Project Information
About Cluster Protocol
Cluster Protocol is an AI infrastructure network built on Base. In plain language, it is a single place where developers, applications, and autonomous software agents can run open-source AI models, license datasets, rent GPU compute, and pay for all of it programmatically.
Today, a developer who wants to build an AI application has to assemble that stack themselves: find and host models, negotiate separately with cloud and GPU providers, source data under a workable licence, and wire up billing for each of those relationships. Cluster Protocol consolidates those steps into one network with a single interface and a single settlement asset.
The network is composed of the following primary components:
- Serverless inference. Access to more than 500 open-source models through a single API, without the user provisioning, hosting, or scaling infrastructure.
- GPU compute provisioning. On-demand access to GPU capacity for training, fine-tuning, and inference workloads.
- Dataset marketplace. A marketplace in which dataset owners can list, licence, and monetise datasets, and in which builders can acquire data for model training and evaluation.
- Agent payment rails. Implementations of x402, an HTTP-native payment standard, and ERC-8004, an emerging agent identity and trust standard, which together allow autonomous software agents to discover, authenticate to, and pay for network services without a human approving each individual transaction.
- Cluster Voice. A voice interface layer for building and deploying speech-driven AI applications on the network.
- MCP Hub. A registry and execution surface for Model Context Protocol servers, allowing models and agents on the network to connect to external tools and data sources.
- CodeXero. The consumer-facing deployment surface built on Cluster Protocol, which allows users to generate and deploy applications from natural language prompts.
The network generates revenue from inference fees, margin on compute provisioning, and dataset marketplace fees.
Network status
Cluster Protocol is live on Base mainnet. As at the date of this disclosure, the network has processed more than 100,000 transactions over the x402 payment rail and records more than 6,000 weekly transacting users, placing it on the Base ecosystem leaderboard.
Entity structure
The Cluster Protocol network and the $CP token are supported by the following entity:
- Entity
- Open Protocol Labs Ltd (Company No. 2208389)
- Jurisdiction
- British Virgin Islands
- Role
- Issuer of the $CP token. Responsible for token issuance, treasury administration, ecosystem programmes, and the arrangements described in this disclosure.
Open Protocol Labs Ltd is the only entity in the structure. There is no separate foundation, development company, or affiliated operating entity. Token issuance, treasury administration, ecosystem programmes, market making arrangements, exchange arrangements, and protocol development are all conducted by or on behalf of Open Protocol Labs Ltd.
Directors, officers, and key contributors
The following persons are directors, officers, or contributors who have materially contributed to the development of the Cluster Protocol network and the $CP token:
Asep Muslih Imamudin
Director, Open Protocol Labs Ltd
Director of Open Protocol Labs Ltd, with responsibility for corporate governance, statutory compliance, day-to-day operational coordination, and execution of the entity's obligations.
Yatharth Jain
Founder and Chief Executive Officer, Cluster Protocol
Founder of Cluster Protocol. Yatharth leads the direction of the network and the development of the $CP token, with a background in Web3 business development and a focus on accessible AI infrastructure.
Development of the Cluster Protocol network is led by the internal team of Open Protocol Labs Ltd.
Token Information
- Token name
- Cluster Protocol
- Ticker
- $CP
- Standard
- ERC-20
- Network
- Base (native), with cross-chain transfers enabled via Chainlink CCIP
- Decimals
- 18
- Initial total supply
- 5,000,000,000 $CP
- Maximum supply
- 5,000,000,000 $CP. Fixed. No further tokens can be created.
- Circulating supply at listing
- 1,369,091,667 $CP (27.38% of total supply)
Utility
$CP is the settlement asset of the Cluster Protocol network.
- Inference payments. Inference fees across the network's models are settled in $CP.
- Compute payments. GPU compute provisioned through the network is paid in $CP.
- Dataset settlement. Dataset licensing on the marketplace is settled in $CP.
- Agent payments. Autonomous agents settle x402 and ERC-8004 payments in $CP.
- Staking. $CP may be staked for access benefits, described under Staking below.
Governance. $CP confers no governance rights over the protocol or any legal entity.
