Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 94

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 94
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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
conditions have impacted the cryptoeconomy, although the extent of which remains uncertain and dependent on a variety of factors, including
market adoption of crypto assets, global trends in the cryptoeconomy, central bank monetary policies, instability in the global banking
system and other events beyond our control. Geopolitical developments, such as trade wars and foreign exchange limitations can also increase
the severity and levels of unpredictability globally and increase the volatility of global financial and crypto asset markets. For example,
the capital and credit markets have experienced extreme volatility and disruptions, resulting in steep declines in the value of Bitcoin.
To the extent general economic conditions and the Bitcoin market materially deteriorate or the current decline continues for a prolonged
period, our ability to generate revenue and to attract and retain customers could suffer and our business, operating results and financial
condition