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Important warning: The purchase, sale, custody, transparency and any other operation with crypto-assets entails a substantial risk of loss. The volatility of the crypto-asset market can result in the total loss of its value in legal tender. You must carefully consider whether trading and investing in crypto-assets are appropriate for you, taking into account your financial situation, investment objectives and risk tolerance. This statement is intended to provide you with general information about various risks associated with the crypto-asset services offered by Bit2Me; it does not constitute a complete list of all possible risks. It should not be considered financial, investment, tax or legal advice. It is your responsibility to seek independent professional advice. |
1. General Market and Asset Risks
- Price Volatility: The value of crypto-assets is volatile and can fluctuate unpredictably. A crypto-asset may lose its value partially or totally in a very short period. Factors such as supply and demand, technological adoption, regulatory news, and media opinions can drastically impact its price.
- Liquidity Risk: The liquidity of a crypto-asset can vary significantly. The ability to buy, sell or exchange a crypto-asset depends on the availability of an active market. In times of low liquidity, you may not be able to sell your assets or may be forced to do so at a significantly lower price.
- No Guarantee: Crypto-assets are not legal tender. They are not backed by a central bank, nor are they covered by deposit guarantee or investor compensation schemes, such as those provided by the Credit Institutions Deposit Guarantee Fund. This means that, in the event of insolvency of the issuers, you could lose the entirety of the value of your crypto-assets.
2. Technological and Security Risks
- Fraud and Cybersecurity Risk: Crypto-assets are digital assets, which makes them vulnerable to cyberattacks, fraud, phishing, malware, spoofing attacks, and other security threats. The loss or theft of your access credentials, email, or control of your electronic devices such as mobile or computer can result in the irreversible loss of your crypto-assets.
- Technology Failure: The operation of crypto-assets is based on complex technologies. A failure in hardware, software, internet networks, blockchain protocols, or other technological infrastructures could cause a loss or a delay in the ability to transfer, sell, or spend your assets.
3. Regulatory and Compliance Risks
- Regulatory Risk (MiCA): The regulatory framework for crypto-assets in Europe, such as the MiCA Regulation, is constantly evolving. Changes in laws, directives, or regulatory policies could affect the viability, price, and liquidity of crypto-assets or limit the availability of certain services.
- Non-MiCA Compliant Crypto-assets: Some crypto-assets available on the market may not fully comply with the requirements of the MiCA Regulation. Trading this type of asset could entail a greater risk, particularly with regard to transparency, disclosures, and the possibility of future sale.
- Stablecoin Risks (MiCA): While stablecoins seek to maintain a stable value, not all issuers have the necessary authorization under MiCA. If a stablecoin issuer does not obtain the appropriate authorization, the assets may present a greater risk in terms of redemption and transparency.
4. Specific Service Risks
- Transfer Services Risk (Travel Rule): In compliance with European anti-money laundering regulations and the Travel Rule, Bit2Me may be required to request and transmit information about the participants in crypto-asset transfers, you and the originator or beneficiary. Failure to comply with these requirements may result in the blocking, delay, or cancellation of the transaction.
- Custody and Counterparty Risk: When Bit2Me acts as a custodian of your crypto-assets, there are risks that compromise the security of your assets. Although Bit2Me adopts robust measures, the nature of the risk cannot be completely eliminated.
Bit2Me does not offer investment advice. The information provided is for informational purposes only and should not be the basis for any investment decision. By using Bit2Me's services, you acknowledge and accept the risks inherent in the crypto-asset market and assume full responsibility for the investment decisions you make.