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Understanding the Risks Associated with Crypto-Assets

Important: Crypto-assets are risky. Prices may fall sharply, and you could lose the entire amount invested. Never invest more than you can afford to lose in full.

This document explains the main risks you should be aware of; however, it does not cover all possible risks associated with the use or holding of crypto-assets, nor does it necessarily address how such risks may specifically apply to your personal financial situation, objectives, or circumstances. It is your responsibility to decide whether crypto-assets are suitable for you. If you are unsure, seek advice from a financial adviser before investing.

Price and Market Risks

  • Prices are highly volatile: Crypto-asset prices may rise or fall by 20%, 50%, or even more within a single day, sometimes within a matter of hours or minutes. Unlike stock markets, which operate during specified trading hours, crypto-asset markets operate 24 hours a day, 7 days a week, meaning that significant price movements may occur overnight or at times when you are unable to monitor the market.

  • Value is not backed by assets or government guarantees: Unlike funds held in a bank account (which benefit from government-backed deposit protection schemes and other depositor protection mechanisms) or shares in companies (which represent an ownership interest in an operating business), most crypto-assets are not backed by tangible assets or guaranteed by any public authority. Their value is determined solely by supply and demand at a given point in time. News reports, social media posts, or even rumours may have a significant and rapid impact on market value.

Technology Risks

  • The technology is still relatively new: Blockchain technology is relatively new and is still being developed and tested. Software bugs, security vulnerabilities, or technical issues that have not yet been identified may exist.

  • Network attacks may occur: If malicious actors gain control of a sufficient portion of the computing power within a blockchain network, they may attempt to manipulate its operation. In addition, networks may become overloaded due to a high volume of transactions, which may result in processing delays and increased transaction fees.

Regulatory and Legal Risks

  • Regulations are evolving: Governments and regulatory authorities around the world continue to develop and adapt the regulatory framework for crypto-assets. New regulations may unexpectedly prohibit certain types of crypto-assets, restrict the ways in which they may be used, or require the discontinuation of certain services. Such changes may make it more difficult or even impossible to access or sell your crypto-assets.

  • You are responsible for your tax obligations: Any gains (or losses) arising from trading or holding crypto-assets may be subject to taxation in accordance with the tax laws applicable in your country. It is your responsibility to determine whether a tax liability exists, to report it correctly, and to settle it within the prescribed time limits. The Company does not provide tax advice; therefore, consultation with a qualified tax adviser is recommended.

Investment Risks

  • Investment complexity: Crypto-assets are complex and may be difficult to understand. Before investing, you should ensure that you understand the nature of the product you are purchasing and assess whether such an investment is appropriate in light of your financial situation, level of knowledge and experience, and your ability to bear risk.

Service-Related Risks

  • Potential technical issues: The Company's platform may from time to time be unavailable due to scheduled maintenance, software bugs, or other technical difficulties, which may temporarily prevent you from accessing your account or executing transactions at the desired time.

What You Agree to by Using the Service

By using our service, you confirm that:

  • you have read and understood the risks described above;
  • you make your own investment decisions (the Company does not provide investment advice);
  • you will educate yourself and conduct your own research before purchasing any crypto-assets;
  • you will take reasonable measures to protect the security of your account and comply with all applicable laws and regulations, including the proper fulfilment of your tax obligations;
  • you will notify the Company without undue delay if you suspect or become aware of any unauthorised access to your account.

If you are uncertain about any of the above, please consult a qualified financial adviser before investing.