Trading in Blockchain assets entails certain risks.This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding, trading in Blockchain assets. Risks include, butare not limited to, the following:
The market for Blockchain assets is still new and uncertain. No-one should have funds invested in Blockchain assets or speculate in Blockchain assets that she is not prepared to lose entirely. Whether the market for one or more Blockchain assets will move up or down, or whether a particular Blockchain assets will lose all or substantially all of its value, is unknown. This applies both to traders that are going long and to traders that are shorting the market. Participants should be cautious about holding Blockchain assets.
Markets for Blockchain assets have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade Blockchain assets or products derived from or ancillary to them.
The legal status of certain Blockchain assets may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more Blockchain assets constitute property, or assets, or rights of any kind may also seem unclear. Participants are responsible for knowing and understanding how Blockchain assets will be addressed, regulated, and taxed under applicable law.
Exchange Risk (Counterparty Risk)
Having Blockchain assets on deposit or with any third party in a custodial relationship has attendant risks. These risks include security breaches, risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold their property for any reason.
In addition to liquidity risks, values in any Blockchain assets marketplace are volatile and can shift quickly. Participants in any Blockchain assets market are warned that they should pay close attention to their position and holdings, and how they may be impacted by sudden and adverse shifts in trading and other market activities.