> For the complete documentation index, see [llms.txt](https://experience.wallex.global/wallex/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://experience.wallex.global/wallex/terms-and-policies/wallexs-risk-disclosure-statement.md).

# Wallex's Risk Disclosure Statement

**IMPORTANT NOTICE**\
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Trading in Cryptoassets (including, without limitation, digital payment tokens or/including
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stablecoins) and using the App and other Wallex products and services involve risks, some of
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which are set out below. These risks, and additional risks arising either now or in the future,
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could result in the loss, failure or destruction of your assets, inability to receive any benefits
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available to you, other losses and termination of the Exchange. You must consider carefully
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whether the risks set out below, as well as all other applicable risks, are acceptable to you. You
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should seek professional advice regarding your particular situation before trading in
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Cryptoassets or using the Service.\
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You must also check the latest terms applicable as they may change from time to time.\
THE RISK OF LOSS IN TRANSACTIONS INVOLVING CRYPTO ASSETS CAN BE
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SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH
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TRANSACTIONS ARE SUITABLE FOR YOU IN LIGHT OF YOUR INVESTMENT
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OBJECTIVES, FINANCIAL CIRCUMSTANCES, YOUR TOLERANCE TO RISKS AND YOUR
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INVESTMENT EXPERIENCE. YOU SHOULD BE CAPABLE OF BEARING A FULL LOSS OF
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THE AMOUNTS INVESTED AS A RESULT OF OR IN CONNECTION WITH ANY ORDER AND
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ANY ADDITIONAL LOSS OVER AND ABOVE THE INITIAL AMOUNTS INVESTED THAT MAY
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BECOME DUE AND OWING BY YOU. IN CONSIDERING WHETHER TO TRADE OR INVEST,
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YOU SHOULD INFORM YOURSELF AND BE AWARE OF THE RISKS GENERALLY, AND IN
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PARTICULAR SHOULD NOTE THE FOLLOWING SPECIFIC RISKS.<br>

1. **Transaction and Exchange risks**\
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   **1.1 Risks of Cryptoasset trading**\
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   The prices of Cryptoassets fluctuate, sometimes dramatically. The price of a Cryptoasset may
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   move up or down, and may become valueless. It is as likely that losses will be incurred rather
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   than profit made as a result of buying and selling Cryptoassets.\\

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   **1.2 Nature of Cryptoassets**\
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   The Cryptoassets are not legal tender. They may not be backed by physical assets, and are not
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   backed or guaranteed by a government. They may not have intrinsic value. Some of the
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   Cryptoassets may not circulate freely or widely, and may not be listed on any secondary
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   markets. Cryptoassets are generally a high-risk asset class. You should exercise caution in
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   relation to the trading of Cryptoassets, and Cryptoassets themselves. Transactions involving
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   Cryptoassets are irrevocable. Lost or stolen Cryptoassets may be irretrievable. Once a
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   transaction has been verified and recorded on a blockchain, loss or stolen Cryptoassets
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   generally will not be reversible.\
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   **1.3 Reliance on distributed ledger technology**\
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   Cryptoasset s rely on various types of distributed ledger technology. Some of this technology is
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   open source software that is built upon experimental technology, namely blockchain. Risks
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   arising from this reliance include the existence of technical flaws in the technology, targeting by
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   malicious persons, majority-mining, consensus-based or other mining attacks, changes in the
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   consensus protocol or algorithms, decreased community or miner support, rapid fluctuations in
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   value of relevant Cryptoasset s, the existence or development of competing networks, platforms
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   and assets, flaws in the scripting language, disputes between developers, miners and/or users
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   and regulatory action.\
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   **1.4 Cryptoassets may be complex products**\
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   Cryptoassets may be complex products by virtue that the terms, features and/or risk are not
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   readily understood due to the complex structure, novelty and reliance on technological features.\
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   **1.5 Volatility of Cryptoassets**\
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   The value of the Cryptoasset s may fluctuate significantly over a short period of time. The
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   volatile and unpredictable fluctuations in price may result in significant losses over a short
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   period of time. Any Cryptoasset may decrease in value or lose all of its value due to various
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   factors including discovery of wrongful conduct, market manipulation, change to the nature or
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   properties of the Cryptoasset , governmental or regulatory activity, legislative changes,
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   suspension or cessation of support for a Cryptoasset s or other exchanges or service providers,
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   public opinion, or other factors outside of our control. Technical advancements, as well as
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   broader economic and political factors, may cause the value of Cryptoasset s to change
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   significantly over a short period of time.\
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   **1.6 Market, liquidity and conversion risk**\
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   Where an order is denominated in particular Cryptoassets other than your primary reference
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   asset, or where you convert Assets following the execution of an order, there is a risk that if the
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   exchange markets move against you, then upon maturity or any earlier dealing the net proceeds
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   may be significantly less than the initial amount in your primary reference asset, and any income
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   or gains may be entirely negated. The value of a particular Cryptoasset may decline, or be
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   completely and permanent lost, should the market for that Cryptoasset disappear. There is no
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   assurance that a market for a particular Cryptoasset will continue to do so in the future. This is
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   because the value of an Asset may be derived, among other things, from the continued
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   willingness of market participants to exchange that Cryptoasset. There is the possibility for you
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   to experience losses due to the inability to sell or convert assets into a preferred alternative
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   asset immediately or in instances where conversion is possible but at a loss. Such liquidity risk
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   in an asset may be caused by the absence of buyers, limited buy/sell activity or underdeveloped
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   secondary markets. There is no assurance that a person who accepts a Cryptoasset as
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   payment, will continue to do in the future. You may also suffer loss as a result of depreciation of
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   the value of the Cryptoasset paid as a result of controls imposed by a Government Agency.
