Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 88

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 88
---
 the event of employee
or service provider misconduct or error, our business may be adversely impacted.

Employee or service provider
misconduct or error could subject us to legal liability, financial losses, and regulatory sanctions and could seriously harm our reputation
and negatively affect our business. Such misconduct could include engaging in improper or unauthorized transactions or activities, misappropriation
of customer funds, insider trading and misappropriation of information, failing to supervise other employees or service providers, improperly
using confidential information, as well as improper trading activity such as spoofing, layering, wash trading, manipulation and front-running.
Employee or service provider errors, including mistakes in executing, recording, or processing transactions for customers, could expose
us to the risk of material losses even if the errors are detected. Although we have implemented processes and procedures and provide trainings
to our employees and service providers to reduce the likelihood of misconduct and error, these efforts may not be successful. Moreover,
the risk of employee or service provider error or misconduct may be even greater for novel products and services and is compounded by
the fact that many of our employees and service providers are accustomed to working at tech companies which generally do not maintain
the same compliance customs and rules as financial services firms. This can lead to high risk of confusion among employees and service
providers with respect to compliance obligations, particularly including confidentiality, data access, trading, and conflicts. It is not
always possible to deter misconduct, and the precautions we take to prevent and detect this activity may not be effective in all cases.
If we were found to have not met our regulatory oversight and compliance and other obligations, we could be subject to regulatory sanctions,
financial penalties, restrictions on our activities for failure to properly identify, monitor and respond to potentially problematic activity
and seriously damage our reputation. Our employees, contractors, and agents could also commit errors that subject us to financial claims
for negligence, as well as regulatory actions, or result in financial liability. Further, allegations by regulatory or criminal authorities
of improper trading activities could affect our brand and reputation.

General Risk Factors

Adverse economic conditions
may adversely affect our business.

Our performance is subject to
general economic conditions, and their impact on the Bitcoin market and our customers. The United States and other key international economies
have experienced cyclical downturns from time to time in which economic activity declined resulting in lower consumption rates, restricted
credit, reduced profitability, weaknesses in financial markets, bankruptcies, and overall uncertainty with respect to the economy. Adverse
general economic