run your own code on your own machine, or pay someone else to run the code your choose for you to mint your reward. In Bitcoin the code lives in the node, in HEX the code lives in the node at a contract address. Paying a fee is paying someone to run your code.
HEX is not an airdrop or a fork. You mint your own coins when you FreeClaim using BTC or transform ETH into HEX. A wonderful innovation! An airdrop requires someone else control the coins and give them to you. A fork requires that some code exist and be forked.
The Howey test
The Howey test defines what U.S. federal securities laws apply to, which the SEC administers.You must have no expectation of any benefit whatsoever from any ETH sent to the HEX contract or any HEX the origin address receives. You must have no expectation of profit from the efforts of others. You must have no reliance on the effort of others. HEX is just a piece of inert code at a contract address on the ETH network. It can do absolutely nothing on its own. Every HEX that ever exists is caused to exist by a user creating it himself per the rules of the code that he chooses to run that lives at an PulseChain contract address, and people might refer to as HEX, mining his own ETH block or paying an ETH miner to do it for him. Only you can mint your own HEX when you run the “leaveXfLobby” function’s code, as it requires your private key. Only you can run the “startStake” function’s code to stake your HEX, as it requires your private key. Staked HEX are actually “burnt” or “destroyed”. Only you can mint your own HEX when you run the “endStake” function’s code, as it requires your private key. The users themselves perform all the work. This is the same way that all BTC are caused to exist, people run code and “coins” are created when the network’s rules are met. Wherever possible you agree there is no investment of money. Wherever possible you agree there is no common enterprise. Charitable Donations may be sent directly to the contract by sending it ETH. If you want to join the AdoptionAmplifier system, you must use joinXfLobby function.
If you try to cheat the referral program by overwriting the code of the person that referred you with your own code, the HEX “User Chosen Software Assister” will ignore it. This means that the last set cookie always wins except in the case that you try to overwrite it with a referral link to your own address in metamask. The HEX “User Chosen Software Assister” behavior might change regarding the referral links. It could be disabled, or prevent your metamask address from being in a cookie even if it wasn’t overwriting another. Referrals could even go away entirely or be changed. It will be great to see more software built for users to help them run the software of their choice the way they want to run it.
Cryptocurrencies are extremely volatile. Bitcoin went from a penny to $32, then it crashed 94% to $2. Then it went from $2 to $270 then crashed 81%. Then it went from $51 to $1200 then crashed 86%. Then it went from $164 to $20,000, then crashed 84%. Then it went from $3150 to $14,000 and crashed 72%. And that’s the most liquid, oldest cryptocurrency in the world. Nearly every crypto currency drops 85% to 95% at some point. Some get back up and make new all time highs.
Legal Disclaimer
1. Risks related to the use of HEX “User Chosen Software Assister”HEX will not be responsible for any losses, damages or claims arising from events falling within the scope of the following five categories:
– Mistakes made by the user of any cryptocurrency-related software or service, e.g., forgotten passwords, payments sent to wrong coin addresses, and accidental deletion of HEX “User Chosen Software Assister”s.
– Software problems of the HEX “User Chosen Software Assister” and/or any cryptocurrency-related software or service, e.g., corrupted HEX “User Chosen Software Assister” file, incorrectly constructed transactions, unsafe cryptographic libraries, malware affecting the HEX “User Chosen Software Assister” and/or any cryptocurrency-related software or service.
– Technical failures in the hardware of the user of any cryptocurrency-related software or service, e.g., data loss due to a faulty or damaged storage device.
– Security problems experienced by the user of any cryptocurrency-related software or service, e.g., unauthorized access to users’ HEX “User Chosen Software Assister”s and/or accounts.
– Actions or inactions of third parties and/or events experienced by third parties, e.g., bankruptcy of service providers, information security attacks on service providers, and fraud conducted by third parties.
2. Trading and Investment risks
There is considerable exposure to risk in any crypto-currency exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing economic conditions that may substantially affect the price or liquidity of a currency. Investments in crypto-currency exchange speculation may also be susceptible to sharp rises and falls as the relevant market values fluctuate. It is for this reason that when speculating in such markets it is advisable to use only risk capital.
3. Electronic Trading Risks
Before you engage in transactions using an electronic system, you should carefully review the rules and regulations of the exchanges offering the system and/or listing the instruments you intend to trade. Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. You should understand these and additional risks before trading.
4. Compliance with tax obligations
The users of the HEX “User Chosen Software Assister” are solely responsible to determinate what, if any, taxes apply to their crypto-currency transactions. The owners of, or contributors to, the HEX “User Chosen Software Assister” are NOT responsible for determining the taxes that apply to crypto-currency transactions.
5. No warranties
The HEX “User Chosen Software Assister” is provided on an “as is” basis without any warranties of any kind regarding the HEX “User Chosen Software Assister” and/or any content, data, materials and/or services provided on the HEX “User Chosen Software Assister”
6. Limitation of liability
Unless otherwise required by law, in no event shall the owners of, or contributors to, the HEX “User Chosen Software Assister” be liable for any damages of any kind, including, but not limited to, loss of use, loss of profits, or loss of data arising out of or in any way connected with the use of the HEX “User Chosen Software Assister” In no way are the owners of, or contributors to, the HEX “User Chosen Software Assister” responsible for the actions, decisions, or other behavior taken or not taken by you in reliance upon the HEX “User Chosen Software Assister”
7. Arbitration
The user of the HEX “User Chosen Software Assister” agrees to arbitrate any dispute arising from or in connection with the HEX “User Chosen Software Assister” or this disclaimer, except for disputes related to copyrights, logos, trademarks, trade names, trade secrets or patents.
8. Last amendment
This disclaimer was amended for the last time on December 2nd, 2019.
