Risk Disclosure

1Read this first

MLX is a new, experimental network. You could lose everything you put in. Only use money you can afford to lose entirely, and don’t borrow to buy dedicated seats or MLX.

This page explains the main risks in plain language. It isn’t a complete list; new risks can appear that we haven’t foreseen. It forms part of the Terms of Use.

2MLX may be worth little or nothing

• MLX has no value except what the protocol’s curve pays for it today and what people may be willing to pay for it in future. Neither is guaranteed.
• Nobody, including us, promises a price, a return, a buy-back or a listing on any exchange.
• Figures on the site, such as the thesis, network value scenarios and AAPL chart, are illustrations with their sources shown. They are not forecasts of the MLX price.
• If the network fails to attract devices or customers, or stops, MLX could become worthless.

3How the spot price works, and why it falls

The only market for MLX today is the protocol’s bonding curve. The price is set by a formula tied to the network’s position (how many dollars of dedicated seats and spot buys have entered it):

• Every seat purchase and spot buy moves the position forward and raises the price. Every sale moves it back and lowers the price for everyone.
• If many holders sell, the price falls along the curve, and it can fall a long way. Early buyers who sell first get a better price than those who sell later.
• Spot buys pay 25% over the curve price and sales receive 10% under it. Buying and immediately selling at the same position returns about 72% of what you paid.
• We can change the premium and discount, set limits or pause the spot market. Those settings change what you pay and receive.

Dedicated seats move the position along the same curve, but since 20 October 2026 they pay no MLX up front: a seat only raises how fast a Mac of its class mines, and mined MLX comes from the compute pool, whose hourly release shrinks over time and is shared by every working Mac.

4You may not be able to sell

• MLX trades only on the protocol’s spot market. There is no exchange listing and none is promised.
• Sales are paid from the treasury’s USDC on MLX. If the treasury runs short, sales are refused or limited until more liquidity is added, which we decide.
• The spot market may be paused, for example during an incident or a change to the protocol.
• Selling gives you USDC on MLX, which you then have to withdraw (see operator risk).

5Mined MLX is locked

• A dedicated seat pays nothing up front (since 20 October 2026). Seat rewards paid before then stay locked until their own dates, and can’t be sent or sold until they unlock.
• MLX your Mac earns for compute work is locked: each day’s reward unlocks 30 days after the day it was earned on a free seat, or after the lock-in of your wallet’s shortest-locked dedicated seat (3 to 20 days). A confirmed fault can slash locked MLX, mined or not. USDC paid to you for jobs is not locked.
• Lock-in periods are protocol settings. They were shortened on 19 October 2026 (from 12 to 24 months for seat rewards and 18 months for mined MLX), and they may change again, for example lengthened for new locks if selling pressure calls for it. Any change is announced and recorded on the public ledger.
• Compute rewards are not guaranteed. They depend on your Mac being available and its work being verified, on how much the compute pool releases and how many others are earning, and on rules that may change. A Mac whose wallet holds no dedicated seat runs on a free seat, gets AI jobs only at a throttled, sporadic pace and earns very little. Sending paid AI jobs to Macs with dedicated seats first is planned, not live, and may never bring your Mac work.
• The price of MLX can fall a long way while your mined MLX is locked, and you can’t sell to limit the loss.
• A seat’s “mines up to” figure is a cap. The compute pool releases a fixed, shrinking share each hour and every working Mac shares it, so a seat can mine far less than its cap, and nothing if its Mac doesn’t work.

