AI Ethics Statement – SCANDIC COIN

Introduction & Objectives

SCANDIC COIN uses Artificial Intelligence (AI) and algorithmic systems in various areas: predictive maintenance and outage forecasting for servers, dynamic load balancing, energy and cooling management, security analytics (for example: anomaly detection, DDoS mitigation), customer support (chatbots), and optimization of supply chains for hardware and energy. As part of the SCANDIC GROUP, we commit to using AI responsibly, transparently, and in accordance with fundamental rights. This AI Ethics Statement defines the principles, processes, and control mechanisms for the development, procurement, operation, and use of AI at SCANDIC COIN.

SCANDIC ASSETS FZCO
Dubai Silicon Oasis DDP
Building A1/A2
Dubai — 342001
United Arab Emirates
Phone: +97 14 3465-949
Email: Info@ScandicAssets.dev
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Represented by:
SCANDIC TRUST GROUP LLC
(hereinafter referred to as “SCANDIC GROUP”)
IQ Business Centre
Bolsunovska Street 13–15
Kyiv — 01014, Ukraine
Phone: +38 09 71 880-110
Email: Info@ScandicTrust.com
Commercial Register: View extract

In cooperation with:
LEGIER Beteiligungs mbH
Kurfürstendamm 14
10719 Berlin
Federal Republic of Germany
Commercial Register: HRB 57837
Register Court: Berlin-Charlottenburg
VAT ID: DE 413445833
Phone: +49 (0) 30 99211-3469
Email: Office@LegierGroup.com
German Commercial Register: View entry

Legal Notice:
SCANDIC ASSETS FZCO and LEGIER Beteiligungs mbH act as non-operational service providers. All operational activities of SCANDIC DATA are carried out by SCANDIC TRUST GROUP LLC. SCANDIC ASSETS FZCO is the holding company and owner of the brands; operational and all managerial activities are performed by SCANDIC TRUST GROUP LLC.

This statement is aligned with the forthcoming EU AI Act, the GDPR, the PDPL, sector-specific cloud and telecommunications rules, and international best practices. The objective is to foster innovation while keeping risks manageable, thereby safeguarding the trust of customers, employees, and society.

1. Core Values & Guiding Principles

  • Human-Centricity: AI exists to support people. Applications must respect the dignity and autonomy of customers, employees, and partners. Decisions with significant impact (e.g., termination of contracts due to security incidents) are made by humans.
  • Legality: All AI systems comply with applicable laws (GDPR, PDPL, EU AI Act, telecommunications and energy industry law). Prohibited AI practices (e.g., biometric mass surveillance) are excluded.
  • Responsibility & Accountability: Responsible owners are assigned for each AI system. Decisions are traceable, contestable, and subject to human review. Documentation and audit trails enable complete traceability.
  • Proportionality: The use of AI is proportionate to purpose and risk. High-risk applications (e.g., automatic network shutdown upon security alarm) are subject to stringent control mechanisms.
  • Transparency: Users are informed when AI is used. The principles and functionality of systems are explained in a comprehensible manner.
  • Fairness & Inclusion: AI must not discriminate based on origin, gender, age, disability, or other sensitive characteristics. Bias is actively identified and minimized.
  • Security & Resilience: AI systems are hardened against manipulation and malfunction. Security incidents are proactively reported and analyzed.
  • Sustainability: The ecological footprint of our AI infrastructure is taken into account. Energy-efficient models, resource-saving hardware, and sustainable data center operations are standard.

2. Governance & Responsibilities

A group-level AI Ethics Board oversees all AI initiatives. It consists of experts from legal, data protection, IT security, infrastructure, operations, and human resources. This body reviews new AI projects, assesses risks, and approves high-risk applications. Internal policies govern the use of AI and integrate with existing compliance, data protection, and supply chain policies. A responsible owner is designated for each project, managing development, operations, and monitoring (RACI model). The ESG Committee of the SCANDIC GROUP ensures that AI topics are integrated into corporate strategy and reports to management and the advisory board.

4. Data Ethics & Data Protection

Responsible data handling is the foundation of our AI strategy. We ensure that training and production data are:

  • collected lawfully,
  • in line with the principle of data minimization,
  • free from discriminatory biases,
  • stored and processed in a secure environment,
  • used only with explicit consent where sensitive data (for example, health information) is involved.

We also document data provenance to trace which sources have contributed to a model. When synthetic data or generative models are used, we label outputs as AI-generated.

5. Transparency & Explainability

We clearly label AI interactions (e.g., chatbots, recommendation systems). Users receive understandable information about how a system functions, which key factors influence a decision, and how to request human review if needed. For decisions concerning security measures (e.g., automatic blocking of an IP address), we disclose the relevant criteria without revealing trade secrets. Decision processes are logged to enable internal or external audits.

6. Fairness, Bias & Inclusion

Our algorithms are systematically tested for discrimination. This includes statistical analyses of training data, diversified test groups, and regular reviews during operations. We use methods to detect disparate treatment (e.g., disparate impact analyses) and adjust models accordingly. Particular attention is paid to vulnerable groups; systems must not exploit cognitive weaknesses. In capacity management and pricing, we ensure that customers are not arbitrarily disadvantaged.

7. Human-in-the-Loop & Critical Decisions

Automated systems must not replace human expertise in safety- or business-critical decisions. In emergency measures, contract terminations due to violations, or significant configuration changes, AI-supported recommendations are always reviewed by qualified personnel. An escalation and override mechanism (“human-in-the-loop”) ensures that humans retain ultimate control.

8. Security & Robustness

All AI systems are hardened against adversarial attacks, prompt injection, data poisoning, and other manipulation attempts. We apply defense-in-depth strategies: access restrictions, strong authentication, encryption, continuous monitoring, and red-team testing. Security incidents are promptly investigated, documented, and remediated. Incident response plans define reporting chains and countermeasures. Models are regularly updated to address known vulnerabilities.

9. Sustainability

The development and operation of AI consumes resources. SCANDIC COIN relies on energy-efficient model architectures, resource-friendly hardware (e.g., GPUs/TPUs with high performance per watt), and a scalable infrastructure. Our data centers are powered by renewable energy and optimize workloads to minimize electricity consumption and cooling requirements. Model updates and retraining are planned to avoid unnecessary compute cycles; legacy hardware is recycled or disposed of properly.

10. AI in Token Operations

SCANDIC COIN uses AI in a targeted manner to make utility-token operations more efficient, secure, and sustainable:

  • Predictive Maintenance: Machine-learning models analyze sensor and operational data from servers, UPS systems, cooling units, and network components to forecast failure probabilities. Maintenance is scheduled before disruptions occur.
  • Energy and Cooling Management: AI algorithms optimize power flow, load distribution across racks, and the use of cooling systems to keep PUE low.
  • Security Analytics: Anomaly detection models identify unusual access patterns, DDoS signatures, data exfiltration, or insider threats. Findings are fed into our SIEM/SOAR platform.
  • Capacity Planning: AI forecasts demand for compute and storage resources so that we can adapt hardware procurement, virtualization, and network capacity in good time.
  • Chatbots and Support: Intelligent assistants help with standard inquiries, ticket routing, and technical documentation. For more complex requests, handover to human staff occurs.

In all use cases, the ethical principles outlined above apply.

11. Training, Awareness & Culture

SCANDIC COIN fosters a corporate culture in which employees question AI decisions and handle technology responsibly. Training programs convey the basics of AI ethics, data protection, security awareness, data quality, and bias mitigation. Employees are encouraged to report irregularities and participate in the continuous improvement process. Leadership ensures that ethical considerations are incorporated at all phases of a project (design, development, deployment, operations).

12. Monitoring, Audit & Continuous Improvement

Our AI systems are continuously monitored. Metrics such as accuracy, fairness, false positive rates, energy consumption, CO₂ emissions, and user satisfaction are included in regular reports. Internal and external audits verify adherence to the AI policy. Insights from audits, user feedback, and technical analyses are used to adjust models and processes. This statement is updated at least annually or whenever significant changes occur.