> For the complete documentation index, see [llms.txt](https://docs.unchainx.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.unchainx.io/product/x-drop/cautions.md).

# Cautions

## 1.   Eligibility and Exclusions

### 1.1 Excluded Jurisdictions and Persons

The following users are excluded from participation in X-DROP and from receiving rewards:

•   Citizens or residents of the United States, or entities organized under the laws of the United States

•   Citizens or residents of countries or regions subject to sanctions designated by the United Nations (UN), the United States, the European Union, or other relevant authorities

•   Users in countries or regions where the acquisition or holding of virtual assets is restricted under applicable laws and regulations

•   Persons listed on sanctions lists (including the SDN List) and their related parties

Users are responsible for confirming that they do not fall within any of the excluded categories above. If the team determines that a user is an excluded person, the team may refuse to distribute rewards or recover rewards that have already been distributed.

### 1.2 Other Excluded Persons

•   Employees and officers of the team, and their related parties

•   Persons involved in the planning, operation, or calculation process of this program

•   Persons who violate applicable laws and regulations or the Unchain X Terms of Use

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## 2. Prevention of Abusive Participation

### 2.1 Types of Abusive Participation

The following activities are considered abusive participation:

1\.  Using multiple wallets controlled by the same person to artificially increase participation metrics

2\.  Engaging in wash trading or creating circular liquidity solely for the purpose of influencing reward calculations

3\.  Using automated tools to generate participation metrics in a manner that exceeds normal usage patterns

4\.  Obtaining rewards by exploiting system vulnerabilities or errors

5\.  Any other activity that distorts reward calculations contrary to the purpose of the program

### 2.2 Actions and Objections

If abusive participation is confirmed or reasonably suspected based on objective evidence, the team may take the following actions:

•   Exclude the relevant participation metrics from calculation

•   Withhold or refuse reward distribution

•   Recover rewards that have already been distributed

•   Restrict future participation in X-DROP programs

If the team takes any of the above actions, it will notify the relevant user of the reason. The user may submit an objection within 14 days from the date of notification, and the team will review the objection and provide the result.

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## 3. Program Changes and Discontinuation

### 3.1 Grounds for Changes or Discontinuation

The team may modify or discontinue the X-DROP program if any of the following circumstances arise:

1\.  Applicable laws or regulations are enacted or amended, or a government or regulatory authority takes action or issues administrative guidance

2\.  The technical structure or operating method of the protocol changes

3\.  A security incident, system failure, or external attack occurs, or there is a risk of such an event

4\.  Abusive participation becomes widespread to the extent that achieving the purpose of the program becomes difficult

5\.  Any other unavoidable circumstance comparable to those described in Items 1 through 4 above

### 3.2 Procedures for Changes or Discontinuation

•   If the program is modified or discontinued, the team will provide advance notice through official channels.

•   Any change that is unfavorable to users will be announced at least 7 days before its effective date. However, where urgent action is required due to a circumstance described in Items 1 or 3 of Section 5.1, notice may be provided without delay after the action is taken.

•   Rewards that have been finalized and announced for a Wave that has already ended will not be subject to modification or discontinuation.

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## 4. Terms of Use and Important Notices

### 4.1 Legal Nature of Rewards

•   X-DROP is an incentive program operated at the team’s discretion to promote activity within the ecosystem.

•   Participants do not have the right to demand or claim the distribution of rewards based on this document or their participation in the program.

•   X-DROP is not an investment product, and reward tokens do not represent any equity interest in, dividend right against, redemption right against, or any comparable right to the revenue, profits, or assets of the protocol.

•   The team does not promise or guarantee any return to participants.

### 4.2 Risk Disclosure

Users participate based on their own judgment and responsibility after acknowledging the following risks:

•   The value of virtual assets may fluctuate, and the value of tokens received as rewards may decrease or become worthless.

•   Providing liquidity involves the risk of loss, including Impermanent Loss.

•   Smart contracts may contain technical defects or security vulnerabilities.

•   The program may be restricted or discontinued due to changes in the regulatory environment.

### 4.3 Taxes

•   Users are responsible for any taxes arising from the receipt or disposition of rewards.

•   Users must independently confirm their reporting and payment obligations under the laws and regulations applicable in their jurisdiction.

•   If withholding or similar obligations arise under applicable laws and regulations, the team may deduct the relevant amount before distribution.

### 4.4 Disclosure of Information

•   Information regarding X-DROP will be disclosed through official channels. Information circulated through channels other than official channels should not be relied upon.

•   The team maintains an internal policy prohibiting trading based on non-public information relating to the program.

### 4.5 Limitation of Liability

The team is not liable for losses incurred by users due to any of the following circumstances:

•   Failure, delay, congestion, or forks of blockchain networks

•   Failure by users to properly manage their wallets, loss of private keys, or entry of an incorrect wallet address

•   Failure or interruption of services provided by third parties

•   Force majeure events, including natural disasters

### 4.6 Nature of This Document

•   This document is provided for informational purposes regarding the program and does not constitute a solicitation of an offer, investment solicitation, or an offer to enter into a contract.

•   Future plans described in this document are not guaranteed to be implemented.

•   The contents of this document may be changed. Please refer to official channels for the latest information.
