Risk Disclosure Statement
1. Investment Risks
Investing in digital assets and cryptocurrencies involves significant risks. Before making any investment decisions, you should carefully consider the following risks:
2. Market Risk
- Digital asset prices are highly volatile and can change rapidly
- Past performance is not indicative of future results
- Market conditions can lead to substantial or total loss of investment
- External factors such as regulatory changes can impact asset values
3. Technology Risks
- Smart contract vulnerabilities and technical failures
- Blockchain network congestion and high transaction fees
- Wallet security and private key management risks
- Software updates and protocol changes
4. Liquidity Risk
Digital assets may become illiquid at any time, making it difficult or impossible to sell at desired prices or times. This can result in:
- Inability to exit positions
- Significant price slippage during execution
- Higher transaction costs
5. Regulatory Risk
The regulatory landscape for digital assets is evolving and varies by jurisdiction. Changes in regulations may affect:
- Asset legality and trading restrictions
- Tax treatment of investments
- Reporting requirements
- Platform operations and service availability
6. Counterparty Risk
- Risk of counterparty default or failure
- Smart contract execution risks
- Exchange and custodian risks
- Third-party service provider risks
7. Cybersecurity Risk
- Hacking and unauthorized access
- Phishing and social engineering attacks
- Malware and ransomware threats
- Data breaches and information theft
8. Market Manipulation Risk
- Price manipulation by large holders
- Pump and dump schemes
- False or misleading information
- Market manipulation through trading activities
9. Risk Management
We recommend implementing appropriate risk management strategies, including:
- Diversification across assets and strategies
- Setting appropriate position sizes
- Using stop-loss orders where available
- Regular portfolio monitoring and rebalancing
10. Investment Suitability
You should only invest funds that you can afford to lose. Consider your:
- Financial situation and resources
- Investment objectives and time horizon
- Risk tolerance and experience
- Other investments and obligations
Warning: Digital asset investments can result in the total loss of your invested capital. You should carefully read and understand this risk disclosure statement before making any investment decisions.
Last updated: 1/10/2025