Risk Disclaimer
Updated May 17, 2022

Please consider the following risk factors (many of which are specific and inherent to cryptographic tokens) before using any part of our Wallet/website/platform and before purchasing and/or trading User Token cryptographic tokens or any other cryptographic token which we (or any third-party service provider accessed through our platform) may offer through our Wallet/website/platform from time to time (“tokens”). The value of the tokens and your ability to access and transfer the tokens could be materially and adversely affected if any of these risk factors materialize. As a result, when you purchase tokens, you expose yourself to considerable risk and potential financial losses.

Please also note that this Risk Statement is not exhaustive. It would be best to conduct further research (and seek professional advice) to carefully determine whether purchasing and/or trading tokens is suitable for your particular financial situation and risk tolerance.

SUBJECT TO ANY PROVISION TO THE CONTRARY SET OUT IN OUR EULA, WE SHALL NOT BE LIABLE FOR ANY LOSS INCURRED BY YOU RESULTING FROM YOUR ACCESS TO OUR PLATFORM OR YOUR PURCHASE, TRANSFER, OR USE OF TOKENS.

TOKENS ARE HIGH-RISK ASSETS, AND YOU SHOULD NEVER USE FUNDS THAT YOU CAN NOT AFFORD TO LOSE TO PURCHASE TOKENS.

  1. PRICE VOLATILITY

The price of tokens can be subject to dramatic fluctuations and high volatility due to the rapid shifts in offer and demand resulting from events such as but not limited to

  1. good or bad publicity,
  2. changes in the financial technology industry,
  3. technological advancement,
  4. market trends,
  5. general economic and/or political conditions,
  6. degree of adoption,
  7. degree of institutional support,
  8. regulatory measures,
  9. degree of government support,
  10. market dynamics,
  11. trading activities,
  12. hacking, and
  13. events affecting large service providers, including exchanges.

AS A RESULT OF PRICE VOLATILITY, YOUR TOKENS MAY LOSE ALL VALUE AND BECOME WORTHLESS. WE SHALL NOT BE RESPONSIBLE FOR ANY LOSS INCURRED BY YOU AS A RESULT OF THE INHERENT PRICE VOLATILITY OF TOKENS.

  1. CRYPTOGRAPHIC WALLETS

Tokens are stored on cryptographic wallets (“Wallets”). A private key (for example, a passphrase) is usually necessary to access, control, and/or dispose of tokens stored in your Wallet. Losing access to the private key(s) associated with your Wallet may permanently lose your ability to access and dispose of your tokens.

You are solely responsible for implementing all reasonable and appropriate measures for securing access to your private key(s) and Wallet.

WE DO NOT HOLD COPIES OF YOUR PRIVATE KEY(S). WE SHALL NOT BE RESPONSIBLE FOR ANY LOSS RESULTING FROM YOUR INABILITY TO ACCESS YOUR WALLET AND/OR PRIVATE KEYS.

  1. PROTOCOLS

Tokens are recorded on distributed ledgers (typically shared across networks of users), which are governed by, subject to, and distinguished based on a particular set of rules known as protocols.

3.1 Malfunction, breakdown, and/or abandonment of protocols

Any malfunction, breakdown, and/or abandonment of the protocols (and of any consensus mechanism, where applicable) on which the tokens are based could severely affect the price of the tokens as well as your ability to dispose of the tokens (particularly where the protocol relies on substantial participation and wide networks to operate correctly).

3.2 Mining attacks

Some protocols integrate consensus-based mechanisms for validating transfers (“Consensus Protocols”). Therefore, consensus protocols are susceptible to attacks at validation, where the network approves the token transactions. This may affect the accuracy of transactions occurring on the protocol and in your tokens being misappropriated (for example, through what is typically referred to as double-spending attacks).

3.3 Hacking and security weaknesses

Tokens may be subject to expropriation and/or theft. Bad actors (including hackers, groups, and organizations) may attempt to interfere with the protocols or the tokens in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing.

Furthermore, some protocols are based on open-source software and, as a result, are subject to the risk of weakness being introduced to the protocols (either willingly or accidentally) at the development stage. Bad actors may exploit any such flaw to misappropriate your tokens or otherwise affect the protocol’s functionality and your ability to dispose of your tokens.

WE DO NOT HAVE CONTROL OVER THE PROTOCOLS. AS SUCH, WE SHALL NOT BE RESPONSIBLE FOR ANY LOSS ARISING OUT OF OR IN CONNECTION WITH THE PROTOCOLS.

  1. LAWS AND REGULATIONS

The legal and/or regulatory framework surrounding tokens and distributed ledger technology is uncertain, not harmonized, and unsettled in many jurisdictions.

It is difficult to predict what framework will become applicable to tokens in the near future and how the implementation of dedicated legal and/or regulatory frameworks will affect the price of tokens. A newly introduced legal and regulatory framework may interfere with or otherwise limit your ability to hold or dispose of your tokens, which could result in a financial loss on your part.

WE ARE NOT RESPONSIBLE FOR ANY LOSS WHICH YOU MAY SUFFER AS A RESULT OF ANY NEWLY INTRODUCED LEGAL AND/OR REGULATORY FRAMEWORK.

  1. TAXATION

The tax characterization of tokens is complex and largely uncertain. The uncertainty in the tax treatment of tokens may expose you to unforeseen future tax consequences associated with purchasing, owning, selling, or otherwise using tokens. You should seek tax advice to understand what tax obligations apply to you when purchasing, holding, transferring and utilizing tokens. Failure to comply with your tax obligations could result in severe fines and even jail time.

WE ARE NOT RESPONSIBLE FOR ANY LOSS OR OTHER FORM OF LIABILITY ARISING OUT OF OR IN CONNECTION WITH YOUR FAILURE TO COMPLY WITH ANY TAX LIABILITY THAT IS OR WILL BE APPLICABLE TO YOU.

  1. UNANTICIPATED RISKS

In addition to the risks included in this document, there are other risks associated with your purchase, holding, trading, and use of tokens, some of which we cannot anticipate. Such risks may further materialize as unanticipated variations or combinations of the risks discussed.

THIS RISK STATEMENT IS NOT EXHAUSTIVE AND SHALL NOT BE TAKEN TO ENCOMPASS ALL RISKS INVOLVED IN THE PURCHASE, HOLDING, TRADING, AND USE OF TOKENS. SUBJECT TO THE TERMS OF THE EULA, WE SHALL NOT BE RESPONSIBLE OR LIABLE FOR ANY LOSS SUFFERED BY YOU AS A RESULT OF UNANTICIPATED RISKS.