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   Repayment or payment of amounts due to you may be delayed or prevented by exchange
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   controls or other actions imposed by governmental or regulatory bodies over Cryptoasset that
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   they control or regulate.\
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   **1.7 Risks of assets subject to other overseas laws**\
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   Cryptoassets received or held by us may be are subject to other applicable laws and regulations
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   of the relevant overseas jurisdictions.\
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   **1.8 Risks relating to Authorised Persons**\
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   There are substantial risks in allowing another person to trade or operate your Account or any
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   other account you have with us, and it is possible that Instructions could be given by persons
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   who are not properly authorised. You accept all of the risks of such an operation and irrevocably
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   release us from all liabilities arising out of or in connection with such Instructions.\
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   **1.9 Suspension of the Exchange and Network Events**\\

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   It may be difficult or impossible to liquidate a position in the Cryptoassets under certain
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   circumstances. Certain Network Events may occur rapidly and affect the ability to conduct
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   transactions on the Exchange. Information relating to these Network Events may be difficult to
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   ascertain ahead of time and may be subject to limited oversight by any third-party who is
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   capable of intervening to stabilise the network.<br>
2. **Cybersecurity and technology-related risks**\
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   **2.1 Transactions irreversible**\
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   The nature of Cryptoasset transfers is that they are irreversible. This means accidental or
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   fraudulent transactions in respect of Cryptoassets may not be recoverable.\
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   **2.2 Cyber-attacks and fraudulent activity**\
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   The technologic reliance of the Exchange on the Internet exposes you to an increased risk of
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   fraud or cyber-attack. Cryptoassets, an Account, a Wallet, the Service may be targeted by
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   malicious persons who may attempt to steal Cryptoassets, or otherwise intervene in the order or
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   any of the Service. This includes (but is not limited to) interventions by way of:\
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   (a) distributed denial of service;\
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   (b) sybil attacks;\
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   (c) phishing;\
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   (d) social engineering;\
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   (e) hacking;\
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   (f) smurfing;\
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   (g) malware;\
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   (h) double spending;\
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   (i) majority-mining, consensus-based or other mining attacks;\
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   (j) misinformation campaigns;\
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   (k) forks; and\
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   (l) spoofing.\
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   Cryptoassets, Accounts, Wallets or the Exchange may also be vulnerable to exploitation of
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   vulnerabilities in smart contracts and other code, as well as to human error. A limited amount of
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   your Cryptoassets may be stored in hot wallets (ie online environments which provide an
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   interface with the internet), which can be prone to hacking or cyber-attacks. Cyber-attacks
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   resulting in the hacking of Cryptoasset trading platforms and thefts of Cryptoassets are
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   common. Victims may have difficulty recovering losses from hackers or trading platforms. This
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   could result in significant loss and/or other impacts that may materially affect your interests. The
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   above events may affect the features, functions, operation, use, access or other properties of
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   the Cryptoassets, your Account, your Wallet or the Exchange.\
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   **2.3 Targeting by malicious persons**\
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   Malicious entities may target you in an attempt to steal any asset that you may hold, or to claim
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   any asset that you may have purchased. This may involve unauthorised access to your
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   Account, your private keys, your addresses, your passwords, your email or social media
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   accounts, your log-in details or access method for the Account, as well as unauthorised access
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   to your computer, smartphone and any other devices that you may use.\
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   You alone are responsible for protecting yourself against such actions.\
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   **2.4 Cryptographic advancements**\
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   Developments in cryptographic technologies and techniques, including (but not limited to) the
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   advancement of artificial intelligence and/or quantum computing, pose security risks to all
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   cryptography-based systems including the Cryptoassets, the Account, the Wallet or the
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   Exchange.\
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   Applying these technologies and techniques to the Cryptoassets, an Account, a Wallet, or the
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   Exchange may result in theft, loss, disappearance, destruction, devaluation or other
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   compromises of the Cryptoassets, an Account, a Wallet or the Exchange or your data (as
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   applicable).\
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   **2.5 Reliance on the internet and other technologies**\
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   Cryptoassets and the Exchange rely heavily on the internet and other technologies. However,
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   the public nature of the internet means that either parts of the internet or the entire internet may
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   be unreliable or unavailable at any given time. Further, interruption, delay, corruption or loss of
