Risk of CryptoCurrency Trades
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. Therefore, before deciding to start or continue cryptocurrency transactions, you are strongly encouraged to carefully read through this instruction, learn well about the systems and risks of cryptocurrency transactions, and determine appropriately by considering your financial resources, experiences, and purpose of cryptocurrency transactions.
1. Risk of Price Fluctuations
Cryptocurrencies dealt with us are not legal tenders. Their values are not guaranteed by anything specific. Cryptocurrencies are not always assets-backed. 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. 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 outside business hours of our company (including maintenance time).
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. Also, transactions may take time or not be placed, when orders remain either selling or buying.
4. Risk of No 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 transactions to be made.
5. Risk of Fork Splits
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, substantial declines in value may be caused, or transactions may become invalid in a retrospective manner.
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 order entries or any other factor. Also, unintended transaction results may be caused according to the order type or the market condition.
8. Risk of communication failures or system failures
Electronic trading systems may not be able to use temporarily or for a certain time or period, due to various reasons such as telecommunication equipment or system failures of our company or yours, communication failures, natural disasters including earthquakes, lightnings, fires and others, or cyber-attacks. Also, your order instructions may become invalid, lead to unintended transaction results, or not be placed when they are delayed or have not arrived to our system. In case of electronic trading system failures, our services in part or whole, including trade executions, may be suspended or restricted.
9. Risk of leakage of log-in information by you
Losses may be caused through electronic transaction systems, due to abuses of log-in information required for electronic authentication, when such information leaks due to thefts or through hacking.
10. Risk due to System Failures
System failures due to changes in the external environment, etc. may cause troubles to your transactions. System failures mean situations where our company judges that our systems have obvious defects to offer services (not including line disturbances and defects on your PC, etc.), and therefore your orders cannot be placed through internet (our website and smartphone site application), become delay, or impossible.
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 revisions in commission fees and any other expense
Our company may revise transaction rules including commission fees and any other expense.
13. Risk of Fiscal Collapses
Our company has a risk of not being able to continue businesses, due to changes in the external environment, etc. In the unlikely event that the continuance of our company has been made impossible, procedures will be taken according to laws and regulations, including measures on your assets. 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 case where our company has fiscal collapses, which may lead to your losses.
14. Risk of revisions in laws and taxation systems
Laws and taxation systems with regard to cryptocurrencies dealt with us, which are applied to those who are involved in cryptocurrency transactions dealt with us, are currently liquid. In the future, revisions in such laws and taxation systems or political measures may lead to prohibition or restriction of cryptocurrency transactions dealt with us, reinforcement of taxation, restriction of possessions of cryptocurrency transactions, or unfavorable handlings compare to the status quo. In that case, you might encounter unexpected losses. For details, please inquire with specialists such as a tax officer, licensed tax accountant, or lawyer.
Our company shall not in any way be responsible or liable for any risk specified as above. Moreover, what listed above are brief explanations of the risks typically associated with cryptocurrency transactions dealt with us, and they are not-all-inclusive of the risks associated with such transactions.