Open Protocol Labs Ltd retains discretion, subject to applicable law, to modify or discontinue token utilities and programmes. No roadmap item or future functionality is guaranteed.
Staking
$CP holders may stake tokens into a staking pool to obtain access benefits across the Cluster Protocol network.
Staking $CP is not a consensus mechanism. Cluster Protocol does not operate its own blockchain, and $CP is not staked to secure a network, validate transactions, or participate in block production. There is no validator set, no delegation to node operators, and no slashing.
Staking is designed to serve the following functions within the network:
- Network access tier. Staked balances determine a user's access tier on the network.
- Throughput and priority. Higher tiers receive greater inference throughput, higher rate limits, and priority handling of requests during periods of high demand.
- Fee treatment. Higher tiers receive preferential fee treatment on inference, compute, and dataset marketplace transactions.
- Incentive multipliers and priority access. Stakers participate at enhanced rates in ecosystem incentive programmes and may receive early access to new models, datasets, and features.
Rewards and funding
Staking rewards, where offered, are denominated in $CP.
Rewards are funded from $CP that accrues to the protocol programmatically through network activity. Network services, including inference, compute, and dataset marketplace transactions, are settled in $CP, and a portion of the protocol fees accrued in $CP funds staking incentives. Rewards may also be supported by unallocated treasury reserves.
Staking incentives are determined by Open Protocol Labs Ltd under a published incentive policy. There is no fixed revenue share, no entitlement to protocol revenue, and no guaranteed yield. Reward rates may change over time as the ecosystem grows, and all distributions are verifiable on-chain.
The incentive policy will be published at or before the launch of the staking programme.
No new issuance
No new $CP is minted for staking rewards, no vesting schedule is accelerated, and no allocation described in Section 3 is repurposed to fund rewards. Staking does not increase total supply, which remains fixed at 5,000,000,000 $CP.
Locked tokens
Locked tokens cannot be staked. Tokens subject to a lock-up or vesting schedule, including the entirety of the Seed, Series A and Strategic, and Team allocations, cannot be staked or used to participate in any $CP staking programme while they remain locked.
Status
Open Protocol Labs Ltd intends to launch the staking programme after the token generation event. Tier definitions, lock and cooldown terms, and reward parameters will be published when the programme launches.
Discretion
Open Protocol Labs Ltd may modify, suspend, or discontinue staking programmes, tiers, benefits, and reward rates at any time, subject to applicable law. No aspect of the staking programme is guaranteed, and no return on staked $CP is offered or promised.
Rights, Value Accrual, and the Token to Equity Distinction
$CP tokens do not represent, and do not confer:
- Equity, shares, membership interests, or any other ownership interest in Open Protocol Labs Ltd or any affiliated entity;
- Any entitlement to the revenues, profits, or assets of Open Protocol Labs Ltd or any affiliated entity;
- Any right to dividends, distributions, or profit sharing;
- Governance rights over any legal entity;
- Any fiduciary protections of the kind typically associated with shareholders; or
- Any contractual relationship between the holder and Open Protocol Labs Ltd or any affiliated entity.
Token is not equity
Any equity interest in Open Protocol Labs Ltd is separate and distinct from the $CP token. Holding $CP confers no equity rights and no claim to equity value.
Supply Dynamics
Maximum supply
The maximum supply of $CP is 5,000,000,000 tokens. No more than 5,000,000,000 $CP will ever exist.
The entire supply was created in a single genesis mint at deployment and that operation cannot be repeated. There is no inflation, no emissions, no block rewards, and no mechanism by which new $CP is created beyond the fixed supply. Supply does not increase over time under any circumstance.
Cross-chain transfers
$CP is a Base-native token with Chainlink CCIP integrated for cross-chain transfers.
Cross-chain transfers use CCIP's burn-and-mint model and do not create supply. Tokens are burned on the source network and the identical amount is minted on the destination network by the Chainlink token pool, so aggregate supply remains 5,000,000,000 at all times.
Burn
There is no burn mechanism and no buyback programme. No $CP is destroyed and total supply does not decrease over time.
