RISKS OF CRYPTOCURRENCIES
Buying and selling cryptocurrencies and/or NFT (Non Fungible Tokens) is not appropriate for everyone. As such, you should not engage with these products if you do not have the necessary knowledge or if you cannot bear the loss of the entire amount spent on cryptocurrencies. You should be fully aware of, and understand, the specific characteristics and risks in relation to these products, as well as the fees and costs entailed. Some of the key risks associated with cryptocurrencies are highlighted below: The values of NFT’S and cryptocurrencies are subject to significant price volatility, and you may experience a significant or complete loss of value over a short period of time compared to what you purchased using fiat currency. Transactions in cryptocurrencies are generally irreversible and losses due to fraudulent or accidental transactions may not be recoverable Legislative and regulatory changes or actions at state, country or international level may affect the use, transfer, exchange, and value of cryptocurrencies, for example some cryptocurrencies or cryptocurrency activities may become illegal and/or restricted in certain territories or as prescribed by applicable law, for which we are not in control.
1. CRYPTO SERVICES AND NFT'S INTRODUCTION
Cryptocurrencies and NFT’s are still unregulated by governments and central banks. Thus, there is no authority that can take corrective measures to protect the value of cryptocurrencies or issue more cryptocurrencies in events of crises. Cryptocurrencies are susceptible to fraud, cyberattacks, wallet hacking, technical or human errors. Although the blockchain is impossible and fruitless to hack because it is a public ledger available on P2P node network, individuals CAN leave their wallet open, passwords, seed words for hackers to gain access to their ewallets and or Card Account. Please keep vigilant over these security measures herein. There is no guarantee that persons or businesses that currently accept cryptocurrencies as payment will continue to do so in the future. Buying and selling NFT’S and cryptocurrencies may result in future tax liability, and you should comply with such tax obligations. The cessation of buying and selling specific cryptocurrencies may happen at any time, for any reason, including suspension, discontinuations, forks, or any other event. Financing costs and spread should be considered before buying and/or selling cryptocurrency.
This Crypto Services General Risk Disclosure provides you with information about the risks associated with the purchase or selling of cryptocurrencies.
This page does not explain all the risks involved in cryptocurrencies or how such risks relate to your own personal circumstances. We have set out below some of the common key risks we believe are associated with cryptocurrencies but please note that we do not provide you with any advice. Any statements made are for information purposes only and you should not seek reliance upon them. If you are in any doubt about the risks involved with your account, you should seek professional advice.
You acknowledge and agree that you shall access and use the services provided at your own risk. The risk of loss in cryptocurrency purchases and sales can be substantial and you may lose all value. It is important that you fully understand the risks involved, that you have adequate financial resources to bear such risks and that you monitor your positions carefully.
2. OPERATIONAL RISKS
Operational risks are inherent in every transaction. You acknowledge that 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, the risk that third parties may obtain unauthorized access to information and/or assets (including your cryptocurrencies) stored on your behalf, cyber-attack, the cryptocurrency network failure (such as blockchain), computer viruses, communication failures, disruptions, errors, distortions or delays you may experience when using the system, howsoever caused, spyware, scareware, Trojan horses, worms or other malware that may affect your computer or other equipment, or any phishing, spoofing or other attack.
We make no representation or warranty of any kind, express or implied, statutory, or otherwise nor do we accept or bear any liability whatsoever in relation to our operational processes.
3. LIQUIDITY RISK
Illiquid markets have potential increased risk of loss because of high price volatility, and in such market conditions, it may be difficult or impossible to execute a buy or sell transaction quickly at a reasonable price. There is no guarantee that the markets for any cryptocurrency will be active and liquid or permit you to execute a buy or sell transaction when desired or at favorable prices.
4. PAST PERFORMANCE
You should not assume that past performance bears any relation to potential future performance. There can be no certainty concerning the future performance of the cryptocurrency market or trades you make. No representations can be made as to future performance.
5. TAX RISKS
You should ensure that you understand the potential tax implications of buying and/or selling NFT’S and cryptocurrencies as any related profits may be or become subject to tax. We do not represent or warrant that no tax or stamp duty (other than trading duty) will be payable. You will be responsible for all taxes and stamp duty in respect of your actions. We do not offer any tax advice or tax recommendations, and you are responsible for your own tax affairs. If you are in any doubt as to the tax treatment or liabilities of the cryptocurrencies through our services, you should seek independent advice.
6. FEES AND CHARGES
Please be aware of our fees and charges that apply to you, as they may affect your profitability. Our fees and charges are set out on our website, in your membership agreement, and in the contract signed when initiating a buy or sell transaction.
7. NO ADVICE
We do not provide advice on cryptocurrencies. Any decision to use our products or services is made by you. You are responsible for managing your legal and tax affairs, including making any regulatory filings and payments and complying with applicable laws and regulations.