12.5 Risks: Staking, Compute, Governance, and Market Volatility

Participation in Avao involves inherent risks, including but not limited to:

● Vault risk: Locked tokens in vaults are illiquid for the duration of the commitment period. Users must plan accordingly.

● Compute risk: Contributing hardware to the compute marketplace may expose users to wear, downtime, or misconfiguration.

● Governance risk: Poorly considered proposals or low voter turnout may lead to suboptimal outcomes.

● Market volatility: AOV token prices may fluctuate significantly due to market dynamics, external sentiment, or macroeconomic factors.

Avao does not shield users from these risks. Instead, it provides the tools, transparency, and governance structures to navigate them responsibly.