Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 24

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 24
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 we or our third-party service providers experience a security
breach or cyberattack and unauthorized parties obtain access to our bitcoin, or if our private keys are lost or destroyed, or other similar
circumstances or events occur, we may lose some or all of our bitcoin and our financial condition and results of operations could be materially
adversely affected.”

In addition, the Bitcoin network relies on open-source
developers to maintain and improve the Bitcoin protocol. Accordingly, bitcoin may be subject to protocol design changes, governance disputes
such as “forked” protocols, competing protocols, and other open source-specific risks that do not affect conventional proprietary
software.

<div align='center'>8</div>

The laws and regulations applicable to bitcoin
and digital assets are evolving and subject to interpretation and change.

Governments around the world have reacted differently
to digital assets; certain governments have deemed them illegal, and others have allowed their use and trade without restriction, while
in some jurisdictions, such as the U.S., digital assets are subject to overlapping, uncertain and evolving regulatory requirements.

As digital assets have grown in both popularity
and market size, the U.S. Executive Branch, Congress and a number of U.S. federal and state agencies, including the Financial Crimes Enforcement
Network, the Commodity Futures Trading Commission (“CFTC”), the SEC, the Financial Industry Regulatory Authority, the Consumer
Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the
IRS and state financial regulators, have been examining the operations of digital asset networks, digital asset users and digital asset
exchanges, with particular focus on the extent to which digital assets can be used to violate state or federal laws, including to facilitate
the laundering of proceeds of illegal activities or the funding of criminal or terrorist enterprises, and the safety and soundness and
consumer-protective safeguards of exchanges or other service-providers that hold, transfer, trade or exchange digital assets for users.
Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. In
addition, federal and state agencies, and other countries have issued rules or guidance regarding the treatment of digital asset transactions
and requirements for businesses engaged in activities related to digital assets.

Depending on the regulatory characterization of
bitcoin, the markets for bitcoin in general, and our activities in particular, our business and our bitcoin strategy may be subject to
regulation by one or more regulators in the United States and globally. Ongoing