Future issuance
There are no anticipated future token issuances or new token launches by Open Protocol Labs Ltd. No second token, receipt token, liquidity provider token, or staked derivative of $CP is planned.
Token Distribution
- Seed4.29%
- Series A and Strategic9.33%
- Community40.38%
- Liquidity8.00%
- Treasury21.00%
- Team17.00%
Allocation
| Category | % of supply | Tokens | % at TGE | Unlocked at TGE |
|---|---|---|---|---|
| Seed | 4.29% | 214,500,000 | 0% | 0 |
| Series A and Strategic | 9.33% | 466,666,667 | 0% | 0 |
| Community | 40.38% | 2,018,833,333 | 35% | 706,591,667 |
| Liquidity | 8.00% | 400,000,000 | 100% | 400,000,000 |
| Treasury | 21.00% | 1,050,000,000 | 25% | 262,500,000 |
| Team | 17.00% | 850,000,000 | 0% | 0 |
| Total | 100.00% | 5,000,000,000 | — | 1,369,091,667 |
Circulating supply at listing is 1,369,091,667 $CP, representing 27.38% of total supply.
- Seed — Early backers, Frens and Family round, and angels
- Series A and Strategic — Growth capital
- Community — Airdrop, ecosystem grants, campaign reserve
- Liquidity — DEX and CEX market making
- Treasury — Treasury and operations
- Team — Core team retention
Unlock schedule
| Category | TGE | Cliff | Vesting | Monthly release |
|---|---|---|---|---|
| Seed | 0% | 12 months | 24 months | 8,937,500 $CP, months 13 to 36 |
| Series A and Strategic | 0% | 12 months | 24 months | 19,444,444 $CP, months 13 to 36 |
| Community | 35% | None | 36 months | 36,451,157 $CP, months 1 to 36 |
| Liquidity | 100% | None | None | Fully unlocked at TGE. |
| Treasury | 25% | 3 months | 36 months | 21,875,000 $CP, months 4 to 39 |
| Team | 0% | 18 months | 24 months | 35,416,667 $CP, months 19 to 42 |
All cliff and vesting periods run from the token generation event. Vesting after any applicable cliff is linear and released monthly. Month 1 is the first month after the token generation event. The initial total supply is fully unlocked by month 42 following the token generation event.
Cumulative unlocked supply
- At launch
- 27.4%
- 1.37B $CP
- Month 12
- 40.1%
- 2.00B $CP
- Month 24
- 65.1%
- 3.26B $CP
- Month 42
- 100.0%
- 5.00B $CP
Notes on the schedule
- Insider allocation. Investor allocations (Seed and Series A and Strategic combined) represent 13.62% of total supply, and Team represents 17.00%, for a combined insider allocation of 30.62%. Neither category receives any allocation at the token generation event.
- Team cliff. The Team allocation is subject to an 18-month cliff, which is longer than the 12-month cliff applied to investors.
- Team allocation. The Team allocation comprises team members of Open Protocol Labs Ltd, including founders, employees, and contractors. All recipients in this category are subject to the same 18-month cliff and 24-month linear vesting schedule.
- Exchange allocations. Allocations to centralized exchange affiliated entities are yet to be decided. Any such allocations will be drawn from the Liquidity allocation, and the details will be added to this section once finalized.
Supply at launch
At the token generation event, 1,369,091,667 $CP (27.38% of total supply) is unlocked. This comprises the Liquidity allocation in full, 35% of the Community allocation, and 25% of the Treasury allocation. The remaining 3,630,908,333 $CP (72.62% of total supply) is locked and subject to the schedules set out above.
No portion of the Seed, Series A and Strategic, or Team allocations is unlocked at the token generation event.
Unlocked versus in public circulation. For clarity, “unlocked” means the tokens are not subject to a lock-up or vesting restriction at the token generation event; it does not mean that all such tokens are in public circulation on day one. Of the unlocked amount, the Community tranche is distributed to the public through airdrops, rewards, and grants; the Liquidity allocation is deployed with market makers and on trading venues to support orderly markets; and the Treasury tranche is held by Open Protocol Labs Ltd and is not sold into the market at launch.
