IMPORTANT NOTICE ON TAX AND LEGAL OBLIGATIONS

Disclosure Statement for DOT Bounty or Treasury Beneficiaries

Dear Beneficiary,

As a recipient of DOT tokens distributed by BOUNTY NAME, you are receiving these tokens as compensation for your contributions to Polkadot, whether through bounty work, services provided, or other activities. Please read this disclosure carefully, as it contains important information about your potential tax and legal obligations.

1. Reporting Obligations

The value of the DOT tokens you receive may be considered taxable income or subject to other financial reporting requirements in your jurisdiction. This includes, but is not limited to:

• Income Taxes: The value of the DOT tokens at the time of receipt may need to be reported as income.
• Capital Gains Taxes: If you later sell or dispose of the DOT tokens, you may also be required to report any gains or losses.
• Other Obligations: Some jurisdictions may impose additional requirements, such as reporting foreign assets or cryptocurrency holdings.

2. Value of Tokens

The taxable value of your DOT tokens is generally determined by their fair market value at the time of receipt. You are responsible for determining and documenting this value in your local currency based on the prevailing market price of DOT at the time of the transaction.

3. Your Responsibility

It is your sole responsibility to:

• Determine how the DOT tokens you receive are classified under the tax laws of your jurisdiction.
• Report the receipt, holding, or sale of DOT tokens in accordance with applicable tax laws.
• Pay any taxes, fees, or other charges that may be due as a result of receiving DOT tokens.

We recommend that you consult a qualified tax advisor or legal professional in your jurisdiction to ensure full compliance with local laws and regulations.

4. Disclaimer

Polkadot and its representatives do not provide tax, financial, or legal advice. This disclosure is for informational purposes only and should not be interpreted as legal or tax advice. Polkadot is not responsible for any tax liabilities, penalties, or other consequences arising from your receipt or use of DOT tokens.