Updated May 17, 2022
Please consider the following risk factors (many of whichare specific and inherent to cryptographic tokens) before using any part of ourWallet/website/platform and before purchasing and/or trading User Tokencryptographic tokens or any other cryptographic token which we (or anythird-party service provider accessed through our platform) may offer throughour Wallet/website/platform from time to time (“tokens”). The value of thetokens and your ability to access and transfer the tokens could be materiallyand adversely affected if any of these risk factors materialize. As a result,when you purchase tokens, you expose yourself to considerable risk andpotential financial losses.
Please also note that this Risk Statement is not exhaustive.It would be best to conduct further research (and seek professional advice) tocarefully determine whether purchasing and/or trading tokens is suitable foryour particular financial situation and risk tolerance.
SUBJECT TO ANY PROVISION TO THE CONTRARY SET OUT IN OUREULA, 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 FUNDSTHAT YOU CAN NOT AFFORD TO LOSE TO PURCHASE TOKENS.
The price of tokens can be subject to dramatic fluctuationsand high volatility due to the rapid shifts in offer and demand resulting fromevents such as but not limited to
good or bad publicity,
changes in the financial technology industry,
general economic and/or political conditions,
degree of adoption,
degree of institutional support,
degree of government support,
events affecting large service providers, includingexchanges.
AS A RESULT OF PRICE VOLATILITY, YOUR TOKENS MAY LOSE ALLVALUE AND BECOME WORTHLESS. WE SHALL NOT BE RESPONSIBLE FOR ANY LOSS INCURREDBY YOU AS A RESULT OF THE INHERENT PRICE VOLATILITY OF TOKENS.
Tokens are stored on cryptographic wallets (“Wallets”). Aprivate key (for example, a passphrase) is usually necessary to access,control, and/or dispose of tokens stored in your Wallet. Losing access to theprivate key(s) associated with your Wallet may permanently lose your ability toaccess and dispose of your tokens.
You are solely responsible for implementing all reasonableand appropriate measures for securing access to your private key(s) and Wallet.
WE DO NOT HOLD COPIES OF YOUR PRIVATE KEY(S). WE SHALL NOTBE RESPONSIBLE FOR ANY LOSS RESULTING FROM YOUR INABILITY TO ACCESS YOUR WALLETAND/OR PRIVATE KEYS.
Tokens are recorded on distributed ledgers (typically sharedacross networks of users), which are governed by, subject to, and distinguishedbased 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 theprotocols (and of any consensus mechanism, where applicable) on which thetokens are based could severely affect the price of the tokens as well as yourability to dispose of the tokens (particularly where the protocol relies onsubstantial participation and wide networks to operate correctly).
3.2 Mining attacks
Some protocols integrate consensus-based mechanisms forvalidating transfers (“Consensus Protocols”). Therefore, consensus protocolsare susceptible to attacks at validation, where the network approves the tokentransactions. This may affect the accuracy of transactions occurring on theprotocol and in your tokens being misappropriated (for example, through what istypically referred to as double-spending attacks).
3.3 Hacking and security weaknesses
Tokens may be subject to expropriation and/or theft. Badactors (including hackers, groups, and organizations) may attempt to interferewith the protocols or the tokens in a variety of ways, including, but notlimited to, malware attacks, denial of service attacks, consensus-basedattacks, Sybil attacks, smurfing and spoofing.
Furthermore, some protocols are based on open-sourcesoftware and, as a result, are subject to the risk of weakness being introducedto the protocols (either willingly or accidentally) at the development stage.Bad actors may exploit any such flaw to misappropriate your tokens or otherwiseaffect the protocol’s functionality and your ability to dispose of your tokens.
WE DO NOT HAVE CONTROL OVER THE PROTOCOLS. AS SUCH, WE SHALLNOT BE RESPONSIBLE FOR ANY LOSS ARISING OUT OF OR IN CONNECTION WITH THEPROTOCOLS.
LAWS AND REGULATIONS
The legal and/or regulatory framework surrounding tokens anddistributed ledger technology is uncertain, not harmonized, and unsettled inmany jurisdictions.
It is difficult to predict what framework will becomeapplicable to tokens in the near future and how the implementation of dedicatedlegal and/or regulatory frameworks will affect the price of tokens. A newlyintroduced legal and regulatory framework may interfere with or otherwise limityour ability to hold or dispose of your tokens, which could result in afinancial loss on your part.
WE ARE NOT RESPONSIBLE FOR ANY LOSS WHICH YOU MAY SUFFER ASA RESULT OF ANY NEWLY INTRODUCED LEGAL AND/OR REGULATORY FRAMEWORK.
The tax characterization of tokens is complex and largelyuncertain. The uncertainty in the tax treatment of tokens may expose you tounforeseen future tax consequences associated with purchasing, owning, selling,or otherwise using tokens. You should seek tax advice to understand what taxobligations apply to you when purchasing, holding, transferring and utilizingtokens. Failure to comply with your tax obligations could result in severefines and even jail time.
WE ARE NOT RESPONSIBLE FOR ANY LOSS OR OTHER FORM OFLIABILITY ARISING OUT OF OR IN CONNECTION WITH YOUR FAILURE TO COMPLY WITH ANYTAX LIABILITY THAT IS OR WILL BE APPLICABLE TO YOU.
In addition to the risks included in this document, thereare other risks associated with your purchase, holding, trading, and use oftokens, some of which we cannot anticipate. Such risks may further materializeas unanticipated variations or combinations of the risks discussed.
THIS RISK STATEMENT IS NOT EXHAUSTIVE AND SHALL NOT BE TAKENTO ENCOMPASS ALL RISKS INVOLVED IN THE PURCHASE, HOLDING, TRADING, AND USE OFTOKENS. SUBJECT TO THE TERMS OF THE EULA, WE SHALL NOT BE RESPONSIBLE OR LIABLEFOR ANY LOSS SUFFERED BY YOU AS A RESULT OF UNANTICIPATED RISKS.