Staking and locked tokens
Locked tokens cannot be staked. No allocation subject to a cliff or vesting schedule may be staked or used to participate in any $CP staking programme while it remains locked. This applies to the whole of the Seed, Series A and Strategic, and Team allocations, and to the unvested portions of the Community and Treasury allocations.
The effect is that staking benefits accrue only to tokens in public circulation, and holders of locked supply, including investors and the team, cannot accrue staking benefits ahead of the market.
Vesting
Locked allocations vest as set out in the schedule above. Seed and Series A and Strategic are subject to a 12-month cliff followed by 24 months of linear monthly vesting. Team is subject to an 18-month cliff followed by 24 months of linear monthly vesting. Treasury is subject to a 3-month cliff followed by 36 months of linear monthly vesting. The locked portion of the Community allocation vests linearly over 36 months. All schedules run from the token generation event, and the initial supply is fully vested by month 42. Locked allocations are released only in accordance with these schedules.
Community allocation breakdown
| Sub-allocation | Tokens | % of supply | Status |
|---|---|---|---|
| Day-one community airdrop | 706,591,667 | 14.13% | Unlocked at TGE |
| Ecosystem Grants | 656,120,833 | 13.12% | Vesting linearly over 36 months |
| Campaign Reserve | 656,120,833 | 13.12% | Vesting linearly over 36 months |
| Total | 2,018,833,333 | 40.38% |
Figures are rounded to two decimal places.
Treasury and community use of proceeds
- Community allocation. Tokens in the Community allocation are for the community: the airdrop, ecosystem grants, and campaign-based user rewards. They confer no benefit on insiders, team members, or employees.
- Treasury allocation. The Treasury allocation funds the ongoing operations of Open Protocol Labs Ltd, including personnel costs, development, legal, administrative, and compliance functions, as well as ecosystem programmes. Existing contributors may, in the ordinary course, receive future allocations from the Treasury for future work on the Cluster Protocol technology.
Funding history
Open Protocol Labs Ltd and its predecessor entities have raised a total of $7,750,000 across two rounds. Investors in both rounds subscribed for token rights subject to the vesting schedules set out above.
| Round | Year | Amount | Investors |
|---|---|---|---|
| Frens and Family | 2023 to 2024 | $750,000 | Mapleblock Capital, Tal Cohen, Sanders Gortez (Hello Labs), and other angels |
| Series A and Strategic | 2025 to 2026 | $7,000,000 | Led by DAO5, with PaperVC, Mapleblock Capital, JPEG Trading, and others. |
| Total raised | $7,750,000 |
Instrument and vesting. Investors in both rounds acquired token rights under Simple Agreements for Future Tokens (SAFTs). Tokens acquired under both rounds are subject to a 12-month cliff from the token generation event followed by linear monthly vesting over a further 24 months. No tokens from either round are released at the token generation event.
Airdrop
The airdrop is funded from the Community allocation, which represents 40.38% of total supply, and forms part of the Community tranche unlocked at the token generation event.
- Allocation. 706,591,667 $CP, representing 14.13% of total supply, is allocated to the day-one community airdrop, corresponding to the Community tranche unlocked at the token generation event.
- Eligibility. The airdrop is allocated between the Cluster Protocol user community and the broader community at large. The user community includes users of CodeXero, wallets that have transacted on the network including over the x402 payment rail, testnet and campaign participants, and dataset contributors. Allocations are based on engagement and activity over time rather than on wallet wealth.
- Distribution and claim. Airdropped tokens are claimable from the token generation event and are fully unlocked at claim. The claim window is seven days from the token generation event, and unclaimed tokens are returned to the Treasury allocation. Full eligibility criteria and the distribution methodology will be published prior to distribution.
Published references
- Announcement: x.com/OpenProtocolFND
- Recipient list: published spreadsheet
Token Sale Disclosures
No public token sale has been conducted in respect of the $CP token.
$CP has not been offered or sold through any public sale platform, initial exchange offering, launchpool with a purchase component, or community sale. The only prior distributions of token rights are the two private funding rounds described in Section 3, which were made to institutional investors and angels and which are subject to the vesting schedules set out in that section.
