Risk disclosure statement
Last updated: Jun 11, 2025
Johi ("johi," "we," "us," or "our") operates a mobile payments application and creator community platform that combines traditional financial services with blockchain technology and decentralized finance (DeFi) protocols. Our current services include the Johi Creatives Club subscription service, Johi Circle high-yield savings accounts, cross-border payments, creator funding mechanisms, and comprehensive payments tools designed for the creator economy.
Our platform bridges traditional banking with decentralized finance while supporting the global creator economy through innovative funding and networking solutions. We provide users with access to sophisticated financial tools while maintaining user-friendly interfaces that hide technical complexity.
Before using johi services, whether subscribing to the Creatives Club, utilizing our payments features, or accessing Johi Circle savings accounts, you should carefully read the following information to fully understand our services and associated risks. Our services are intended only for informed users above the applicable legal age (18+) who can accept potential benefits and related risks. Our services are provided on an "as is" basis, without warranties. Further important disclaimers and legal liabilities are detailed in our Terms of Service.
Blockchain and DeFi Technology Risks
Blockchain Network Dependencies
Johi's payments services utilize blockchain technology and smart contracts for transaction processing and yield generation. These technologies carry inherent risks including:
Network Congestion: High network usage can delay transactions and increase processing costs.
Smart Contract Vulnerabilities: Bugs or exploits in smart contracts could result in loss of funds.
Protocol Changes: Blockchain networks may implement changes affecting service functionality.
Technical Failures: Network downtime or technical issues may prevent access to services.
DeFi Protocol Integration Risks
Our Johi Circle savings accounts depend on third-party DeFi protocols to generate yields. These protocols involve significant risks:
Smart Contract Risk: Code vulnerabilities in DeFi protocols could result in total loss of deposited funds.
Liquidity Risk: Market conditions may prevent withdrawal of funds during periods of high demand.
Protocol Risk: DeFi platforms may cease operations, change terms, or experience security breaches.
Yield Volatility: Returns from DeFi protocols fluctuate and may become negative during market stress.
The yields offered through Johi Circle (5-12% annually) are estimates based on current market conditions and are not guaranteed. Past performance does not predict future results.
Stablecoin and Cryptocurrency Risks
Our platform uses stablecoins (primarily USDT) for stability and DeFi access. Despite being designed for stability, these assets carry risks:
Depegging Events: Stablecoins may lose their intended value relative to fiat currencies during market stress.
Regulatory Challenges: Government actions could restrict stablecoin availability or legality.
Issuer Risk: Problems with stablecoin issuers could affect asset value and availability.
Liquidity Constraints: Extreme market conditions may prevent conversion between cryptocurrencies and fiat money.
Financial Service Risks
Banking Service Limitations
While johi provides banking-like services, we are not a traditional bank:
Regulatory Status: Our services may not be covered by traditional banking regulations or deposit insurance.
Service Availability: Banking features depend on third-party infrastructure and blockchain networks.
Transaction Limitations: Cross-border payments and other services may have geographic or regulatory restrictions.
Account Access: Technical issues or security concerns may temporarily limit account access.
Yield and Investment Risks
Johi Circle and other high-yield features involve investment risks:
Principal Risk: Deposited funds may decrease in value or be lost entirely.
Market Risk: Economic conditions affecting cryptocurrency and DeFi markets impact returns.
Concentration Risk: Heavy reliance on specific DeFi protocols increases exposure to protocol-specific risks.
Timing Risk: Market conditions at time of deposit or withdrawal significantly affect outcomes.
Users should only deposit funds they can afford to lose entirely and should not rely on Johi services as their primary banking relationship.
Cross-Border Payment Risks
International payment services carry additional risks:
Regulatory Compliance: Changing regulations may restrict payment destinations or methods.
Exchange Rate Risk: Currency fluctuations may affect payment values.
Processing Delays: International payments may experience delays due to compliance requirements.
Geographic Restrictions: Services may not be available in all countries or for all currencies.
Regulatory and Compliance Risks
Evolving Regulatory Environment
The regulatory framework for DeFi, cryptocurrency, and blockchain-based financial services continues to evolve:
Service Restrictions: New regulations may prohibit or limit certain features we currently offer.
Compliance Costs: Regulatory requirements may increase operating costs and service fees.
Geographic Limitations: Regulatory changes may prevent service availability in certain jurisdictions.
Licensing Requirements: We may need to obtain licenses that could affect service delivery or availability.
Anti-Money Laundering and KYC Requirements
Financial services compliance creates ongoing obligations:
Identity Verification: Enhanced verification requirements may limit account access.
Transaction Monitoring: Unusual activity patterns may trigger account restrictions.
Reporting Obligations: We may be required to report certain transactions to authorities.
Privacy Implications: Compliance requirements may affect user privacy and data protection.
Tax Implications and Reporting
Using cryptocurrency and DeFi services creates complex tax obligations:
Taxable Events: Cryptocurrency transactions may trigger tax obligations in your jurisdiction.
Reporting Requirements: You may need to report cryptocurrency holdings or transactions.
Professional Advice: Complex tax implications may require consultation with tax professionals.
Jurisdictional Differences: Tax treatment varies significantly between countries and regions.
Operational and Security Risks
Third-Party Service Dependencies
Johi relies on multiple external service providers:
Payment Processors: Stripe and other processors handle subscription payments and card services.
Blockchain Infrastructure: TON blockchain and other networks process transactions.
DeFi Protocols: Third-party platforms provide yield generation services.
Cloud Services: Infrastructure providers host our platform and store data.
