Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 169

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 169
---
 its participants, even if we are not directly responsible. Despite our efforts to monitor governance, maintain robust security practices, and adapt to network changes, our validator operations remain subject to risks inherent in third -partyblockchain protocols. Any loss of staked ENA Token, exclusion from the validator set, or adverse governance or operational developments within the proposed Converge network or other supported networks could materially and adversely affect our business, financial condition, and results of operations. Our validator business will be built on third-party technology. Any failure of that technology or related services could have a material adverse effect on our business, financial condition, and results of operations. Our validator business is built on licensed technology and intellectual property that are critical to our blockchain infrastructure operations and strategic initiatives. We have a perpetual non -exclusiveroyalty -freesoftware license with an entity owned by our Chief Technology Officer to use its proprietary Node -as - a-Service(“ NaaS”) platform software. We intend to use the NaaS platform software as the foundation to build our validator business, which will be hosted and operated on StablecoinX’s own infrastructure to ensure StablecoinX maintains control over the development and scalability of the validator. We will also rely on a managed services agreement with another entity owned by our Chief Technology Officer for IT support and infrastructure management. Because our validator operations depend heavily on third -partytechnology, we face risks that are outside of our control. Any failure in the systems upon which our validator relies, whether stemming from software defects, hardware breakdowns, cybersecurity incidents, or failures by our third -partyservice providers, could lead to downtime, service interruptions, or loss of functionality. These events could impair our ability to validate transactions and generate rewards and may subject us to “slashing” penalties if the network determines we failed to perform our required validator duties. Since our validator is collateralized with ENA Tokens staked from our treasury, operational failures could result not only in lost revenue but also the permanent loss of staked ENA Token (whether or not it was owned by us or delegated to us by third -parties), materially reducing the value of our digital asset holdings. Since our ability to be selected to validate blocks and to attract others use us to operate their validator nodes largely depends on our ability to provide a reliable service, even temporary disruptions could harm our reputation for reliability, impair customer trust, and limit our ability to attract additional validation opportunities. A severe failure of our validation infrastructure or third -partyservices upon which we rely could