Risk Warning Statement
The following Risk Warning Statement gives Users information on cryptocurrencies and digital assets. This includes buying, selling, and exchanging these assets along with other aspects of the industry. The Users can use CryptoWallet ’s Products and Services to buy, sell, and exchange digital assets, and these activities come with risks attached. The prices of cryptocurrencies and related assets are very volatile, often significantly more so than most stocks in the stock market. Traders accustomed to the stock market should be aware of the heightened risk involved in trading cryptocurrencies, and researching and practicing good risk management practices for crypto trading is typically seen as a sound idea. CryptoWallet Users may consult a professional financial advisor at their own volition if they are uncertain about any aspect of trading. This statement will not contain all possible risks that traders may encounter in the markets. Users should research risks and underlying technologies before trading in order to have an informed position when using CryptoWallet. Common trader errors in the crypto markets include poor risk management and insufficient capital to cover losses. CryptoWallet is not responsible for losses or damages incurred when using our Services or any other Product. This includes losses or damages when buying, selling, or trading digital assets. Users are responsible for their own trading decisions, and CryptoWalletis not a financial advisor and should not be viewed as such, nor should any CryptoWallet literature or communications be considered as financial advice. The following is a list of some of the risks involved in trading digital assets:
1. MARKET CONDITIONS
Digital assets are volatile and subject to significant price changes. It’s not uncommon to see prices for any given asset to move by over 20% in a single day. Digital assets are usually secured by blockchain technology, and it’s often impossible to reverse or cancel a transaction made on a blockchain network. Traders losing funds due to fraudulent or erroneous transactions may not be able to recover those losses. Blockchain networks can fall under attack from bad actors, impacting the price of their supported assets. Liquidity can also see sudden changes, and trading may be suddenly halted for digital assets for a wide number of reasons. Traders could potentially suffer losses due to incidents like system or software failures.
2. LEGAL CONSENT
The legal and regulatory status of digital assets varies in different countries and jurisdictions. In some cases, state securities regulators have indicated that fundraising events such as initial coin offerings (ICOs) may be considered to be events in which the digital assets being sold constitute a security. This may expose traders to securities laws and regulations, and the sale of unlicensed securities may be found to be illegal in some areas. It’s possible that regulations introduced in the future may expose ICO customers to retroactive legal action against them. Users are responsible for understanding the regulatory climate surrounding digital assets and how that climate may impact them as individuals.
Users should research how cryptocurrency transactions are taxed in their relevant jurisdictions. Crypto is often viewed as property and subject to capital gains tax in certain countries and locations, but different jurisdictions have different tax guidelines and definitions when it comes to crypto and digital assets as a whole. Users are responsible for their own taxes.
4. THIRD PARTIES
CryptoWallet works and is partnered with various third parties including payment providers, digital identification verifiers, financial institutions, regulators, and other parties. Any losses incurred from actions or conditions regarding these parties are not our responsibility.
5. RISK STATEMENT AWARENESS
Due to legal, regulatory, or operational reasons, we may need to alter this risk statement over time. Users should check the risk statement from time to time to ensure they are aware of current risks.
6. CONTACT US
For any queries regarding the information in or nature of this statement, please contact us at [email protected]