Circulating supply at listing therefore derives solely from the Community, Liquidity, and Treasury allocations, and not from any sale to the public.
Conflicts of Interest
No related-party transactions involving the token other than the token allocations described in this disclosure have occurred.
Market Makers and Liquidity
The Liquidity allocation, representing 8.00% of total supply (400,000,000 $CP) and fully unlocked at the token generation event, is designated for market making across centralized and decentralized venues.
Market maker arrangements
Market maker arrangements are with Davinci, Lhava, and Blockchain.com. The loan supplies given to the designated market makers are as follows.
| Market maker | Loan supply (% of total supply) |
|---|---|
| Davinci | 0.50% |
| Lhava | 0.33% |
| Blockchain.com | 0.25% |
Security
Incident history
No hacks or material security breaches involving the Cluster Protocol network or the $CP token have been reported to date.
Audit
The $CP token smart contract was audited by CredShields Technologies PTE. LTD. The audit was conducted between 22 and 23 June 2026, with a retest performed on 23 June 2026.
- Auditor
- CredShields Technologies PTE. LTD.
- Scope
- CP Token smart contract (CPToken.sol), at commit 62cfed0a19ac056518dd78f063b7a3106c08368d
- Audit dates
- 22 to 23 June 2026, with retest on 23 June 2026
- Methodology
- Manual review aligned to the OWASP Smart Contract Security Verification Standard, Smart Contract Weakness Enumeration, and Smart Contract Secure Testing Guide
No critical or high severity findings were identified. The full report, including all findings and the project's responses, is available at the link above.
Scope. The CredShields engagement covered the $CP token smart contract.
The $CP token contract is open source and available at github.com/clusterprotocol/CPTOKEN.
Administrative controls
The following statements describe the administrative controls applying to the $CP token contract:
- Pause transfersNone
- Blacklist addressesNone
- Clawback holder balancesNone
- Freeze or seize balancesNone
- Upgrade contract logicNone
- Mint beyond MAX_SUPPLYNone
- Role-based minting (Chainlink token pool)Present
- Supply. The genesis supply was minted once in the constructor on the home chain, and that operation cannot be repeated. Minting on any network is restricted to MINTER_ROLE, held by the Chainlink token pool, and is bounded in code by the MAX_SUPPLY constant of 5,000,000,000 $CP; any mint that would exceed it reverts.
- Balance controls. No administrative key can seize, freeze, or arbitrarily transfer a holder's balance. The token contract contains no pause function, no blacklist, and no clawback. Burning affects only tokens held by the caller, or tokens a holder has explicitly approved via allowance; no administrator can burn or move tokens from a wallet without that holder's own approval. Gasless transfer functions under EIP-3009 execute only against the holder's own signature and cannot be initiated by an administrator.
- Upgradeability. The token contract is not upgradeable. It is a fixed implementation with no proxy, so its logic cannot be changed after deployment.
- Administrative scope. The administrative role (DEFAULT_ADMIN_ROLE) manages role assignments via the standard OpenZeppelin AccessControl module. Its intended functions are granting mint and burn roles to a Chainlink token pool, and updating the CCIP admin used for Chainlink registry registration. Mint and burn roles are granted to the Chainlink BurnMintTokenPool on each network where $CP is available, to operate cross-chain transfers. The administrative role cannot pause, freeze, blacklist, or seize balances.
Risks
The following risk factors relate to the $CP token, the Cluster Protocol network, and Open Protocol Labs Ltd. They apply to acquiring, holding, using, and transacting in the token, as well as to the operation of the network and its underlying infrastructure. This list is not exhaustive.
51 risk factors across 7 categories
- High volatility and speculative markets. Crypto-assets, including $CP, can experience extreme price volatility driven by speculation, macroeconomic conditions, market sentiment, technical developments, security incidents, or regulatory actions. Holders may lose some or all of the value of their $CP.
- Speculative nature. No assurance of future value, performance, or rewards is made regarding $CP. The token's value depends on network utility, user adoption, market demand, and community engagement, and is subject to fluctuation based on external perceptions and market conditions.