6You rely on the operator

For now, MLX is centralised. You are trusting the MLX Network operator, MLX Foundation, in several ways:

• One sequencer. We run the only sequencer. We order transactions, seal blocks, and can pause the ledger, refuse transactions or, after a bug or attack, correct the ledger. If our systems fail, MLX stops until we fix them.
• Reserves. USDC on MLX is a claim on reserves we hold, not USDC issued by Circle. If we lose the reserves (through a hack, an error, a failed bank or custodian, or insolvency) or can’t access them, you may not be paid in full. It isn’t a bank deposit and no insurance or compensation scheme covers it. [Reserve custody and reporting arrangements]
• Manual withdrawals. Withdrawals are reviewed and paid by hand on Solana. They can be slow, can be paused, and depend on our staff and our Solana wallet being available. A withdrawal may be delayed or refused for compliance checks.
• System accounts. The treasury, rewards pool and community allocation are ledger accounts we control. We decide when to add sell liquidity, and we set market and commission settings.
• A small team. MLX depends on a small number of people. Losing key people, funding or partners could delay or end the project.

7Software bugs and security

• MLX is new software. Bugs in the ledger, the curve, checkout or the wallet could cause wrong balances, failed payments or lost funds.
• The MLX ledger is our own system, not a smart contract on a public blockchain. [Independent security audit status]
• Attackers could target our servers, our database, our payment wallets or the services we depend on (hosting, database, blockchain data providers).
• Your wallet is only as safe as your devices and your passkey provider account. Malware, phishing sites and fake support staff can steal your recovery phrase. We will never ask for it, and we can’t recover or reverse anything signed with your wallet.
• If you lose both your passkey and your recovery phrase, your wallet is gone for good.

8Paying in crypto

• Blockchain payments can’t be reversed. Sending the wrong coin, the wrong amount, on the wrong network or after the quote expires can mean the payment isn’t matched, and may be lost.
• Exchanges often deduct a fee from withdrawals, so the amount that arrives may be short of the quote.
• Slow or congested blockchains, or outages at the providers we use to read them, can delay your seat or deposit.
• Coins other than stablecoins are priced at the live rate when you get a quote, and stablecoins can lose their peg.

9Laws and regulators

• Regulators in your country or ours could decide that dedicated seats, the MLX token, the spot market or USDC on MLX need a licence, registration or a prospectus, or are not allowed at all.
• That could force us to change or close features, block users from some places, require identity checks, delay withdrawals, or stop MLX altogether.
• It may already be illegal for you to use MLX where you live. Checking that is your responsibility.
• Tax rules for dedicated seats, locked rewards and token trades are unclear and differ by country. You may owe tax even on rewards you can’t yet sell.

10MLX is not Apple

• MLX Network is independent. It is not affiliated with, endorsed by or sponsored by Apple Inc.
• Apple controls macOS, iOS, iPadOS, its hardware and its App Store. Apple could change any of them, or its policies, in ways that limit or stop MLX apps from running compute on your device, or keep them out of the App Store.
• “MLX” is also the name of Apple’s open-source machine learning framework. A dispute over the name could force a rebrand.

11Mainnet is still being built

• MLX has been on mainnet since 18 October 2026. Audits, slashing, paid client jobs, independent routers and wallet features in MLX.app for iPhone and iPad are still to come; any of them can be late, different or never ship.
• The design described on the site and in the whitepaper may change, including device classes, rewards and fees.
• A dedicated seat earns its full compute rate only while it runs on a linked, working Mac of its class (a Latest seat needs Apple’s newest chip in its class). On a smaller Mac it earns at that Mac’s class, and with no Mac linked it earns no compute rewards.
• Which chips count as the newest changes when Apple releases new ones, so a Latest seat may need a newer Mac later to keep its extra rate.

12Demand for compute is uncertain

• No customers are guaranteed. A network of consumer Apple devices has to compete with data centres, cloud providers and other compute networks on price, speed and reliability.
• Your Mac may get little or no work, and compute earnings are not promised.
• Running workloads uses electricity, data and battery, produces heat and can wear your device. Those costs are yours.

13What other people tell you

Distributors and other community members are independent. They are paid commissions on what they sell, and they may say things that are wrong or promise returns they have no right to promise. Rely only on the official MLX documents.