Interruptions or failures by these providers could significantly impact service availability and functionality.
Cybersecurity and Data Protection Risks
Digital financial services face ongoing security threats:
Data Breaches: Unauthorized access could expose personal and financial information.
Account Compromise: Cyberattacks may target user accounts and funds.
Platform Security: Technical vulnerabilities could affect service security and integrity.
Social Engineering: Phishing and other attacks may target Johi users.
Technology and Platform Risks
Our platform's complexity creates multiple points of potential failure:
Software Bugs: Code errors may affect service functionality or security.
Integration Issues: Problems between different service components may cause disruptions.
Scalability Limitations: High user demand may overwhelm system capacity.
Update Risks: Platform updates may introduce new bugs or compatibility issues.
User-Specific Risks
Account Security and Access
Users bear significant responsibility for account security:
Credential Management: Lost passwords or compromised accounts may result in permanent loss of access.
Two-Factor Authentication: Failure to secure authentication methods increases compromise risk.
Private Key Security: For blockchain features, lost private keys mean permanent loss of access to funds.
Device Security: Compromised devices may expose accounts to unauthorized access.
Technical Literacy Requirements
Effective use of johi services requires understanding of:
Cryptocurrency Concepts: Basic knowledge of digital assets and blockchain technology.
DeFi Principles: Understanding of decentralized finance risks and opportunities.
Security Practices: Ability to recognize and avoid common security threats.
Financial Concepts: Understanding of investment risks and financial planning principles.
Financial Decision Making
Johi services require users to make informed financial decisions:
Risk Assessment: Ability to evaluate personal risk tolerance and financial capacity.
Diversification: Understanding the importance of not concentrating all assets in one platform.
Emergency Planning: Maintaining access to funds through alternative means for emergencies.
Professional Consultation: Knowing when to seek advice from financial or legal professionals.
Creatives Club and Community Risks
Subscription Value and Expectations
The Johi Creatives Club involves specific risks related to community participation:
Content Quality: Creator selections and networking opportunities may not meet individual expectations.
Community Participation: Value depends on active engagement by community members.
Professional Outcomes: Networking connections do not guarantee business success or collaborations.
Market Changes: Creator economy trends may affect the relevance of community features.
Professional Networking Risks
Connecting with other creators through our platform involves:
Reputation Risk: Association with other community members may impact professional reputation.
Business Risk: Collaborations formed through our platform carry normal business relationship risks.
Privacy Considerations: Sharing professional information with community members involves privacy trade-offs.
Relationship Management: Professional relationships require ongoing management and appropriate boundaries.
Platform Evolution and Business Risks
Service Development and Changes
Johi continues to evolve our service offerings:
Feature Changes: Existing features may be modified, enhanced, or discontinued.
Pricing Changes: Subscription fees and service costs may increase over time.
Service Integration: New features may require changes to existing workflows or account setup.
User Migration: Platform updates may require users to take action to maintain service access.
Business Sustainability and Competition
Market conditions affect our ability to continue providing services:
Competitive Pressure: Other platforms may offer superior features or pricing.
Market Adoption: Success depends on continued user growth and engagement.
Revenue Sustainability: We must maintain sufficient revenue to support ongoing operations.
Technology Evolution: Rapid changes in blockchain and fintech may require significant platform adaptations.
Funding and Liquidity
Our operational capacity depends on:
User Adoption: Sufficient subscribers and platform users to support operations.
Investor Support: Continued access to capital for platform development and operations.
Market Conditions: Economic conditions affecting both traditional and cryptocurrency markets.
Regulatory Costs: Compliance requirements that may increase operational expenses.
Risk Mitigation Recommendations
Financial Risk Management
Users should implement prudent financial practices:
Diversification: Never invest more than you can afford to lose in any single platform or asset type.
Emergency Funds: Maintain traditional bank accounts and emergency savings outside of Johi.
Gradual Adoption: Start with small amounts to understand platform functionality and risks.
Regular Review: Periodically assess your financial situation and platform usage.
Security Best Practices
Protect your accounts through:
Strong Authentication: Use complex passwords and enable two-factor authentication.
Device Security: Keep devices updated and use reputable security software.
Information Protection: Never share account credentials or private keys.
Suspicious Activity: Report unusual account activity immediately to our support team.
Ongoing Education and Awareness
Stay informed about:
Platform Updates: Review communications about service changes and new features.
Market Conditions: Understand broader trends affecting cryptocurrency and DeFi markets.
Regulatory Changes: Stay aware of legal developments in your jurisdiction.
Security Threats: Learn about common cybersecurity risks and prevention methods.
Professional Advice and Support
When to Seek Professional Help
Consider consulting qualified professionals for:
Tax Planning: Understanding cryptocurrency and DeFi tax implications.
Financial Planning: Integrating Johi services into broader financial strategy.
Legal Questions: Regulatory compliance and legal implications of service use.
Investment Strategy: Portfolio management and risk assessment.
Contact and Support Resources
For questions about risks or our services:
Email: support@johi.xyz
Address: R. Nova da Trindade 1, 3 Direito, 1200-443 Lisboa, Portugal
Response Time: We aim to respond to risk-related inquiries within 48 hours
Important Disclaimer: This risk disclosure does not constitute financial, legal, or investment advice. The information provided is for educational purposes only. Users should conduct their own research and consult qualified professionals before making financial decisions involving our services.
Please carefully consider these risk factors when using johi services. By using our platform, you acknowledge that you have read, understood, and accept these risks. Risk factors may change as financial markets, regulations, and technology evolve. Regular review of our risk disclosures and terms of service is recommended.