Risk Notice
Updated Date: May 24, 2025, 12:00 AM
VIRTUAL ASSET RISK DISCLOSURE STATEMENT
Users and investors engaging with virtual assets are strongly advised to understand the significant risks associated with digital asset transactions. These risks may adversely affect the value, accessibility, and security of virtual assets. Before participating in any activity involving virtual assets, it is essential to carefully consider the following:
1. PRICE VOLATILITY AND LOSS OF CAPITAL
Virtual assets are inherently speculative and subject to extreme price volatility. Their value can fluctuate dramatically within short periods due to market sentiment, regulatory developments, technological shifts, or macroeconomic events. There is no assurance that any virtual asset will maintain or increase in value. In some cases, assets may decline sharply or become entirely worthless.
2. TRANSACTION FINALITY AND TRANSFERABILITY
Virtual asset transfers are generally irreversible once confirmed on a blockchain or Distributed Ledger Technology (DLT). Mistakes in wallet addresses, recipient details, or transaction instructions cannot be undone, potentially resulting in permanent asset loss. In addition, asset transfers may be delayed, restricted, or blocked due to technical failures, smart contract behavior, or legal/regulatory actions.
Users are solely responsible for verifying all transaction information prior to execution.
3. LIQUIDITY CONSTRAINTS
Some virtual assets may suffer from low trading volumes or limited market participation, which can make it difficult to convert holdings into fiat currency or other assets at predictable prices. Illiquid markets may result in delays, unfavorable execution, or the inability to exit positions during market stress.
Liquidity levels are dynamic and influenced by demand, exchange listing status, and external regulatory factors.
4. TRANSPARENCY VS. PRIVACY RISKS
Blockchain transactions are often recorded publicly and immutably, allowing for transparent verification but reducing personal privacy. While certain digital assets may offer enhanced confidentiality features, these tools are not absolute and may be subject to technical or legal limitations.
Regulatory authorities may require disclosures that further reduce anonymity in future implementations.
5. SECURITY THREATS, FRAUD, AND LEGAL LIMITATIONS
Virtual assets are vulnerable to various forms of cyber risk and criminal exploitation. These may include hacking, phishing, malware, unauthorized access, or manipulation of digital wallets and exchanges. Weaknesses in smart contracts or infrastructure layers may also result in asset loss.
Importantly, virtual assets typically do not benefit from the same consumer protections or guarantees that apply to regulated financial products. There may be no recourse in the event of theft, fraud, service failure, or platform insolvency.
6. NO LEGAL OR FINANCIAL ADVICE PROVIDED
This document is provided for informational purposes only and does not constitute legal, financial, or investment advice. Users are encouraged to seek independent professional advice before engaging in any virtual asset-related activity.
By transacting in virtual assets, users confirm that they:\n- Understand and accept the risks outlined above; and
Assume full responsibility for any resulting financial loss or operational consequences.