- Liquidity may be limited. Even if $CP is listed on one or more venues, there may be insufficient liquidity, wide spreads, and slippage, particularly around launch, major announcements, or unlock events, making it difficult to buy or sell $CP at desired prices or sizes.
- Delisting and trading restrictions. Any exchange or trading venue may suspend trading, impose restrictions, or delist $CP for legal, regulatory, compliance, technical, or business reasons, which could materially reduce liquidity and accessibility.
- Exchange and intermediary risk. Centralized exchanges, market makers, custodians, wallets, and other intermediaries may suffer hacks, outages, insolvency, internal fraud, or operational failures leading to loss of access to $CP or loss of funds. Open Protocol Labs Ltd is not a contractual party to trades executed on third-party venues and is not responsible for their performance or solvency.
- Market making and liquidity provisioning risk. The Liquidity allocation representing 8.00% of total supply is fully unlocked at the token generation event and is deployed through market making arrangements. These arrangements may not be effective, may be reduced or terminated, or may themselves contribute to volatility, and involve counterparty and execution risk. Tokens deployed to market makers are not subject to a vesting schedule.
- Evolving regulation. Laws and regulations relating to crypto-assets, token distributions, and payment infrastructure are evolving and differ by jurisdiction. Regulatory changes or differing interpretations by government authorities may adversely affect the availability, transferability, or utility of $CP, or the operation of the Cluster Protocol network.
- Classification and enforcement risk. Authorities may classify $CP or related activities differently than Open Protocol Labs Ltd expects, including as a security, financial instrument, or payment instrument, potentially leading to enforcement actions, penalties, limitations on trading, or constraints on ecosystem activities.
- Artificial intelligence regulation. The regulation of artificial intelligence systems is developing rapidly and unevenly across jurisdictions, including under the EU Artificial Intelligence Act and comparable frameworks. Obligations relating to model provenance, transparency, safety testing, high-risk system classification, and traceability of training data may apply to participants in the network or to its operators. Compliance requirements that are technically or commercially difficult to satisfy could restrict which models or datasets can be made available, in which jurisdictions, and on what terms.
- Data protection and dataset provenance risk. The dataset marketplace involves the listing and licensing of data by third parties. Datasets may contain personal data subject to the General Data Protection Regulation, the California Consumer Privacy Act, or comparable frameworks, or may contain material subject to third-party intellectual property rights. Open Protocol Labs Ltd may not be able to independently verify the provenance, licensing status, or lawfulness of every dataset listed. Claims, enforcement actions, or takedown obligations arising from listed datasets could result in liability, removal of listings, reduced marketplace activity, or reputational harm.
- Model licensing risk. The network provides access to open-source models released by third parties under a range of licences, some of which impose restrictions on commercial use, redistribution, output usage, or downstream fine-tuning. Changes to model licences, withdrawal of models by their publishers, or a determination that a particular use exceeds the scope of a licence could reduce the models available on the network or create liability exposure.
- Sanctions, anti-money laundering, and access restrictions. Access to the network, to exchanges, or to token-related programmes may be restricted by sanctions laws, anti-money laundering requirements, know-your-customer policies, or jurisdictional limitations.
- Tax uncertainty. The tax treatment of acquiring, holding, and disposing of $CP is uncertain in many jurisdictions and may change. Holders are responsible for determining and complying with their own tax obligations.
- Unlock and sell pressure. 72.62% of total supply is locked at the token generation event and unlocks progressively over 42 months. Investor allocations begin unlocking at month 13 and the Team allocation at month 19. As these tokens unlock, additional supply enters the market, which could create selling pressure, increase volatility, or negatively affect the market price, particularly around cliff dates and periodic unlocks.
- Concentrated day-one supply. Of the 27.38% of total supply unlocked at the token generation event, the largest components are the Community and Liquidity allocations. Deployment decisions in respect of these allocations are made by Open Protocol Labs Ltd and may materially affect market conditions.
