Cryptoasset Risk Disclosure

1) Overview

This Risk Disclosure describes material risks associated with cryptoassets (including cryptocurrencies, tokens, stablecoins, and other digital assets) and services that may involve them (e.g., buying/selling, transfers, custody, staking, or other on-chain interactions).

Cryptoasset markets are evolving and may be subject to abrupt changes in liquidity, price, technology, and regulation. You should not engage with cryptoassets unless you fully understand the risks and can afford to lose the funds involved.

2) No Investment Advice

Any content, communications, analytics, market data, or materials we provide are for general information only and do not constitute investment advice, financial advice, trading advice, legal advice, tax advice, or any other professional advice. Nothing we provide is a solicitation, recommendation, or endorsement to buy, sell, hold, or otherwise transact in any cryptoasset.

You are solely responsible for determining whether any transaction is suitable for you, including assessing your financial situation, objectives, risk tolerance, experience, and understanding of the product.

3) Risk of Total Loss

You may lose all of the funds you use to acquire cryptoassets. Cryptoassets may become illiquid, lose value rapidly, be delisted, be subject to protocol failures, or become unavailable due to regulatory action.

• Only use funds you can afford to lose.
• Past performance is not indicative of future results.
• Returns are not guaranteed; losses can exceed expectations.

4) Volatility & Market Risk

Cryptoasset prices can change rapidly and unpredictably. Volatility may be driven by market sentiment, macroeconomic conditions, hacks/exploits, protocol upgrades, outages, governance decisions, regulatory announcements, or large trades.

Stop orders and other risk controls may not work as intended during fast markets and may execute at materially different prices than expected, or not execute at all.

5) Liquidity, Slippage & Pricing

Some cryptoassets have limited liquidity. Low liquidity can increase spreads, slippage, and price impact, especially during market stress. This may cause execution at unfavorable prices or prevent you from entering or exiting positions when you want.

Prices may vary between venues, and reference prices may be delayed or inaccurate. Quoted prices may not reflect the price at which your order ultimately executes.

6) Leverage & Margin (if applicable)

If you use leverage or margin (including leveraged tokens or derivatives), your gains and losses are magnified. Leverage can lead to rapid liquidation and total loss of collateral, including due to sudden price moves, funding rate changes, increased margin requirements, or platform risk controls.

• You may be liquidated without additional notice depending on the product.
• Fees and funding costs can materially affect outcomes.
• Some leveraged products may behave unexpectedly in volatile markets.

7) Technology & Smart-Contract Risk

Cryptoassets rely on complex software. Smart contracts and on-chain protocols may contain vulnerabilities, bugs, design flaws, or economic exploits. Attacks can result in partial or total loss of funds, halted transfers, or permanent impairment of a token or protocol.

Audits do not guarantee safety. Even widely used protocols can fail or be exploited.

8) Custody, Keys & Account Security

Cryptoasset transactions are often irreversible. If you send assets to the wrong address, wrong network, or incompatible wallet, you may not be able to recover them.

You are responsible for securing your devices, credentials, and (where applicable) private keys/seed phrases. Loss of private keys or compromise of credentials may result in irreversible loss of your cryptoassets.

• Use strong passwords and multi-factor authentication (MFA) where available.
• Beware of phishing, malware, SIM swap attacks, and social engineering.
• Do not share seed phrases or private keys with anyone.

9) Counterparty & Platform Risk

If you use a third-party platform, exchange, custodian, or service provider, you are exposed to that party’s operational, cybersecurity, and insolvency risks. Service outages, hacking incidents, internal controls failures, or insolvency events may impair access to your assets.

Account access may be restricted due to compliance obligations, fraud prevention, investigations, or technical reasons. Withdrawals may be delayed or paused in extraordinary circumstances.

10) Stablecoin-Specific Risks

Stablecoins aim to maintain a target value (e.g., 1.00 in a fiat currency), but they may de-peg or lose value. Risks can include reserve/collateral issues, redemption constraints, governance failures, smart-contract vulnerabilities, market stress, or regulatory action.

• Redemptions may be limited, delayed, or suspended.
• Collateral quality or custody of reserves may be uncertain.
• Algorithmic mechanisms can fail under stress.

11) Blockchain Network Risks

Blockchain networks may experience congestion, delayed confirmations, reorgs, forks, validator failures, or changes to consensus rules. Fees may spike unexpectedly. These events may lead to delays, failed transactions, or unexpected outcomes.

Protocol upgrades or forks can create new assets, render old assets unsupported, or cause service disruptions. We may support some forks and not others, depending on technical and operational considerations.

12) Regulatory & Legal Risks

Laws and regulations relating to cryptoassets vary by jurisdiction and can change rapidly. Regulatory developments may affect the legality, availability, taxation, reporting requirements, and treatment of cryptoassets or services. Some cryptoassets may be deemed securities or otherwise regulated instruments in certain jurisdictions.

You are responsible for understanding and complying with the laws applicable to you, including sanctions, AML/CFT rules, and local licensing restrictions.

13) Tax Considerations

Cryptoasset transactions may have tax consequences, including capital gains/losses, income tax, VAT/GST, withholding obligations, and reporting requirements. Tax treatment can differ depending on the asset, transaction type, and jurisdiction.

You should seek independent tax advice. We do not provide tax advice and are not responsible for your tax obligations.

14) Suitability & Responsibility

You should carefully consider whether engaging with cryptoassets is appropriate for you. Consider your financial situation, investment horizon, knowledge, and ability to bear losses.

• Do not invest borrowed money you cannot repay.
• Diversification does not guarantee profits or prevent losses.
• Consider using independent professional advice.

15) Acknowledgement

By accessing or using our cryptoasset-related services, you acknowledge that you have read, understood, and accepted the risks described in this Risk Disclosure. You also acknowledge that this disclosure may not describe all risks and that additional risks may exist.

This Risk Disclosure is provided for informational purposes only and may be updated from time to time. It is not intended to create any contractual rights and does not modify our Terms unless expressly stated.

16) Contact

If you have questions about this Risk Disclosure, contact us at [email protected].