Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 55

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 55
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 of the prices of assets, including significant depreciation
in value. Any of these events could have an adverse impact on our business and our customers’ perception of us, including decreased
use of our platform and loss of customer demand for our products and services.

Transferring Bitcoin
on the Bitcoin blockchain involves risks, which could result in loss of customer assets or our proprietary assets, customer disputes and
other liabilities, which could adversely impact our business.

In order to transfer Bitcoin
on the Bitcoin blockchain, a person must have a private and public key pair associated with a network address, commonly referred to as
a “wallet.” Each wallet is associated with a unique “public key” and “private key” pair, each of which
is a large number. To send Bitcoin on the Bitcoin blockchain, a user must sign a transaction that is created using the private key of
the wallet from where the user is transferring Bitcoin, a hash of the recipient wallet’s public key, the amount of Bitcoin to be
sent, and the transaction fee. The transaction must be signed using the user’s private key through a cryptographic process, which
creates a digital signature to prove ownership of the Bitcoin. Once signed, the transaction is broadcasted to the Bitcoin network to be
included in a new block by miners. If we wish to purchase Bitcoin, the seller would need to send a transaction to our designated wallet
in this manner. A number of errors can occur in the process of transmitting Bitcoin, such as typos, mistakes, or the failure to include
the information required by the blockchain network, which could result in losses of our proprietary Bitcoin or, where our customers choose
to transfer and use Bitcoin on its underlying blockchain network, the Bitcoin held by us on behalf of our customers. For instance, a customer
may incorrectly enter our crypto custody partner’s wallet’s address or the desired recipient’s public key when depositing
and withdrawing Bitcoin, respectively. Alternatively, a customer may send Bitcoin to a wallet address that the customer does not own,
control or hold the private keys to. If any of the foregoing errors occur, all of the Bitcoin sent by the customer will be permanently
and irretrievably lost with no means of recovery. We have encountered and expect to continue to encounter similar incidents with our customers,
and although we have not experienced such incidents with respect to Bitcoin that we hold on a proprietary basis it is possible that they
could occur in the future. Such incidents could result in customer disputes, damage to our brand and reputation, legal claims