Mining Risk Disclosure • LuqEE

Probability Statement and Regulatory Notice

This Probability Statement, Risk Disclosure, and Regulatory Notice (“Disclosure”) is provided byLuqEE (“LuqEE,” “we,” “us,” or “our”) for the purpose of transparency and regulatory clarity. This Disclosure describes the technical, probabilistic, operational, legal, and economic risks associated with participation in blockchain mining–related activities made accessible through the LuqEE platform.

This Disclosure does not constitute an offer, solicitation, recommendation, financial product, investment opportunity, gambling activity, promotional sweepstakes, or prize competition. Participation in LuqEE is voluntary, non-investment based, and non-guaranteed.

1. Purpose of This Disclosure

The purpose of this Disclosure is to clearly communicate the nature of blockchain mining activities and the inherent uncertainty, risks, and limitations associated with such activities. This Disclosure is intended to assist users in making informed decisions and to clarify that participation does not create any expectation of economic return or reward.

2. Nature of Blockchain Mining (Technical Activity)

Blockchain mining is a technical process performed on proof-of-work networks whereby computational resources are used to attempt to solve cryptographic challenges defined by the blockchain protocol. A successful solution may result in the creation and validation of a new block on the network.

Key characteristics of blockchain mining include, but are not limited to:

Mining outcomes are probabilistic and randomized
Mining involves global, competitive participation
Network difficulty is externally determined and dynamically adjusted
Only one valid block is accepted by the network per interval
No proportional or guaranteed distribution exists unless explicitly defined by a third-party protocol or pool
Blockchain mining is a technical process and not a financial service

3. Explicit Statement on Probability and Uncertainty

Blockchain mining outcomes are governed exclusively by probability.

Each hash attempt is statistically independent
There is no concept of “progress,” “momentum,” or outcomes becoming “due”
Extended participation does not increase certainty of reward
Zero rewards are a valid and expected outcome
Mining probability does not converge to certainty regardless of duration or participation level

4. No Investment, Gambling, Sweepstakes, or Promotion

LuqEE expressly disclaims classification as, or operation of, any of the following:

An investment contract
A security, derivative, or financial instrument
A gambling, betting, or wagering platform
A sweepstakes, raffle, lottery, or promotional contest
A prize-linked savings product

Accordingly:

No purchase increases a participant’s odds relative to others
No prize pool is created, funded, or distributed by LuqEE
Outcomes are determined solely by external blockchain network protocols
LuqEE does not select winners or award prizes
LuqEE does not influence or control probability outcomes

All mining results occur independently of LuqEE and are governed exclusively by decentralized network consensus rules.

5. Informational Nature of Displayed Metrics

Any metrics, values, or indicators displayed on the LuqEE platform—including but not limited to hashrate, duration, probability estimates, streaks, visual indicators, or simulations—are provided for informational and educational purposes only.

Non-binding
Subject to rapid change
Not predictive of outcomes
Not contractual or guaranteed

No displayed metric should be interpreted as implying expected, likely, or future results.

6. External Factors Beyond LuqEE’s Control

Mining outcomes and probabilities may be materially affected by factors beyond LuqEE’s control, including but not limited to:

Global network hashpower fluctuations
Institutional or large-scale mining deployments
Network difficulty adjustments
Hardware or efficiency advancements
Energy market conditions
Protocol updates, forks, or rule changes
Third-party pool policies or behavior

LuqEE does not control, manage, or influence these factors.

7. No Guaranteed Rewards or Economic Benefit

LuqEE provides access to participation in blockchain mining activities, not outcomes.

There is no guarantee of:

Rewards or block discovery
Profitability or return
Cost recovery
Fair value or economic benefit
Consistent probability
Continued or future availability of services

Users may receive no rewards whatsoever, including over extended periods of participation.

8. Non-Custodial and Direct-to-Wallet Structure

Where applicable:

Mining rewards are issued directly by the blockchain network
LuqEE does not custody, hold, or redistribute mining rewards
Failure to mine a valid block results in no reward
No partial or consolation payouts exist unless explicitly stated
LuqEE cannot reverse, supplement, replace, or guarantee blockchain outcomes

9. Operational and Technical Risks

Mining activities may be interrupted, delayed, or impaired due to circumstances including, but not limited to:

Hardware or infrastructure failures
Power disruptions
Network connectivity issues
Software bugs or defects
Third-party pool downtime
Scheduled or unscheduled maintenance
Force majeure events

LuqEE provides services on a best-effort basis and does not guarantee uninterrupted operation.

10. Regulatory and Legal Uncertainty

Blockchain mining and related activities are subject to evolving and uncertain regulatory frameworks.

Changes in applicable laws or regulations may:

Restrict or prohibit participation
Require modification of services
Limit platform availability
Require suspension or termination of services

LuqEE assumes no obligation to continue services in the event of adverse regulatory developments.

11. User Responsibility and Suitability

By participating in LuqEE, you acknowledge and agree that:

You understand blockchain mining is probabilistic and uncertain
You accept the possibility of zero rewards
You are not relying on LuqEE for financial, legal, or investment advice
You are participating for technical interest or entertainment purposes
You have independently assessed your risk tolerance
You will not commit funds you cannot afford to lose

12. Limitation of Liability

To the fullest extent permitted by applicable law:

LuqEE shall not be liable for losses, missed opportunities, or unrealized expectations
Participation is undertaken entirely at your own risk
No oral, visual, or implied statements shall supersede or modify this Disclosure

Appendix A: Probability Math and Expected Outcomes

This appendix is provided for educational purposes only.

A.1 Basic Probability Model

Let:

Hₘ = Miner hashrate (hashes per second)
Hₙ = Total network hashrate
P = Probability of finding a block per attempt

P = Hₘ / Hₙ

This represents a single-attempt probability, not a guarantee.

A.2 Probability Over Time

Let:

t = time in seconds
λ = expected block attempts

λ = P x t

Block discovery follows a Poisson process.

A.3 Probability of Zero Successes

P(0) = e^-λ

This means even over long durations, the probability of zero blocks remains non-zero.

A.4 Probability of At Least One Block

P(>=1) = 1 - e^-λ

This value never equals 1.

A.5 Common Misconception

“If I mine long enough, I will eventually win.”

False. Probability approaches but never reaches certainty.

A.6 Network Difficulty Volatility

All formulas assume static difficulty, which is unrealistic.

In reality:

Difficulty changes
Hashrate fluctuates
Probability is non-stationary

Therefore, projections degrade rapidly over time.

13. Final Acknowledgment

By accessing or using LuqEE, you confirm that you:

Understand mining is probabilistic
Accept that no reward is guaranteed
Acknowledge regulatory uncertainty
Participate at your own risk