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   data, the loss of confidentiality in the transmission of data, or the transmission of malware may
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   occur when transmitting data via the internet and/or other technologies. The result of the above
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   may be that your order is not executed according to your instructions, at the desired time, or not
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   at all. No authentication, verification or computer security technology is completely secure or
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   safe. The internet or other electronic media (including without limitation electronic devices,
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   services of third-party telecom service providers such as mobile phones or other handheld
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   trading devices or interactive voice response systems) are an inherently unreliable form of
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   communication, and such unreliability may be beyond Wallex ’s control.\
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   Any information (including any document) transmitted, or communication or transactions made,
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   over the internet or through other electronic media (including electronic devices, services of third
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   party telecommunication service provider such as mobile phones or other handheld trading
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   devices or interactive voice response systems) may be subject to interruption, transmission
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   blackout, delayed transmission due to data volume, internet traffic, market volatility or incorrect
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   data transmission (including incorrect price quotation) or stoppage of price data feed due to the
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   public nature of the internet or other electronic media.\
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   **2.6 Risks relating to timing**\
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   An order is binding upon completion of the steps described in these Terms and Conditions.
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   Following this, the order will not be reversed unless otherwise provided in this Agreement.
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   There is a risk that the final binding order does not occur at the same time as Instructions are
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   provided.\
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   You may suffer loss due to the fact that an order is not carried out at the desired time. In
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   particular, contingent orders, such as “stop-loss” or “stop-limit” orders, may not limit your losses
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   to the intended amounts, since market conditions may make it impossible to execute such
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   orders.\
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   **2.7 Unauthorised access**\
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   Unauthorised third parties may access your Account and submit orders without your knowledge
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   or authorisation, whether by obtaining control over another device or account used by you, or by
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   other methods.\
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   **2.8 Exchange materials may not be up to date**\
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   Wallex is not obliged to provide any adaptations, enhancements and/or modifications to the
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   Exchange Materials. This means, for example in relation to the App, that you may have an out
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   of date version of the App, and new features may not be incorporated to the version of the App
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   you use. It is your responsibility to ensure you update and download applicable updates and
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   versions.<br>
3. **General risk statements**\
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   **3.1 Jurisdiction-related risks**\
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   Residents, Tax residents or persons having a relevant connection with jurisdictions other than
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   Available Jurisdictions are prohibited from using the Exchange and from submitting orders.
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   Changes in your place of domicile or Applicable Law may result in you violating any legal or
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   regulatory requirements of your applicable jurisdiction.\
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   You are responsible for ensuring that any order is, and remains lawful despite changes to
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   Applicable Law, your residence and circumstances.\
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   **3.2 Product-related risks**\
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   Wallex may have issued certain Cryptoassets, whereas other Cryptoassets are issued by third
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   parties. In any event, you must read the applicable product terms, product information and risk
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   disclosures carefully before entering into an order. No product term or product information has
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   been subject to regulatory approval, unless expressly stated otherwise. You should exercise
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   caution in respect of any such offer.\
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   For any Cryptoasset products that have been authorised by a regulator, authorisation does not
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   imply any official recommendation or endorsement of the product by the regulator, nor does it
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   guarantee the commercial merits of a product or its performance. You should seek independent
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   professional advice before making any investment decision.\
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   **3.3 Tax treatment and accounting**\
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   Some Cryptoassets and orders may be subject to the tax laws and regulations in an applicable
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   jurisdiction. The tax treatment and accounting of Cryptoassets (and any ancillary benefits) is a
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   largely untested area of law and practice that is subject to changes. Tax treatment of
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   Cryptoassets may vary amongst jurisdictions. We may receive queries, notices, requests or
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   summons from tax authorities and as a result may be required to furnish certain information
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   about the order. Among the accounting profession, there are no agreed standards and practices
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   for how an auditor can perform assurance procedures to obtain sufficient audit evidence for the
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   existence and ownership of the Cryptoassets, and ascertain the reasonableness of the
