14 Risk Management

Risk: Platform Performance & Scalability

Platform may experience performance issues as user base grows.

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  • Cloud infrastructure with automatic scaling

  • CDN for media distribution

  • Regular load testing

  • Phased rollout allowing infrastructure adjustment


Risk: Smart Contract Security

Vulnerabilities could enable exploits in Phase Two.

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  • Multiple professional security audits

  • Bug bounty program

  • Gradual rollout with limited exposure

  • Emergency pause functionality

  • Insurance coverage


Market Risks

Risk: Creator Adoption Rate Uncertainty

Creators may be slow to migrate despite superior economics.

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  • Ambassador program with 0% lifetime fees

  • Clear value proposition: 33-67% higher earnings

  • Multi-platform strategy

  • Agency partnerships for bulk migrations


Risk: Competition from Established Platforms

Competitors may respond with fee reductions or improved features.

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  • CATs provide unassailable advantage

  • Crypto infrastructure shields from banking vulnerability

  • First-mover advantage in category creation

  • Speed to market creates 12-24 month lead


Regulatory Risks

Risk: CAT Securities Classification

Regulatory authorities may classify CATs as securities.

chevron-rightMitigationhashtag
  • Engage securities lawyers for structural guidance

  • Consider international launch in crypto-friendly jurisdictions

  • Structure CATs for utility token classification

  • Budget compliance reserves


Operational Risks

Risk: Team Execution Capacity

Team may struggle with growth challenges.

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  • Strategic hiring using Phase One revenue

  • Outsource non-core functions

  • Automation of routine operations

  • Advisory board guidance