- Cross-chain supply integrity. The aggregate 5,000,000,000 $CP cap is maintained across networks by burn-and-mint mechanics rather than by a single on-chain global cap. A failure, exploit, or misconfiguration in the cross-chain messaging layer or the token pool contracts could in principle result in aggregate supply exceeding the stated cap, or in tokens burned on a source chain not being minted on the destination chain.
- Demand dependency on network usage. Because $CP is used to pay for inference, compute, and dataset access, demand for the token is closely tied to actual usage of the network. If usage does not grow as expected, or if users transact predominantly in other assets, demand for $CP may be materially lower than anticipated.
- Fee denomination and pricing risk. Network services are priced against underlying costs incurred in fiat or other assets, including GPU capacity. Volatility in the price of $CP relative to those costs could compress margins, require frequent repricing of network services, or make pricing unpredictable for users.
- Staking rewards are not guaranteed and depend on network activity. Staking rewards are funded from $CP that accrues through protocol usage and from unallocated treasury reserves, not from new issuance. Accrual depends on actual network activity and may be lower than expected, and reward rates may decline materially or reach zero. No fixed or guaranteed return is offered, and Open Protocol Labs Ltd may modify, suspend, or discontinue the staking programme, its tiers, its benefits, and its reward rates at any time.
- Staking confers no network security role or claim. Staking $CP does not secure a blockchain, validate transactions, or confer any governance right, ownership interest, or claim on the revenues or assets of Open Protocol Labs Ltd. The benefits of staking are limited to access to network services and participation in ecosystem programmes, both of which may change.
- Staking contract risk. Staking is administered through smart contracts, which may contain vulnerabilities or be integrated incorrectly. Staked tokens may be subject to a lock or cooldown period during which they cannot be withdrawn or sold, including during periods of price volatility.
- Token utility may evolve. Changes to protocol design, economics, or implementation may alter token utility, demand, or incentive alignment. Open Protocol Labs Ltd reserves the right to propose changes to token utility.
- No governance rights. $CP does not confer governance rights. Holders have no ability, in their capacity as holders, to vote on protocol changes, parameter adjustments, or treasury decisions. Influence over the network's direction may be exercised primarily through off-chain processes, which may be slower, less predictable, or disproportionately influenced by particular stakeholders.
- Dependence on Base and Ethereum. $CP is issued on Base, which settles to Ethereum. Congestion, sequencer downtime, or other disruption on either network could impair transfers and payments.
- Cross-chain availability risk. Where $CP is available on networks beyond Base, disruption on any such network could affect holders on that network.
- Cross-chain messaging dependency. Cross-chain movement depends on Chainlink CCIP and its token pool contracts, operated by third parties. Outage, exploit, or misconfiguration could prevent transfers between networks or affect supply accounting.
- Administrative key risk. The token contract uses role-based access control on each network. Key compromise or misconfiguration could affect supply integrity or cross-chain operation.
- Inference and output quality risk. Users rely on model outputs produced by infrastructure they do not control. Incorrect or degraded outputs may not be immediately detectable.
- Compute supply risk. GPU capacity is sourced from third-party providers. Concentration, shortages, or pricing shocks could reduce capacity or degrade service.
- Smart contract risk. Token distribution, vesting, and payment functions run through smart contracts, which may contain vulnerabilities. The audit described in Section 8 covered the token contract only.
- Emerging standards risk. x402 and ERC-8004 are early-stage standards that may change, fail to gain adoption, or contain design weaknesses.
- Autonomous agent risk. Agents can transact without per-transaction human approval. Misconfigured or compromised agents may execute unintended, irreversible transactions.
- Exploits, hacks, and unknown vulnerabilities. Any network and its software stack carries a risk of attack. Vulnerabilities in smart contracts, APIs, node implementations, or supporting infrastructure could lead to service disruption, incorrect accounting, or theft of assets.
- Key management and custody risk. Holders are responsible for safeguarding private keys and wallet credentials. Loss or compromise of keys may result in permanent loss of $CP. Custodial providers may also fail or be compromised.
- Fraud, phishing, and counterfeit assets. Token launches are commonly targeted by scams, including impersonation, fake airdrops, counterfeit contract addresses, and malicious links. Users should verify contract addresses against official sources before transacting, and may lose funds by interacting with fraudulent websites, wallets, or contracts.
