Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 86

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 86
---
 source licenses contain
requirements that we make available source code for modifications or derivative works we create based upon the type of open source software
we use, or grant other licenses to our intellectual property. If we combine our proprietary software with open source software in a certain
manner, we could, under certain open source licenses, be required to release the source code of our proprietary software to the public,
be precluded from charging fees to users of our proprietary software, or be required to license our proprietary software for purposes
of making derivative works. Among other things, this would allow our competitors to create similar offerings with lower development effort
and time and ultimately could result in a loss of competitive advantage. While we try to avoid subjecting our proprietary software to
such open-source licenses, we cannot guarantee we will always be successful, and if we discover any potential open-source issues, we could
be required to expend substantial time and resources to re-engineer some or all of our software.

We have not recently conducted
an extensive audit of our use of open source software and, as a result, we cannot assure you that our processes for controlling our use
of open source software in our platform are, or will be, effective. If we are held to have breached or failed to fully comply with all
the terms and conditions of an open source software license, we could face litigation or other liability, or be required to seek costly
licenses from third parties to continue providing our offerings on terms that are not economically feasible, to re-engineer our platform,
to discontinue or delay the provision of our offerings if re-engineering could not be accomplished on a timely basis or to make generally
available, in source code form, our proprietary code, any of which could adversely affect our business, operating results, and financial
condition. Moreover, the terms of many open source licenses have not been interpreted by U.S. or foreign courts. As a result, there is
a risk that these licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to provide
or distribute our platform. From time to time, there have been claims challenging the ownership of open source software against companies
that incorporate open source software into their solutions. As a result, we could be subject to lawsuits by parties claiming ownership
of what we believe to be open source software. Any of the foregoing could have a material adverse effect on our business, financial condition
and results of operations.

Risks Related to Our Employees
and Other Service Providers