Messaging App Telegram has said it will offer investors a refund, if its ICO fails, but said it can't guarantee it would have the money to issue the refund, Business Insider reported.
"There can be no assurance that the Issuer or Telegram will have sufficient funds to make payments of any Termination Amount (as defined in the Purchase Agreements) as and when required under the terms of the Purchase Agreements. Neither Telegram nor the Issuer has any fiduciary or other obligation to use the funds generated by the token sale for the benefit of the purchasers," the messaging app said in one of the documents sent to potential investors.
Telegram raised $850 million in a private sale for its ICO earlier this year and is looking to raise as much as $1.7 billion in a second token sale at the end of February.
The company plans to use the funds raised from the ICO to build a protocol to rival the Ethereum platform. The so-called TON (Telegram Open Network) will host crypto applications. Investors who participate in the fundraise will get so-called Grams in December following a lock-up period.
At more than $2 billion, Telegram's ICO would be the biggest ever.