Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 238

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 238
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 maintain
crime, specie, and cyber insurance is subject to the insurance carriers’ ongoing underwriting criteria and our inability to obtain
and maintain appropriate insurance coverage could cause a substantial business disruption, adverse reputational impact, inability to compete
with our competitors, and regulatory scrutiny.

24

Any significant disruption in our products and services, in our
information technology systems, or in blockchain networks related to our business, could result in a loss of customers or funds and adversely
impact our brand and reputation and our business, operating results, and financial condition.

Our reputation and ability to attract and retain
customers and grow our business depends on our ability to operate our service at high levels of reliability, scalability, and performance,
including the ability to process and monitor, on a daily basis, a large number of transactions that occur at high volume and frequencies
across multiple systems. Our platform, the ability of our customers to trade, and our ability to operate at a high level, are dependent
on our ability to access the blockchain networks underlying Bitcoin, for which access is dependent on our systems’ ability to access
the internet. Further, the successful and continued operations of such blockchain networks will depend on a network of computers, miners,
and validators, and their continued operations, all of which may be impacted by service interruptions.

Our systems, the systems of our third-party service
providers and partners, and certain blockchain networks have experienced from time to time, and may experience in the future service interruptions
or degradation because of hardware and software defects or malfunctions, computer viruses or other malware, distributed denial-of-service
and other cyberattacks, disruptions in telecommunications services, insider threats, break-ins, sabotage, human error, vandalism, earthquakes,
hurricanes, floods, fires, and other natural disasters, power losses, fraud, military or political conflicts, terrorist attacks, or other
events. In addition, extraordinary volumes of usage could cause our computer systems to operate at an unacceptably slow speed or even
fail. Some of our systems or the systems of our third-party service providers and partners are not fully redundant, and our or their disaster
recovery planning may not be sufficient for all possible outcomes or events.

If any of our systems, or those of our third-party
service providers, are disrupted for any reason, our products and services may be interrupted or fail, resulting in unanticipated disruptions,
slower response times and delays in our customers’ trade execution and processing, failed settlement of trades, incomplete or inaccurate
accounting, recording or