Adopt-An-agarwood™ | Value Sharing | Pricing & Payment | Sharing Calculation | Risk Disclosure
RISK DISCLOSURE STATEMENT
This Annex forms part of the Adopt-An-Agarwood™ Value-Sharing Agreement. It is intended to provide full transparency to Tree Stewards regarding the biological, environmental, regulatory, and market risks inherent in agarwood adoption and value-sharing participation.
1. Biological Risks
- Agarwood formation is a natural biological process and may vary per tree.
- Resin induction may not succeed in all trees.
- Trees are susceptible to:
- Pests and diseases
- Drought, flooding, and other extreme weather
- Natural disasters (typhoons, earthquakes, fire)
- Growth rates and resin development timelines can vary significantly.
2. Operational Risks
- Plantation operations depend on qualified personnel and standard procedures.
- Delays or operational challenges may occur due to labor, logistics, or equipment issues.
- Induction, harvesting, and processing methods may be adjusted based on best practices and regulatory compliance.
3. Market & Price Risks
- Agarwood prices fluctuate based on supply, demand, and market conditions.
- Net realized value may vary by resin grade, global market trends, and buyer specifications.
- Product allocation or revenue-equivalent sharing is outcome-dependent.
4. Regulatory & Compliance Risks
- All operations must comply with DENR, CITES, and other applicable local and international laws.
- Export of agarwood products is subject to permits and approvals.
- Changes in regulations or permit delays may affect timing or availability of value realization.
5. Financial & Currency Risks (International Version)
- Currency conversion rates may affect USD-denominated payments and value realization.
- Any taxes, duties, or regulatory fees in the Steward’s home jurisdiction are the Steward’s responsibility.
6. Non-Guarantee & Disclaimer
- No minimum yield, price, or return is guaranteed.
- Adoption fees are non-refundable and are not contingent on harvest success.
- Participation is voluntary and carries inherent uncertainties due to natural and market factors.
7. Steward Acknowledgment
By signing the Adopt-An-Agarwood™ Value-Sharing Agreement, the Steward acknowledges that they:
- Understand the risks outlined in this Annex
- Accept that value-sharing is outcome-based and not guaranteed
- Agree to proceed with full awareness of biological, operational, market, and regulatory uncertainties