By accessing or using any cryptocurrency services made available through the Banxe platform banxe.com, you acknowledge that you have read and understood this Cryptocurrency Risk Disclosure.
The Banxe platform may present cryptocurrency-related services provided by third-party service providers. Banxe is not itself an electronic money institution, cryptoasset exchange, wallet provider, staking provider or other regulated provider of cryptocurrency services.
Cryptocurrency represented on the Banxe platform in exchange for cryptocurrency or fiat currency exchange services is solely provided by SIA "Paybis Europe", a company registered in Latvia under company number 40203730951, registered address: Brīvības iela 171, Rīga, LV-1012, Latvia, which has the right to provide crypto services.
Cryptocurrency staking services are provided by Everstake Validation Services LLC, a Cayman Islands limited liability company, registered address: c/o Hermes Corporate Services Ltd., Fifth Floor, Zephyr House, 122 Mary Street, George Town, P.O. Box 31493, Grand Cayman KY1-1206, Cayman Islands.
ProWallet is a non-custodial wallet: you alone hold and control the private keys and recovery phrase, and no one else, including any other listed Service Provider, has access to, holds or controls your cryptoassets or keys, or can recover them or reverse any transaction if they are lost or compromised. Cryptoassets held in it are not electronic money, are not safeguarded, and are not protected by any compensation scheme. Cryptoassets are high-risk and their value can fall to zero, so use ProWallet only if you understand these risks.
The availability of any cryptocurrency service depends on the user’s jurisdiction and applicable law. For users in the United Kingdom, nothing in this Risk Disclosure constitutes an offer or promotion of cryptoasset services where such offer or promotion would be unlawful.
Unique features of cryptocurrencies
Cryptocurrencies are high-risk digital assets and related services may be subject to limited or evolving regulation, depending on the jurisdiction. Cryptocurrencies are not legal tender in most jurisdictions, are not backed by any government or central bank, and may have no intrinsic value. Their value depends on market demand, technology, network adoption, liquidity and market confidence. As a result, the value of a particular cryptocurrency may fall sharply or may become worthless entirely.
Price volatility
The price of a cryptocurrency is based on the perceived value of the cryptocurrency and is subject to changes in sentiment, which make these products highly volatile. Certain cryptocurrencies have experienced daily price volatility of more than 20%. Cryptocurrencies are highly volatile and you should be prepared to lose some or all of the value of any cryptocurrency you buy, sell, hold, exchange or stake.
Valuation and liquidity
Cryptocurrencies can be traded through privately negotiated transactions and through numerous cryptocurrency exchanges and intermediaries around the world, each with its own pricing mechanism and/or order book. The lack of a centralized pricing source poses a variety of valuation challenges. Liquidity may be limited or may deteriorate rapidly, particularly during periods of market stress, meaning you may be unable to sell, convert, transfer or close out a position at the time, price or value you expect.
Cybersecurity
The cybersecurity risks of cryptocurrencies and related “wallets” or spot exchanges include hacking vulnerabilities and a risk that publicly distributed ledgers may not be immutable. A cybersecurity event could result in a substantial, immediate and irreversible loss for market participants that trade cryptocurrencies. Even a minor cybersecurity event in a cryptocurrency is likely to result in downward price pressure on that product and potentially other cryptocurrencies. Cybersecurity failures at an exchange, custodian, wallet provider, validator, protocol or third-party service provider may result in immediate, substantial and irreversible loss.
Opaque spot market
Cryptocurrency balances are generally maintained as an address on the blockchain and are accessed through private keys, which may be held by a market participant or a custodian. Although cryptocurrency transactions are typically publicly available on a blockchain or distributed ledger, the public address does not identify the controller, owner or holder of the private key. Unlike bank and brokerage accounts, cryptocurrency exchanges and custodians that hold cryptocurrencies do not always identify the owner. This may increase the risk of fraud, market abuse, manipulation, misleading pricing, conflicts of interest, false trading signals or operational failures, any of which may adversely affect value, execution quality or the ability to transact.
