Legal
Risk Disclosure
Draft — to be reviewed by a qualified lawyer before launch.
Last updated:
Read this before you buy, sell, launch or vote. It describes the main risks of using Bloxhive and holding game tokens. It is part of the Terms of Use.
You can lose everything
Game tokens are highly speculative. Their price is driven by supply, demand and sentiment, not by any underlying asset or income. It can move very fast and can fall to zero, permanently.
Only use money you can afford to lose entirely.
No revenue rights
A game token gives no right to revenue, dividends, profit share or Robux, and no ownership of the game, its code or its intellectual property. Even if a game becomes a hit on Roblox, holders receive nothing from it, and the token’s price may not follow the game’s success.
Price mechanics
- Before graduation, the price is set by a bonding curve: every buy pushes it up and every sell pushes it down. Early buyers can profit at the expense of later ones.
- Every buy and every sell pays a 1% fee, so a round trip costs you at least 2% before any price movement.
- Large trades suffer slippage. Bots can front-run or “sandwich” your transaction on Solana; set your slippage limit carefully.
- Creators can buy at launch and sell at any time. There is no vesting or lock-up, and a creator or any large holder selling can crash the price.
- Anyone can launch a token with any name or ticker, including copies of popular games. Always check the mint address.
Liquidity
Before graduation, the only liquidity is the bonding curve. When about 85 SOL has been raised, the curve graduates into a constant-product pool run by the same Program. That pool may be thin, and selling a large amount can move the price a lot.
There is no market maker and no promise of a listing anywhere else. If the Program is paused, you cannot trade through it until it resumes.
Smart contract risk
The Program has not been audited at the time of writing. A bug or an exploit could cause the loss or freezing of funds held by the Program, including curve reserves, pools, Build Vaults and unclaimed creator fees.
The Program is controlled by an admin key held by the operator. That key can change the fee (never above 2%), the fee split, the sprint limits and the build oracle key, and can pause the Program. Whether, and when, the Program’s upgrade authority will be revoked is [to confirm with counsel]. If an admin or upgrade key were compromised, an attacker could use those powers.
Build oracle risk
Build Vault money can only be spent by the build oracle, an off-chain service run by the operator. The Program caps each sprint and records its cost, git commit and published file hash, but it cannot verify that the work was done or that the cost is fair. You are trusting the operator.
If the oracle key were stolen, vaults could be drained within the on-chain limits. If the operator stopped running the oracle, or blocked a game’s builds, the money in that vault could stay unused indefinitely.
AI build risk
- AI agents can produce buggy, unfinished or low-quality games, or games that do not match the pitch or the votes.
- The cost of AI compute can exceed what a vault holds, so a game may stall at any stage.
- The AI providers we rely on can change their models, prices, availability or terms, which can slow down or stop builds.
- AI output can unintentionally resemble existing works, which can lead to takedowns of the game.
Roblox platform risk
Every game depends on Roblox, which is not affiliated with Bloxhive. Roblox can change its rules (including on crypto-related projects), its Open Cloud API or its publishing and monetization policies, moderate or remove a game, or suspend the account that publishes it, at any time and without notice.
A published game may attract no players. Roblox statistics on the Site come from public APIs and may be delayed or wrong.
Regulatory risk
Crypto-asset rules are changing quickly and differ from country to country.
- European Union. The Markets in Crypto-Assets Regulation (MiCA, Regulation (EU) 2023/1114) sets rules for offering crypto-assets to the public and for crypto-asset service providers, including white-paper and authorisation requirements. How it applies to game tokens, their creators and to the Site is not settled.
- United States. Regulators or courts could consider game tokens to be securities under US law. The legal position is uncertain and could lead to enforcement action.
- Elsewhere. Other countries may restrict or ban tokens like these, or the Site itself.
Any of this could force us to restrict access, stop features or shut down the Site, and could hurt the value of game tokens. You are responsible for your own taxes on any gains.
Network and wallet risk
- Solana can suffer outages or congestion. Failed transactions may still cost network fees.
- RPC providers and wallet apps can fail, be wrong or be compromised.
- If you lose your seed phrase or it is stolen, your tokens are gone. No one can recover them.
- Phishing sites and fake tokens are common. Check the address bar and the mint address before signing.
Operator and information risk
The operator may stop running the Site or the build oracle. Tokens would stay on Solana, but the games would stop being built.
Prices, market caps, build logs and statistics on the Site can be delayed or wrong. In demo mode, everything is simulated.
This list is not complete
Other risks exist, including ones nobody has thought of yet. Nothing here is investment advice. Read the Terms of Use, and get independent advice if you are unsure.