Risk Disclosure Statement
Important information about the risks of cryptocurrency trading
WARNING: Trading in cryptocurrencies carries a high level of risk and may result in the loss of all your invested capital. You should not invest more than you can afford to lose.
1. Price Volatility
Cryptocurrency prices are extremely volatile and can fluctuate dramatically within short periods. Prices may be affected by various factors including regulatory changes, market sentiment, and technological developments.
2. Regulatory Risk
The regulatory status of cryptocurrencies varies by jurisdiction and is subject to change. New regulations or enforcement actions could materially affect the value of your holdings.
3. Liquidity Risk
While we strive to provide deep liquidity, market conditions may affect our ability to execute trades at desired prices or in desired timeframes, particularly for very large trades or less liquid assets.
4. Technology Risk
Cryptocurrencies rely on blockchain technology and cryptographic systems. Technical failures, security breaches, or vulnerabilities could result in loss of funds.
5. Operational Risk
There are risks associated with system failures, human errors, and external events beyond our control. While we maintain robust systems and procedures, we cannot guarantee uninterrupted service.
6. Irreversibility
Cryptocurrency transactions are generally irreversible. Once a transaction is confirmed on the blockchain, it cannot be undone. Sending funds to an incorrect address may result in permanent loss.
7. No Government Protection
Cryptocurrencies are not legal tender and are not backed by any government or central bank. Unlike traditional bank deposits, cryptocurrency holdings are NOT protected by the Hong Kong Deposit Protection Scheme, FDIC insurance, or any similar government protection scheme. In the event of our insolvency or failure, you may lose all of your cryptocurrency holdings. You should only invest funds that you can afford to lose entirely.
8. Counterparty & Custodial Risk
When you trade with us, you are exposed to counterparty risk. While we maintain strict security protocols and segregate client assets, there is always a risk that exchanges, custodians, or other third parties we work with may fail, be hacked, or become insolvent. Historical examples include major exchange failures resulting in significant client losses. We cannot guarantee the solvency or security of third-party service providers.
9. Cybersecurity & Hacking Risk
Cryptocurrency platforms and wallets are targets for hackers and cybercriminals. Despite our robust security measures, there is always a risk of unauthorized access, theft, or loss due to cyberattacks. Phishing attacks, malware, and social engineering can compromise your personal credentials. You are responsible for maintaining the security of your own devices and accounts. Lost or stolen private keys cannot be recovered.
10. Tax & Legal Obligations
You are solely responsible for determining and fulfilling your tax obligations arising from cryptocurrency transactions. Tax treatment of cryptocurrencies varies by jurisdiction and may change. We do not provide tax advice and recommend consulting with a qualified tax professional. Failure to properly report and pay taxes on cryptocurrency gains may result in penalties, interest, or criminal prosecution.
11. Fork & Airdrop Risk
Cryptocurrency networks may undergo hard forks, soft forks, or airdrops that create new tokens or change the protocol. We may or may not support forked coins or airdropped tokens at our sole discretion. You may not receive new tokens resulting from forks or airdrops, and we are not liable for any losses related to unsupported forks or airdrops. Network upgrades may also temporarily affect the availability of our services.
12. Market Manipulation & Fraud
Cryptocurrency markets may be subject to manipulation, including pump-and-dump schemes, wash trading, and spoofing. The relatively unregulated nature of some cryptocurrency markets makes them susceptible to fraudulent activities. Prices may be artificially inflated or deflated. We are not responsible for losses resulting from market manipulation by third parties. Always exercise caution and conduct your own research.
13. Suitability & Independent Advice
Our services may not be suitable for all investors. Cryptocurrency trading is speculative and high-risk. Before trading, you should carefully consider your financial situation, investment experience, and risk tolerance. We do not provide personalized investment, legal, or tax advice. We strongly recommend that you seek independent professional advice before making any trading decisions. Past performance is not indicative of future results.
By using our services, you acknowledge that you have read, understood, and accepted the risks described in this disclosure statement.