- Prompt injection and adversarial input risk. AI systems accessible through the network may be susceptible to prompt injection, model extraction, data poisoning, and other adversarial techniques. Successful attacks could cause models to produce harmful output, leak information supplied by users, or trigger unintended actions in agent workflows built on the network.
- Emerging cryptographic threats. Advances in cryptanalysis or computing, including quantum computing, could weaken cryptographic assumptions used in wallets and blockchains, potentially affecting asset security over time.
- Early-stage entity risk. Open Protocol Labs Ltd was recently established. There is no assurance it will continue operating successfully or deliver its planned contributions to the network.
- Single-entity structure. Token issuance, treasury administration, ecosystem programmes, and development are concentrated in one entity, without the separation of functions a multi-entity structure provides.
- Concentration of ownership and control. Ownership and control of Open Protocol Labs Ltd are concentrated, and decisions on treasury deployment, token allocation, and strategy are made by a small number of individuals. Token holders have no governance rights over these decisions, which may create actual or perceived conflicts with holder interests.
- Key personnel risk. The network depends on a small number of key individuals whose loss could disrupt operations or delay development.
- Third-party reliance. Distribution, custody, know-your-customer processes, cross-chain messaging, compute, and model hosting rely on third-party vendors whose failure could disrupt operations.
- Financial and treasury risk. Open Protocol Labs Ltd may face liquidity or market risk. A substantial portion of treasury value is denominated in $CP and correlated with its market price.
- Legal and reputational risk. Open Protocol Labs Ltd may face lawsuits, investigations, or negative publicity, which could affect adoption and the market value of $CP.
- Adoption risk. The long-term success of the network depends on adoption by developers, applications, dataset contributors, compute providers, and agent operators. There is no guarantee of sufficient demand for the network or for $CP. If adoption does not grow as expected, token utility or value may be significantly impacted.
- Competitive landscape. The decentralised artificial intelligence infrastructure sector is highly competitive and includes decentralised compute networks, model serving platforms, data marketplaces, and well-capitalised centralised providers of inference and compute. Competitors may achieve superior traction, performance, pricing, or distribution. Centralised providers in particular benefit from scale, hardware access, and existing enterprise relationships.
- Commoditisation of inference. The cost of running open-source models has declined rapidly and may continue to decline. If inference becomes sufficiently inexpensive and widely available through other channels, the value of intermediating access to it may be reduced, which could compress network revenue and reduce demand for $CP.
- Incentive programme dependency. Networks in this sector have frequently experienced sharp declines in activity following the conclusion of incentive programmes and airdrop cycles, with usage failing to persist organically. There is no assurance that activity on the Cluster Protocol network will avoid this pattern.
- Execution and delivery risk. Planned milestones may be delayed, changed, or not delivered, which could affect expected utility and ecosystem growth.
- Technological obsolescence. The artificial intelligence and blockchain sectors evolve rapidly. New technologies, changes in market demand, or advances in competing protocols could render the network or $CP less competitive, reducing adoption and utility.
- Unanticipated risks. In addition to the risks outlined above, unforeseen risks may arise, including as unexpected variations or combinations of the risks described.
Compliance Affirmations
Open Protocol Labs Ltd affirms that it operates in compliance with applicable laws and regulations in the jurisdictions in which it conducts its activities, including sanctions, anti-money laundering, and know-your-customer requirements where applicable.
Open Protocol Labs Ltd commits to keeping this disclosure current as material details evolve. This includes, without limitation, the exchange allocations, market maker arrangements, and airdrop recipient list, the details of which will be added as they are finalized.
This disclosure is provided solely for transparency purposes. It does not constitute an inducement to purchase $CP or any other asset, and nothing in it should be relied upon as a promise of future performance.
Forward-looking statements
The information presented in this disclosure is provided for informational purposes only and may not be complete. While every effort is made to ensure the information is accurate and current, no representations or warranties are made regarding it, and any representations, warranties, or covenants in any form to any entity or person are expressly disclaimed. This document contains forward-looking statements regarding future events, milestones, token utility, and project development. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied.