When using our Services and the Site you are exposed to certain risks, which are explained in this Statement.
This Risk Disclosure Statement (the “Statement”) intends to give you information on the potential risks associated with the Digital Assets, which are related to the Services that we provide. The prices of Digital Assets are very volatile, and often materially more volatile than traditional financial instruments (e.g., shares, bonds etc.). The Services carry a high degree of risk and may not be suitable for every person.
Respectively, this Statement provides you with information about the risks associated with the Services, however, it cannot and does not explain and disclose all of the risks and other aspects involved in using the Services and holding, buying, selling or engaging in transactions related to Digital Assets, nor how such risks relate to your personal circumstances, financial standing and tolerance for risk. There may be additional risks that are not foreseen or identified in this section. Therefore, the list of risks prescribed here in the Statement shall not be deemed as exhaustive list:
General Market Risk: The market for Digital Assets is new and uncertain. You should not invest funds that you are not prepared to lose in their entirety. Whether the market for one or more Digital Assets will move up or down, or whether a Digital Asset will lose all or substantially all of its value, is unknown. You should be cautious about holding Digital Assets and are warned that you should pay close attention to your position and holdings, and how you may be impacted by sudden and adverse shifts in trading and other market activities. Investment in Digital Assets involves significant risks and it is possible that you may lose a substantial proportion or all of your investment. Performance of Digital Assets is subject to various factors. You should carefully consider whether you can afford to bear the risks of investing in Digital Assets.
Liquidity Risk: Markets for Digital Assets have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade Digital Assets or products derived from or ancillary to them.
Legal Risk: The legal status of certain Digital Assets may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more Digital Assets constitute property, or assets, or rights of any kind may also seem unclear. You are responsible for knowing and understanding how Digital Assets will be addressed, regulated, and taxed under the Applicable Law.
Enforcement actions: We may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. This may result in you losing access to your Account and may further result in the loss of any Digital Assets stored or held on your Account.
Exchange Risk (Counterparty Risk): These risks include security breaches, risk
of contractual breach, and risk of loss. You should be wary of allowing third parties to hold your property for any reason.
High Price Volatility: The value of Digital Assets is entirely derived by market forces of supply and demand, and they are much more volatile than most of the traditional fiat currencies and commodities like silver and gold. It is common for prices to increase or decrease significantly in a single day. Although this could result in profits, this could also result in huge losses. You should carefully consider whether you can afford to bear the risks of investing in Digital Assets.
Increased Cyber-Attack and Fraud Risk: Digital Assets are often targeted by hackers and criminals who commit fraud. The nature of Digital Assets and distributed ledger technology may lead to an increased risk of cyber-attack.
Account security risk: Unauthorized access by third parties of your login credentials to gain access to your Account, including through carelessness or forgetfulness by you, as the Account holder, or the third-party obtaining control over another device or Account used by you in connection with any enhanced security measures enabled for your Account.
Irreversible Transactions and Self-Custody: Due to the decentralized nature, transfers of Digital Assets may be irreversible, and, therefore, losses due to fraudulent or accidental transactions may not be recoverable. The loss of private keys to your Digital Asset wallet created outside of regulated exchanges may result in losing access to your funds.
Risk of Software Weakness: Because the Services are based on blockchains or other distributed ledgers, any malfunction, breakdown or abandonment of any blockchain may have a material adverse effect on the Services. Moreover, advances in cryptography, or technology could present risks to the Services, by rendering ineffective the cryptographic consensus or other technological component mechanisms that underpins blockchains.
Risk of Mining Attack: Some blockchains are susceptible to mining attacks, including but not limited to double-spend attacks, majority mining power attacks, “selfish-mining” attacks, and rare condition attacks. Any successful attacks present a risk to the services, and the expected proper execution and sequencing of transactions carried out through the Services. You understand and accept that the network of miners will ultimately be in control of the delivery of Digital Assets via the blockchain, and that a majority of miners could agree at any point to make changes, updates, modifications to, or effect a deletion or destruction of the blockchain.
Risks Arising from Taxation: The tax characterization of Digital Assets is uncertain. You must seek your own tax advice in connection with acquisition, storage, transfer and use of any Digital Asset, which may result in adverse tax consequences to you, including, without limitation, withholding taxes, transfer taxes, value added taxes, income taxes and similar taxes, levies, duties or other charges and tax reporting requirements.
Unauthorized Access: You must accept the Terms of Use regarding your care, due diligence and responsibility in handling and storage of the unique log-in credentials to your Account.
Delays in Transfers: All incoming and outgoing transfer of assets are subject to screening by us in line with international regulatory standards. Certain patterns and sizes of transactions will be subject to enhanced scrutiny which could result in delays or rejection of the transfer request. Also, any issues arising from our own systems and that of third parties may also cause a delay in transfer.
Third Party Outages: As with all modern financial services firms, we deliver our Services to you using an array of third-party providers. While the performance of these providers is monitored on a constant basis, an outage at one of the firm’s partners could affect its service to you in the short-term.
System Risk: You acknowledge and understand that we may experience system interruptions or delays due to outages, power loss, telecommunications failure, disasters, cyberattacks, system malfunctions, or other events. Such interruptions or delays may affect our Services to you temporarily.
Third Party Risks: You acknowledge and understand that you may suffer losses incurred from actions or conditions regarding third parties, including those engaged or partnered by us for the provision of our own Services to you, such as liquidity providers, payment service providers, and IT service providers etc., those engaged by yourself for the use of our Services (e.g., the banking services or wallet services you use), as well as those neither engaged by you nor by us. Respectively you acknowledge that there may be additionally associated risks with the usage of a third party’s websites / platforms and their services which may be accessible via the Site, therefore it is your responsibility to carefully familiarize yourself with such before starting to use any of services, content or products of a third party.
Deposit Guarantee Scheme: You acknowledge and understand that although we are registered virtual currency exchange operator and virtual currency wallet operator in Lithuania, we or our account holders are not covered by any government backed compensation scheme or protections offered to investors or other creditors like those authorized or otherwise regulated institutions, such as regulated banks such as the Global Deposit Guarantee Scheme or the Global Investor Compensation Scheme.
Unanticipated Risks: The risks described herein are not nor are they intended to be a comprehensive or exhaustive list of risk factors. You remain responsible for taking care to understand the technology, economic and legal nature of Digital Assets and for carefully managing your exposure in accordance with that understanding and your risk appetite for innovative, volatile and speculative new technologies and Digital Assets.
Foreign Exchange Risk: We do not guarantee the availability of any exchange rate. We do not guarantee that you will be able to buy and/or sell your Digital Asset on our platform at any particular price or time.
Information Risk: Risk that third parties may obtain unauthorized access to information or assets (including your Digital Assets) stored on your behalf. There is a risk of cyber-attacks on the security, integrity or operation of the Digital Assets’ blockchain or other underlying technology. There are risks associated with utilizing an Internet-based system including, but not limited to, the failure of hardware, software, and Internet connections, the risk of malicious software introduction.
Liquidity Slippage Risk: We make proper efforts and works to monitor and maintain liquid order books. Nevertheless, market conditions might create a lack of liquidity that might create a severe devaluation of the asset or a strong slippage on price when creating a market order.
Risk of dissolution of the Company or network: It is possible that, due to any number of reasons, including, but not limited to, the negative adoption of the Services, the failure of commercial relationships, or intellectual property ownership challenges, the Services may no longer be viable to operate and we may dissolve which may result in any Digital Assets stored or held on your Account becoming irrecoverable and/or permanently lost.
Insolvency Risk. Our insolvency due to the failure or our business or otherwise, or any default by us may lead to you not being able to recover all the Digital Assets / Fiat Currency transferred.
The above list does not identify risks that may be additionally associated with the usage of a third party’s services accessible via the Site, therefore it is your responsibility to carefully familiarize yourself with such before starting to use any of services, content or products of a third party.
Please read this Statement carefully and also kindly note that the above listed risks are only indicative and not exhaustive.