Brevis MiCAR White Paper

The offer and admission to trading of BREV involve significant risks. Prospective holders should carefully consider these risks before acquiring or using the token. The following list is not exhaustive and may not capture all risks that could arise.

Regulatory and legal risks
Crypto-assets are subject to evolving laws and regulations that may change materially over time. Future legal developments in the EU or in other jurisdictions may restrict, limit, or otherwise affect the holding, transfer, or use of BREV. Compliance requirements, licensing obligations, or new supervisory actions may be introduced.

Market and liquidity risks
The value of BREV may fluctuate significantly due to market dynamics, change in supply and demand, changes in demand for verifiable compute, broader economic conditions, or market sentiment. Secondary market liquidity is not guaranteed, and holders may be unable to buy or sell BREV at desired times or prices.

Technology and cybersecurity risks
Blockchain systems, smart contracts, cryptographic proofs, and distributed networks inherently carry risks relating to software bugs, vulnerabilities, cyberattacks, and operational failures. Exploits, network outages, or security breaches may impair the functioning of the Brevis ProverNet or the utility of BREV.

Protocol and network risks
The operation of the Brevis ProverNet depends on decentralized prover participation, accurate computation, and reliable job processing. Failures or underperformance by provers, governance disputes, or unexpected technical issues may affect network performance or service availability.

Governance and upgrade risks
Changes to protocol parameters, governance processes, or smart contract upgrades may modify how BREV is used or how the network operates. These changes may introduce uncertainties or affect the rights and obligations associated with the token.

Operational risks
Interruptions, delays, or failures in the systems supporting the network, including third-party infrastructure, cloud services, or hardware environments, may disrupt access to services or the execution of proofs.

No guarantee of value or performance
BREV provides no ownership, revenue, or redemption rights. Its value depends solely on market demand and the use of services within the Brevis ecosystem. There is no guarantee that network usage, demand for verifiable compute, or market valuations will develop as expected.

The issuer is a BVI Company Limited by Guarantee, a structure commonly used for non-profit, foundation-style entities. This legal form carries certain risks that may affect the issuer’s ability to support the Brevis ecosystem or meet its obligations. The following risks are non-exhaustive.

Regulatory and cross-border compliance risks
As a BVI entity conducting activities relevant to markets outside its jurisdiction, the issuer is exposed to regulatory changes and supervisory expectations in multiple regions. Amendments to BVI law, EU law, or other applicable regulations may impose additional requirements, restrict certain activities, or require modifications to governance or operational processes.

Governance structure risks
A BVI CLG does not have shareholders but members who act as guarantors. This structure may introduce governance risks such as limited member engagement, turnover of members, or potential misalignment between members, contributors, and network participants. Changes in the membership base or governance procedures may impact the issuer’s ability to function effectively.

Technology management risks
Although the Brevis protocol is decentralized, the issuer may oversee certain components, processes, or upgrade mechanisms. Deficiencies in software development, smart contract maintenance, security management, or quality assurance could introduce vulnerabilities or disrupt protocol functionality.

Operational and resource risks
The issuer’s operations depend on its ability to maintain adequate staffing, financial resources, and administrative capacity within the BVI CLG framework. Constraints in funding, loss of key personnel, ineffective decision-making processes, or operational disruptions may adversely affect its ability to support the Brevis protocol or meet its obligations.

Reliance on third-party service providers
The issuer relies on external firms for legal, accounting, administrative, technical, and compliance services. The performance, availability, or reliability of these providers may materially impact the issuer’s ability to fulfil its responsibilities. Failures or underperformance by third parties could lead to operational delays, compliance issues, or increased risk exposure.

Legal enforceability and jurisdictional risks
The BVI legal system is well-established, but certain obligations, agreements, or governance arrangements may require recognition or enforcement in other jurisdictions. Differences in legal frameworks or cross-border enforcement limitations may affect the issuer’s ability to execute responsibilities or resolve disputes effectively.

Financial sustainability risks
A BVI CLG must secure ongoing funding to support its activities. Insufficient financial resources, unexpected expenses, or changes in funding availability may impair the issuer’s ability to maintain operations, contribute to protocol development, or support governance and administrative processes.

No guarantee of continued support or involvement
The issuer’s long-term role is not guaranteed. The continued growth and operation of the Brevis ecosystem depend on decentralized participation, independent provers, community governance, and adoption by external contributors. The issuer may reduce or cease involvement without creating any entitlement or claim for token holders.

