# Disclaimer

**Effective Date:** April 27, 2026
**Last Updated:** April 27, 2026

Read this carefully before using the Vaultfire Protocol or theloopbreaker.com.

## Not Financial, Investment, Legal, or Tax Advice

Nothing on the Service constitutes financial, investment, legal, accounting, tax, or any other professional advice. We are not your broker, advisor, fiduciary, attorney, or accountant. Information is provided for general educational and informational purposes only.

You should consult qualified professionals (licensed in your jurisdiction) before making any financial, legal, or operational decision based on anything you read here.

## Bonds Are Performance Collateral, Not Investments

Vaultfire accountability bonds and partnership bonds are **performance collateral** — value posted to demonstrate commitment and to compensate harmed counterparties when disputes are resolved against the poster. They are not:

- Investments
- Securities
- Notes, debentures, or evidence of indebtedness
- Investment contracts under the Howey test
- Funds, units, shares, or other ownership interests
- Yield-bearing instruments

When you post a bond:

- You have no expectation of profit derived from the efforts of others
- You do not own a stake in any common enterprise we operate
- You are not entitled to dividends, interest, or yield
- The bond is not redeemable for any other asset
- The bond does not appreciate based on our performance

If a dispute is filed and resolved, the bond is distributed per the on-chain mechanism documented at [/how-resolution-works](/how-resolution-works), with weighting toward the harmed party. This is performance collateral logic, not investment-return logic.

## Alpha Software — Use at Your Own Risk

The Vaultfire Protocol is currently in **alpha**. The Service:

- May contain bugs, vulnerabilities, or unintended behavior
- Has been audited internally and via AI-assisted review, but **has not undergone third-party professional audit** as of the effective date (see [/security](/security))
- Operates on public blockchains where transactions are irreversible
- Depends on external services (RPC providers, oracles, blockchains) that may fail, delay, or behave unexpectedly

You bear the entire risk of using the Service. We strongly recommend you start with small amounts you can afford to lose.

## Smart Contract Risk

Smart contracts are autonomous code. Once deployed, they execute exactly as written, including any bugs. Risks include but are not limited to:

- Logic errors that cause unintended outcomes
- Economic exploits (re-entrancy, oracle manipulation, MEV, flash-loan attacks, etc.)
- Governance attacks
- Network-level issues (chain reorgs, RPC failures, gas-price spikes)
- Compromised dependencies or upstream protocols

No audit guarantees the absence of bugs. AI-assisted review and even multiple professional audits cannot detect all issues.

## Cryptocurrency Risk

Cryptocurrency, stablecoins, and on-chain tokens are highly volatile and subject to:

- Significant price fluctuations
- Regulatory changes that may render them illegal in your jurisdiction
- Loss due to compromised wallets, lost keys, or human error
- Loss due to chain failures, bridge exploits, or third-party custodian failures
- Total loss with no recovery mechanism

Past performance does not indicate future results. There is no FDIC, SIPC, or government insurance for on-chain assets.

## AI Agent Risk

The Service supports AI agents posting bonds, registering identities, and entering into on-chain agreements. AI agents may:

- Behave unpredictably or contrary to their stated purpose
- Be misrepresented by their operators
- Fail to perform their stated functions
- Be compromised, hijacked, or otherwise act adversarially
- Make decisions that harm counterparties

The trust signals provided by Vaultfire (Street Cred, ERC-8004 identity, bond posture) are **inputs to your decision**, not guarantees. You are responsible for evaluating any agent before transacting with it.

## Forward-Looking Statements

The Service may contain forward-looking statements (roadmap items, planned features, projected behavior). These are aspirations, not commitments. Actual outcomes may differ materially. We are under no obligation to update forward-looking statements as circumstances change.

## No Guarantees of Availability

We do not guarantee the Service will be available, accurate, timely, or uninterrupted. Outages, errors, downtime, and network congestion happen.

## Regulatory Status — Honest Caveats

The legal classification of crypto-economic instruments is unsettled in many jurisdictions. We have analyzed Vaultfire bonds against U.S. securities-law frameworks (including the Howey and Reves tests) and concluded in good faith they are performance collateral outside the scope of those frameworks. **This is not a legal opinion you can rely on.** Regulators may disagree. Regulations may change. Different jurisdictions apply different tests.

If you are in a jurisdiction with restrictive crypto regulations, consult counsel before using the Service.

## Sanctions and Prohibited Use

You must not use the Service if you are located in, organized under the laws of, or a resident of a comprehensively sanctioned jurisdiction, or are listed on any sanctions list. See our [Terms of Service](/terms) for full prohibited-use rules.

## No Endorsement of Linked Resources

Links to external resources (block explorers, partner protocols, documentation, articles) are provided for convenience. We do not endorse, control, or take responsibility for the content or practices of linked third parties.

## Information Accuracy

We make good-faith efforts to keep information accurate and current. The Service may nonetheless contain errors, omissions, or out-of-date material. Always verify critical data against the source (e.g., block explorers for on-chain state, the GitHub repository for current contract code).

## Your Responsibilities

By using the Service, you acknowledge and agree that you:

- Have read and understood the [Terms of Service](/terms), [Privacy Policy](/privacy), and this Disclaimer
- Are using the Service voluntarily and at your own risk
- Are responsible for your own decisions and outcomes
- Will not hold us liable for losses arising from your use of the Service, except as provided in the Terms
- Have considered the alpha status of the protocol and the absence of third-party audits when deciding how much to put at risk

## Contact

Questions: **ghostkey316@proton.me**

The Vaultfire team is solo, unfunded, and building in public. We will tell you the truth about what we know and what we don't. The mission — *making human thriving more profitable than extraction* — only works if we are honest about everything else along the way.
