Risks of Cryptocurrency Transactions
Cryptocurrency transactions may incur losses due to price fluctuations of the cryptocurrencies transacted. With cryptocurrency transactions, benefits associated with price fluctuations may be gained. However, there are risks of losses associated with price fluctuations which may not be suitable for you. Therefore, when accessing or using our platform, you are strongly encouraged to carefully read through the statements below, learn well about the systems and risks of cryptocurrency transactions which include the following (non-exhaustive):
1. Risk of Price Fluctuations
Cryptocurrencies dealt with us may experience sudden price fluctuations due to changes in supply-demand dynamics, cost-of-living, legal tenders, movements in other markets, natural disasters, wars, political changes, and laws and ordinances, situations related to virtual currencies, or any other unexpected or unusual event. And therefore, the value of cryptocurrencies possessed by you or value of cryptocurrency transactions may experience sudden fluctuations or declines over a short period of time. Also, it should be noted that the value of cryptocurrencies dealt with us may become lower than the purchase prices, or even become zero.
2. Risk of Business Hours
Market prices may dramatically change during and after business hours of our company (including time spent on maintenance).
3. Risk of Liquidity
According to the market trend and transaction volume, transactions may become impossible or difficult, or forced to trade at prices considerably less advantageous.
4. Risk of Non Completion
Cryptocurrency transactions need a certain pending time until sufficient verification for such transactions is made (verification for such transactions through Blockchain). Also, cryptocurrency transactions dealt with us have a risk to become invalid in a retrospective manner, as they do not have any system to deterministically confirm the transactions to be made.
5. Risk of Split of Fork
Some cryptocurrencies dealt with us have a risk of losing mutual interchangeability, by splitting into more than two due to hard or soft forks. In that case, there may be a permanent or total loss of value of that particular cryptocurrency should the market or demand for that cryptocurrency disappear.
6. Risk of 51% Attacks
When mining rates of malicious users reach 51% or more through Blockchain network of cryptocurrencies, they may be able to justify their improper transactions, deny legitimate transactions, and/or monopolize their minings.
7. Risk of Erroneous Orders
Your intended orders may not be placed, or not-intended orders may be placed due to erroneous or accidental order entries. Unintended transaction results may be caused by a change of order type or the market condition.
8. Risk of communication failures
Electronic trading systems may not be able temporarily or may sustain for a certain time or period due to telecommunication equipment failures. As a result, your order instructions may become invalid, lead to unintended transaction results, or may not be placed and our services in part or whole, including trade executions, may be suspended or restricted.
9. Risk of Cyber fraud
The nature of cryptocurrencies may lead to an increased risk of fraud or cyber-attack, and may mean that technological difficulties experienced by our company may prevent the access to or use of your crypto assets.
10. Risk due to System Failures
The use of electronic trading systems and communication networks to facilitate trades exposes you to risks associated with the system including the failure of hardware and software system or network down timed access or connection failures.
11. Risk of acquiring unexpected values as transaction prices
Purchase and sale prices of cryptocurrencies calculated by systems may be unexpected values. When transactions with such unexpected values are found, such transactions may be canceled at our discretion.
12. Risk of Liquidation or Winding-Up
Our company has a risk of not being able to continue businesses due to changes in the external environment. In the unlikely event that the continuance of our company has been made impossible, procedures will be taken according to the current laws and regulations in force, including recovery measures on your digital assets which are currently uncontested. We sometimes also receive deposits of your money and cryptocurrencies dealt with us, which we manage separately from our own assets. However, we may not be able to refund your assets in full.
13. Risk of change of laws and regulations
In your jurisdiction, our company may not be regulated as a financial institution, deposits in your account(s) may not be considered deposits under the laws, rules or regulations applicable in your jurisdiction. As at the current date of this warning the cryptocurrency market is largely unregulated with little clarity on crypto assets. However the market is likely to be subject to increasing regulation in the future and participants should understand the risks associated on this note. Legislative or regulatory changes or actions in your local jurisdiction or at the international level may adversely affect the use, transfer, exchange and value of the crypto assets.
If you are located in Hong Kong, you are recommended to take note of the Hong Kong Government risk warning on virtual commodities.
Our company shall not in any way be responsible or liable for any of the risks specified above. Moreover, the list above are brief explanations of the risks typically associated with cryptocurrency transactions dealt with us and they are non-exhaustive. You are recommended to seek independent advices and consider your investment objectives, level of experience and risk tolerance prior to engaging our services.