The acquisition, holding, and use of BREV involves risks that may result in partial or total loss of value. These risks arise from technical, market, regulatory, operational, and governance factors. Prospective holders should carefully consider the following non-exhaustive list of risks before acquiring or using BREV.

Market and price volatility
The market value of BREV may fluctuate significantly due to speculative activity, changing demand for verifiable compute, macroeconomic conditions, or overall market sentiment. Liquidity cannot be guaranteed, and holders may be unable to sell BREV at desired times or prices.

Dependence on Brevis ProverNet utility
BREV’s usefulness depends on the successful development, deployment, and adoption of the Brevis ProverNet. Technical delays, lower-than-expected prover participation, or limited demand for verifiable compute may diminish the token’s utility and perceived value.

Technical and smart contract vulnerabilities
BREV relies on blockchain networks and smart contracts that may be subject to bugs, vulnerabilities, exploits, or unintended behaviors. Attacks, network failures, or consensus issues could result in loss of tokens or disruption of intended functions.

Staking and slashing risks
Holders who stake BREV to operate as provers must meet performance, liveness, and correctness requirements enforced through automated slashing. Failure to meet these requirements may result in loss of staked tokens. Operating a prover requires technical expertise and operational reliability.

Regulatory and compliance uncertainty
Regulation of crypto-assets is evolving. Changes in laws or regulatory approaches may affect the ability to hold, transfer, or use BREV. Certain jurisdictions may impose restrictions, impose licensing requirements, or prohibit crypto-asset activities.

Dependence on third-party infrastructure
The use, storage, and transfer of BREV depend on third-party wallet software, node operators, blockchain infrastructure, and possibly trading venues. Outages, failures, or security incidents affecting these third parties may impair access to BREV.

Governance risks
BREV enables participation in protocol governance. Governance outcomes may be influenced by holders with large stakes, low participation levels, or coordinated actions by specific groups. Decisions made through governance may not align with the interests of all holders.

Cybersecurity risks
Holders are responsible for safeguarding their private keys and wallet credentials. Loss, theft, or compromise of private keys may result in irreversible loss of BREV. Holders may also be exposed to phishing attacks, malware, or social engineering.

Operational and development risks
Unanticipated technical challenges, software defects, resource constraints, or development delays may affect the operation or evolution of the Brevis ProverNet. Such issues may reduce the utility or reliability of services that depend on BREV.

No rights to financial returns or ownership
BREV does not grant equity, ownership, dividends, redemption rights, revenue sharing, or claims on the issuer. The token’s utility should not be interpreted as providing any financial return, and no economic performance of the issuer or protocol is guaranteed.

Network performance and transaction cost risks
High network congestion or degraded performance on underlying blockchain networks may lead to increased transaction costs, delays, or failed transactions when transferring BREV or interacting with the protocol.

The development, deployment, and long-term operation of the Brevis ProverNet involve technical, operational, organizational, and market risks that may affect the availability, performance, or evolution of the services supported by BREV. Prospective holders should consider the following non-exhaustive project implementation risks.

Technical development risks
The Brevis ProverNet requires complex cryptographic systems, zkVM technology, coprocessor circuits, and decentralized proving infrastructure. Unexpected bugs, design flaws, performance limitations, or integration challenges may delay or impair full functionality.

Dependency on advanced cryptography
Brevis relies on cutting-edge zero-knowledge proof technologies. Advances in cryptanalysis, changes in security assumptions, or the discovery of vulnerabilities in proving systems could require substantial redesign, patching, or replacement of core components.

Scalability and performance risks
Achieving reliable and scalable decentralized proving requires sustained prover participation, efficient auction mechanisms, and optimized proof generation. Insufficient throughput, inaccurate performance assumptions, or bottlenecks may slow adoption or reduce the effectiveness of network operations.

Operational resource constraints
Successful implementation depends on ongoing availability of engineering talent, funding, infrastructure, and community participation. Shortages in key resources or shifts in priorities may delay roadmap milestones or limit future development.

Third-party integration risks
Brevis interacts with multiple blockchain networks, rollups, developer tools, exchange venues, and external applications. Changes to these systems, failures of third-party services, or incompatibilities introduced by upgrades may disrupt expected functionality.

Governance and coordination risks
Protocol upgrades and parameter changes rely on governance participation. Low voter turnout, concentrated voting power, or conflicting stakeholder interests may hinder timely decision-making or result in outcomes that negatively impact the protocol.

Adoption and ecosystem risks
The utility of Brevis depends on developer adoption, prover participation, and integration by applications. Limited interest, competition from alternative technologies, or market shifts toward different architectures may reduce demand for the network’s services.