Regulatory landscape
The legal and regulatory treatment of cryptocurrencies and related services is evolving and differs significantly by jurisdiction. Certain activities involving cryptocurrencies may be restricted, prohibited or subject to licensing, registration, disclosure, financial promotions, consumer protection, anti-money laundering, prudential or conduct requirements. Regulatory action, legislative change, enforcement activity, tax treatment changes, or restrictions imposed by courts, regulators, market infrastructure providers, banks or payment providers may materially affect the availability, legality, transferability, valuation or use of cryptocurrencies and related services. In the United Kingdom, communications relating to cryptoassets may be subject to the financial promotions regime, and cryptoasset services may not be available to all persons or in all circumstances.
Technology
The relatively new and rapidly evolving technology underlying cryptocurrencies introduces unique risks. For example, a unique private key is required to access, use or transfer a cryptocurrency on a blockchain or distributed ledger. The loss, theft or destruction of a private key may result in an irreversible loss of cryptocurrency associated with this private key. Forks, airdrops, protocol upgrades, validator events, governance changes, smart-contract failures or other technical events may affect the availability, transferability, custody, valuation or functionality of a cryptocurrency. Where services are provided through a third-party provider, that provider may determine whether and how such events are supported. For example, a market participant holding a cryptocurrency position through a cryptocurrency exchange may be adversely impacted if the exchange does not allow its customers to participate in a fork that creates a new product.
Fees, charges and network costs
Transactions involving cryptocurrencies may be subject to blockchain or validator fees, spread, execution costs, exchange fees, custody or wallet fees, staking-related fees, and third-party provider charges. While not mandatory, a fee is generally necessary to ensure that a transaction is promptly recorded on a blockchain or distributed ledger. The amounts of these fees are subject to market forces, and it is possible that the fees could increase substantially during a period of stress. In addition, cryptocurrency exchanges, wallet providers and other custodians may charge high fees relative to custodians in many other financial markets.
Risk of partial or total loss of the invested amount
You may lose part or all of the value of any cryptocurrency you acquire, hold, exchange, transfer or stake. Losses may result from market movements, illiquidity, counterparty default, technology failure, smart-contract failure, protocol events, custody events, cybersecurity incidents, fraud, human error, regulatory action or tax consequences.
Risk of insufficient information disclosure
Information relating to a particular cryptocurrency, protocol, issuer, validator, project, staking arrangement or service provider may be limited, inaccurate, incomplete, outdated, highly technical or difficult to verify. You should not assume that any cryptocurrency or related service has been independently verified, approved, endorsed or assessed as suitable for your needs.
The risks described above are not exhaustive. Additional risks may arise depending on the specific cryptocurrency, protocol, wallet, validator, exchange, staking arrangement, service provider, jurisdiction, transaction type and market conditions. You should carefully assess whether cryptocurrency services are appropriate for you in light of your financial circumstances, investment objectives, risk tolerance, legal position and tax position, and you should obtain independent advice where appropriate.
Banking, payments and other financial infrastructure providers may be used in connection with fiat funding, settlement, safeguarding-related flows, payout or other ancillary functions. Such providers do not, by reason only of providing those banking or payment functions, provide the cryptocurrency exchange, wallet or staking services described in this Risk Disclosure.
WE DO NOT GUARANTEE ANY PROFIT, RETURN, PERFORMANCE OR OUTCOME IN RELATION TO ANY CRYPTOCURRENCY ACTIVITY. CRYPTOCURRENCY SERVICES ARE HIGH RISK. YOU SHOULD BE PREPARED TO LOSE SOME OR ALL OF THE VALUE INVOLVED. THIS RISK DISCLOSURE IS NOT EXHAUSTIVE AND DOES NOT CONSTITUTE INVESTMENT, LEGAL, TAX OR OTHER PROFESSIONAL ADVICE.
For users in the United Kingdom, this Risk Disclosure is provided for information purposes only. Nothing in this document is intended to communicate, approve or invite any activity in relation to cryptoassets where doing so would breach applicable UK law or the UK financial promotions regime. Availability of any virtual currency service is subject to jurisdictional restrictions and applicable law.