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   valuations. If you are unsure about the tax implications of your orders, you should seek
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   independent professional advice before carrying out an order.\
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   **3.4 Inflation Risk**\
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   Cryptoassets may, either because of the inherent design of the Cryptoasset or through Network
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   Events, not be a fixed supply of assets. Where additional Cryptoassets are created, the asset’s
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   price may decline due to inflationary effects of adding additional Cryptoassets to the total assets
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   available.\
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   **3.5 Concentration risk**\
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   At any point in time, one or more persons may directly or indirectly control significant portions of
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   the total supply of any particular Cryptoasset. Acting individually or in concert, these holders
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   may have significant influence, and may be able to influence or cause Network Events which
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   may have a detrimental effect on price, value or functionality of the Cryptoassets. Network
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   Participants may make decisions that are not in your best interest as a holder of Cryptoassets.\
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   **3.6 Country risks**\
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   If a transaction is made in any Cryptoasset issued by a party subject to foreign laws or
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   transactions made on markets in other jurisdictions, including markets formally linked to a
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   domestic market, recovery of the sums invested and any profits or gains may be reduced,
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   delayed or prevented by exchange controls, debt moratorium or other actions imposed by the
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   government or other official bodies. Before you submit an order, you should satisfy yourself
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   about any rules or laws relevant to that particular order.\
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   Your local regulatory authority will be unable to compel the enforcement of the rules of
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   regulatory authorities or markets in other jurisdictions where your transactions have been
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   effected. You should obtain independent advice about the different types of redress available in
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   both your home jurisdiction and other relevant jurisdictions before you start to trade. If your
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   country of residence imposes restrictions on Cryptoassets, we may be required to discontinue
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   your access to the Account, and may not be permitted to transfer Cryptoassets back to you or
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   permit you to transfer Cryptoassets from the Account to yourself or others, until such time as the
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   regulatory environment permits us to do so.\
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   **3.7 Regulatory uncertainty**\
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   All Cryptoasset are potentially exposed to legal and regulatory risks. The legal and regulatory
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   treatment of some of the Cryptoassets may change. Regulation of Cryptoasset s is unsettled
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   and rapidly changing. Legal and regulatory treatment varies according to the jurisdiction. The
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   effect of regulatory and legal risk is that any Cryptoasset may decrease in value or lose all of its
   \
   value due to legal or regulatory change.\
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   We may cancel or modify your order, restrict or suspend your use of the exchange or your
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   Account to comply with Applicable Law or for other reasons as specified in the Agreement. We
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   recommend you obtain independent legal, tax and financial advice and that you continue to
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   monitor the legal and regulatory position in respect of the Cryptoassets and your orders.\
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   In this document, the following terms have the following meanings, unless the contrary intention
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   appears.\
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   Account means an account that is established by Wallex in your name for the purposes of the
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   Exchange, which may be available via the App or website, and or any other means as
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   determined by Wallex at its sole discretion.\
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   AML/CTF Requirements means any Applicable Law in relation to money laundering, terrorism
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   financing, bribery, corruption, tax evasion, fraud, the trafficking of arms, drugs humans or
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   wildlife, slavery, proliferation of weapons of mass destruction and so on.\
   \
   App or Wallex App means the mobile application software developed, owned and made
   \
   available by Wallex via its platform which allow you access one or more of the Services
   \
   together with any and all updates, upgrades, supplements, releases and versions thereof.\
   \
   Applicable Law means any applicable common law, principles of equity and laws made by a
   \
   government or relevant authority or judicial body, including regulations, rules, decrees, court
   \
   judgements, arbitral awards, office directives, requests policies, codes, circulars, guidelines or
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   other instruments (whether or not having the force of law) and any consolidations, amendments
   \
   or replacements and includes AML/CTF Requirements and Financial Crime Regulation.\
   \
   Cryptoasset means virtual, electronic or cryptographic currency including tokens or blockchain
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   assets, as may be added or removed from time to time at its sole discretion.\
   \
   Exchange means the exchange that is operated by Wallex in accordance with these terms.\
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   Government Agency means any government, semi-governmental, administrative, fiscal, judicial
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   or quasi-judicial body, department, commission, authority, tribunal, agency or entity.\
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   Service means the services an all related features, services, content and applications, which
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   includes: (i) access to and use of the Exchange where you place orders to trade Cryptoassets
   \
   as well as (ii) any other products or services contained in the App or platform (as applicable) or
   \
   otherwise shown on the Exchange or our official communication channel from time to time.\
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   Wallet means any virtual asset wallet provided to you by Wallex referred to in these terms.