13.4 Risk and Consumer Protection

ARX includes built-in consumer protection mechanisms to reduce financial and operational risks.

Key measures

• Transparent Disclosure: All fees, reward structures, and staking terms are fully disclosed in the CAWP and within the app interface.

• Non-Custodial Model: Users maintain direct control of their assets and private keys at all times. ARX never takes custody of user funds.

• Token Utility Limitation: ARX tokens cannot represent profit rights or ownership claims over the issuer or DAO.

• Reward Disclaimer: Rewards are variable and dependent on validator performance, not guaranteed or fixed yields.

• Risk Education: Users are informed about volatility, smart contract risks, and technological limitations through built-in onboarding guides and risk statements.

These measures ensure compliance with consumer protection principles under both Swiss FINMA and EU MiCA guidance.