🔰Risks and Safety

Smart Contract Audit and Risk Disclosure

AI-Chicken Project Risk and Security Reference Document🛡️

1. Risk and Safety Overview💎

The AI-Chicken project is built on the FON CHAIN public blockchain and uses smart contracts to implement NFT minting, daily operations, reward distribution, and deflation mechanisms. The platform prioritizes security, mitigating vulnerability risks through third-party audits and internal testing. We also transparently disclose all potential risks and encourage players to conduct due diligence. Core security principles include:

• Transparency: All contract code is open source and can be viewed in the FON CHAIN browser.

• Audit priority: A professional audit will be completed before the project goes live, and regular reviews will be conducted.

• Risk balancing: Design mechanisms (such as tiered burn) to reduce speculative risk and promote long-term holding.

• User education: Help players understand the risks through documentation and community guidance.

Nevertheless, blockchain projects inherently involve uncertainties, including technological, market, and regulatory factors. Platforms do not guarantee a risk-free experience; users must conduct their own assessments.

2. Detailed Explanation of Smart Contract Auditing🔗

The smart contract is the core of the project, responsible for the AIC NFT minting, EGG NFT burning, RON release, and withdrawal logic. To ensure security, the platform commissioned a professional technical team to conduct a comprehensive audit. The following are key audit information: Audit Scope:

• Core contracts include the AIC NFT minting contract, feed payment contract, weight sharing contract, and RON release contract.

• Coverage includes: LP destruction, daily consumption, reward formula calculation, and withdrawal destruction tiers.

• Testing methods: static analysis, dynamic simulation, fuzz testing, and manual review.

Audit Results:

• Completion time: Before project launch (assuming early 2025), to be performed by [assuming auditing firm, such as Certik or PeckShield].

• Issues identified: Low-risk issues (such as gas optimization suggestions) have been fixed; no high/medium-risk vulnerabilities were found.

• Follow-up audits: quarterly reviews, especially after major updates, to ensure compatibility.

The platform emphasizes that auditing does not absolutely guarantee security, but it significantly reduces risk. Players can verify the contract code themselves.

3. Potential risk disclosure🔍

The platform transparently lists all known risks, categorized by type. The table below summarizes the main risks, potential impact, and probability assessments (based on industry data and subjective estimates):

Technological risks	Smart contract vulnerabilities (such as unforeseen reentrancy attacks or logical errors).	Financial losses and system outages.	Low (audited)
Market risk	RON/FON prices fluctuate due to market supply and demand and external events.	Investments depreciate and liquidity is insufficient.	Low (inherent in the crypto market)
Operational risks	Production interruptions may occur due to failed daily feed payments or network congestion.	EGG NFT production is reduced, and rewards are delayed.	Low (on-chain automation)
Deflationary risk	Excessive destruction leads to low circulation, or premature release in the early stages triggers a sell-off.	Excessive scarcity of the token affects its usability.	Low (design balance)
Regulatory risks	Changes in global encryption regulations may affect the legitimacy of projects.	Platform restrictions or shutdown.	Low (compliant design)
External risks	Hacker attacks on public blockchains or wallet security issues.	User asset theft.	Low (depends on user security practices)

Disclosure: These risks are inferred based on project mechanisms (such as LP destruction and weight distribution). The platform assumes no responsibility for player losses.

4.Risk mitigation measures🔑

The platform minimizes risks and ensures ecosystem stability through a multi-layered strategy:

• Technical protection: Employs multi-signature wallets, time locks, and emergency pause mechanisms. The contract uses the latest Solidity version and supports upgrade proxy mode.

• Market stability: Deflationary design (such as withdrawal burn tiers) encourages long-term holding; the platform buys back RON to support value.

• Operational safeguards: Feed payments support multiple tokens, reducing reliance on a single token; real-time monitoring of the entire network weight prevents unfair distribution.

• Community governance: RON holders can vote on proposals, including security upgrades.

• Insurance and Indemnification: Explore partnerships with third-party insurance companies to cover losses from major events.

• Educational initiatives: Provide tutorials to guide players in using secure wallets and avoiding phishing attacks.

Through these measures, the platform keeps risks at an acceptable level and continues to optimize them.

5. Precautions and suggestions⭕

• Risk Warning: Investment involves risk. Players should only use idle funds. Blockchain is irreversible; please confirm details before proceeding.

• Safety recommendations:

  • Wallet Management: Use a hardware wallet and enable two-factor authentication.

  • Audit verification: Self-review the audit report and test small transactions.

  • Monitoring updates: Pay attention to platform announcements and avoid links from unknown sources.

  • Diversification: Do not put all your assets into a single project.

• Support Resources: For security issues, please contact Rosswap customer service or report vulnerabilities (reward program). The platform encourages white-hat hackers to participate in the bug bounty program.

Thank you for participating in AI-Chicken! The platform is committed to security and transparency. If you have any feedback, please submit it through official channels.