In the implementation of the underlying project, including the acquisition of the underlying carbon credits, the token issuer may be exposed to risk factors or unforeseen events, such as natural disasters, which may adversely affect the quantity of underlying carbon credits of the underlying project. In addition, the underlying project may be revoked, terminated, or otherwise disrupted, resulting in the token issuer being unable to continue the operation of the underlying project. The token issuer shall report any event that causes or may cause the cancellation of the token project, or the discontinuation of the project, business, or business plan related to the token, together with the reasons therefor, to the Securities and Exchange Commission (SEC) within three (3) days from the date on which the issuer knew or should have known of such event. Following an assessment of the impact on the underlying project, the token issuer shall compile the list of eligible token holders entitled to receive payment of accumulated compound return and initial investment. The issuer shall provide advance notice of the record date for the payment of accumulated compound return and initial investment to all token holders at least six (6) business days in advance via email and through an announcement on the token issuer’s website.
In this regard, eligible token holders shall be entitled to receive initial investment together with accumulated compound return at a rate of 3.00% per annum. Such return shall be calculated on a daily basis from the project commencement date until the record date for the payment of accumulated compound return and initial investment.
