Cryptoasset Risk Statement

Please read the following risk warnings carefully before using the Services.

Cryptoasset trading entails certain risks. This Risk Statement provides you with information about some of these risks but cannot predict all of the risks which may arise nor can it describe how such risks relate to your personal circumstances. If you are in any doubt about whether the Services are right for you, you may wish to seek guidance from a professional adviser. You should carefully assess whether your financial situation and tolerance for risk is suitable for any form of exposure to cryptoassets.

It is your obligation to peruse, comprehend and carefully consider or seek advice as to the risks described below in addition to the other information stated herein before deciding to access our Platform and use our Services.

You acknowledge, agree and warrant that you have been warned of the potential risks involved by using our Services, Platform and other relevant technologies mentioned herein as well as that there may be other risks involved, which are not specified herein and that you fully accept such risks.

Since the trading of cryptoassets is largely unregulated, the Services are not governed by any specific European or UK regulatory framework. This means that, when you use the services, you will not benefit from the protections available to consumers receiving regulated e-money/payment services (for example). Given the unregulated nature of the Services, users also do not benefit from access to the Financial Services Compensation Scheme nor the Financial Ombudsman Service.

Cryptoassets carry particular risks not generally shared with official currencies or goods or commodities in a market. The price or value of cryptoassets can rapidly increase or decrease at any time. It may even fall to zero. Unlike central bank money, no bank or government stabilizes the value of cryptoasset if it changes suddenly. The risk of loss in trading or holding an interest in cryptoassets can be substantial and can result in the loss of the entire value of your interest in cryptoasset.

The value of a particular cryptoasset can fall (and is more likely to do so than the value of fiat currency is). This could happen if, for example, new cryptoassets enter the market, changes are made to how the cryptoasset works, there is a change in cryptoasset regulation, or regulatory enforcement action.

Cryptoasset exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. Even though we take various steps to preserve the security of our Platform, cryptoassets which are held in wallets remain vulnerable to hacking.

Cryptoassets have been the subject of scrutiny by various regulatory bodies around the world (leading to regulatory risk). Cryptoassets could be impacted by one or more regulatory inquiries or actions, including but not limited to restrictions on the tradability or possession of cryptoassets, which could impede or limit their existence, permissibility of their use and possession, and their value.

There is a risk that in some jurisdictions cryptoassets might be considered to be a security (i.e. regulated financial instrument), now or in the future. GateHub does not give warranties or guarantees that specific cryptoassets are not a security in any jurisdiction. Each user should consider the consequences of cryptoassets that they hold being considered a security in their respective jurisdiction. The legal ability of GateHub to provide access to cryptoassets in some jurisdictions may be eliminated by future regulation or legal actions. In the event, it turns out with a high degree of certainty that specific cryptoassets are not legal in certain jurisdiction, GateHub will based on its sole discretion either (a) cease operations in that jurisdiction, or (b) adjust Services in a way to comply with the regulation should that be possible and viable. It is your obligation to check if acquisition and disposal of cryptoassets is legal in your jurisdiction, and by accepting these Terms of Use you expressly agree and warrant that you will not trade with cryptoassets should their use not be legal in the relevant jurisdiction.

The underlying protocols of the cryptoassets are subject to sudden changes in operating rules (‘forks’), and such forks may materially affect the value, function, and/or even the name of the cryptoassets.

There are risks associated with utilizing internet-based Services and Platform including, but not limited to, the failure of hardware, software, and Internet connections (Internet transmission risks).

There are risks associated with cryptography, such as code cracking or technical advances such as the development of quantum computers, could present risks to all cryptoassets including our Services (cryptography risks). This could result in the theft, loss, disappearance, destruction or devaluation of the cryptoassets. It is impossible to predict the future of cryptography or the future of security innovations to an extent that would permit cryptoassets accurately guide the development of the Platform and Services to take into Account such unforeseeable changes in the domains of cryptography or security.

Hackers or other groups or organizations may attempt to interfere with your third-party wallet, the Platform or the availability of Services in any number of ways, including without limitation denial of service attacks, Sybil attacks, spoofing, smurfing, malware attacks, or consensus-based attacks (risk of theft and hacking).