In connection with the private RDAO sale, before beginning an initial transaction for, on behalf
of, or with such participant, RealtyDAO Cooperative must disclose the material risks associated
with its products, services, and activities and RDAO generally, including at a minimum, the
following:
RDAO is not legal tender, is not backed by the government, and accounts and value
balances are not subject to Federal Deposit Insurance Corporation;
legislative and regulatory changes or actions at the state, federal, or international level
may adversely affect the use, transfer, exchange, and value of RDAO;
transactions in RDAO may be irreversible, and, accordingly, losses due to fraudulent or
accidental transactions may not be recoverable;
some RDAO transactions will be deemed to be made when recorded on a public ledger,
which is not necessarily the date or time that the participant initiates the transaction;
the value of RDAO may be derived from the continued willingness of market participants
to exchange Fiat Currency for RDAO, which may result in the potential for permanent
and total loss of value of a particular RDAO should the market for that RDAO disappear;
there is no assurance that a person who accepts a RDAO as payment today will continue
to do so in the future;
the volatility and unpredictability of the exchange rate of RDAO relative to Fiat Currency may result in significant loss over a short period of time;
the nature of RDAO may lead to an increased risk of fraud or cyber-attack;
the nature of RDAO means that any technological difficulties experienced by the Member may prevent the access or use of a participant’s RDAO; and
Disclosure of general terms and conditions
In connection with the private RDAO sale, before beginning an initial transaction for, on behalf of, or with such participant, RealtyDAO Cooperative must disclose the material risks associated with its products, services, and activities and RDAO generally, including at a minimum, the following:
the participant’s liability for unauthorized RDAO transactions;
under what circumstances the Members or RealtyDAO Board will, absent a court or government order, disclose information concerning the participant’s account to third parties;
the participant’s right to receive periodic account statements and valuations from the RealtyDAO Cooperative;
the participant’s right to receive a receipt, trade ticket, or other evidence of a transaction;
the participant’s right to prior notice of a change in the RealtyDAO Cooperative rules or policies; and
such other disclosures as are customarily given in connection with the sale of assets.
Disclosures of the terms of transactions
In connection with the private RDAO sale, before beginning an initial transaction for, on behalf of, or with such participant, RealtyDAO Cooperative must disclose the material risks associated with its products, services, and activities and RDAO generally, including at a minimum, the following:
the amount of the transaction;
any fees, expenses, and charges borne by the participant, including applicable exchange rates;
the type and nature of the RDAO transaction;
a warning that once executed the transaction may not be undone, if applicable; and
other disclosures that are customarily given in connection with a transaction of this nature.
Acknowledgement of disclosures
The RealtyDAO Cooperative must ensure that all disclosures required in this Section are acknowledged as received by participants.
Receipts
Upon completion of any transaction, the RealtyDAO Cooperative shall provide to a participant a receipt containing the following information:
the name and contact information of the RealtyDAO Cooperative RDAO sale contact, including a telephone number established by the RealtyDAO Cooperative to answer questions and register complaints;
the type, value, date, and precise time of the transaction;
the fee charged;
the exchange rate, if applicable;
a statement of the liability of the Member for non-delivery or delayed delivery;
a statement of the refund policy of the Member; and
any additional information that may be required.
Prevention of fraud
Members are prohibited from engaging in fraudulent activity. Additionally, each Member must take reasonable steps to detect and prevent fraud, including by establishing and maintaining a written anti-fraud policy. The anti-fraud policy must, at a minimum, include:
the identification and assessment of fraud-related risk areas;
procedures and controls to protect against identified risks;
allocation of responsibility for monitoring risks; and
procedures for the periodic evaluation and revision of the anti-fraud procedures, controls, and monitoring mechanisms.