Security and implementation risks
Even with audits and testing, smart contracts, proving circuits, and on-chain components may contain vulnerabilities. Security incidents, exploits, or incorrect implementations may require emergency upgrades, result in system downtime, or impact user confidence.

Regulatory or compliance-related obstacles
Regulatory developments may impose operational constraints, require changes to system design, or delay deployment of certain features. Compliance burdens may increase operating costs or slow down project execution.

Long-term maintenance and upgrade risks
Continuous operation requires regular updates to cryptographic libraries, proof systems, security tooling, and infrastructure. Failure to keep the system current with technological progress may reduce security or market competitiveness.

The Brevis ProverNet relies on advanced cryptographic systems, zero-knowledge proof technology, and decentralized infrastructure. These technologies, while powerful, introduce risks that may affect security, performance, and long-term reliability. Prospective holders should consider the following non-exhaustive technology-related risks.

Zero-knowledge proof system risks
Brevis depends on zkVMs, recursive proofs, ZK-TLS circuits, and related proving systems. Vulnerabilities or theoretical breakthroughs in cryptanalysis may undermine security guarantees, requiring emergency updates, redesigns, or migration to new proving systems.

Complexity of cryptographic implementations
Implementing modern cryptography is inherently error-prone. Mistakes in circuit design, hashing logic, elliptic curve arithmetic, or verification code may create exploitable weaknesses, even if audits have been performed.

Smart contract and on-chain logic risks
The protocol relies on smart contracts for staking, slashing, job auctions, fee settlement, and governance. Bugs, incorrect assumptions, or unanticipated interactions between contracts may result in loss of funds, frozen functionality, or protocol disruption.

Blockchain network dependency
Transfers and interactions involving BREV rely on underlying blockchain networks. Congestion, outages, hard forks, consensus failures, or attacks on these networks may impair the ability to use or transfer BREV or operate prover-related functions.

Decentralized prover infrastructure risks
Brevis depends on a distributed set of provers running heterogeneous hardware configurations. Differences in hardware performance, GPU availability, network latency, or system reliability may impact proving speed, liveness, or consistency across the network.

Hardware and hardware-acceleration risks
High-performance proving may rely on specialized hardware such as multi-GPU clusters, FPGAs, or ASICs. Hardware failures, supply shortages, driver incompatibilities, or changes in vendor support may reduce network capacity or increase operational risk for provers.

Data availability and storage risks
Elements of the proving and verification process may depend on external data sources, historical blockchain state, or storage layers. Failures, incorrect data retrieval, or inconsistencies in these systems may produce invalid proofs or network disruptions.

Interoperability and integration risks
Brevis interacts with multiple blockchains, rollups, smart contract platforms, and application environments. Upgrades or changes on these external systems may introduce incompatibilities that require modifications, upgrades, or temporary suspension of certain features.

Emerging-technology risks
Zero-knowledge compute systems and decentralized coprocessors are relatively new technologies. Their long-term security, performance characteristics, and ecosystem support are still evolving. Assumptions that hold today may not remain valid over time.

Brevis employs a range of technical, operational, and security measures to reduce the risks associated with the use of advanced cryptographic systems and decentralized infrastructure. These measures are designed to enhance safety and reliability but cannot eliminate all risks. No technology, audit, or verification process can guarantee a risk-free system.

Independent security audits
Smart contracts, proving circuits, core protocol components, and critical infrastructure undergo independent third-party security audits. Audits help identify vulnerabilities, design flaws, or incorrect assumptions before deployment and during upgrades. However, audits cannot detect every potential issue and should not be interpreted as a guarantee of security.

Formal verification and rigorous testing
Where feasible, Brevis applies formal verification, property-based testing, fuzzing, and differential testing to critical components such as zkVM logic, cryptographic primitives, and on-chain settlement systems. These methods improve correctness and reduce implementation risk, but their effectiveness is limited by the accuracy of the specifications and the scope of what can be formally proven.

Community and third-party scrutiny
Open-source repositories enable external researchers, developers, and the broader security community to review, test, and provide feedback on protocol code, improving transparency and widening the scope of security oversight.

Limitations of mitigation measures
Despite the use of audits, formal verification, testing, and other mitigation methods, no cryptographic system, blockchain protocol, or smart contract environment can be made entirely free of risk. Unknown vulnerabilities, emerging attack vectors, or limitations of current technology may still lead to failures or losses. Users should understand that these mitigation measures reduce but do not eliminate technology-related risks.