All trading involves risk of capital loss. Cryptossets trading also involves additional special risks not generally shared with official currencies, goods or commodities. CryptoAssets do not have legal tender status, but rather they are backed by technology and trust. There is no central bank that can take corrective measures to protect the value of Crypto Assets. Moreover, there is always a risk that changes in the applicable legislative or regulatory regime may adversely affect the use, transfer, exchange, and value of Crypto Assets. Crypto Assets’ markets and exchanges are not currently regulated with the same control, and customers are not entitled to the same protections, available in relation to other financial instruments.
The following is a non-exhaustive list of risks associated with trading in Crypto Assets:
- The Crypto Assets market is a dynamic arena determined by demand and supply only. Crypto Assets’ prices are often highly unpredictable and volatile and they can and do fluctuate significantly on and during any given day. Due to such price fluctuations, the value of your assets may increase or decrease at any given moment and in some cases it may result in the loss of all the capital invested.
- The prices of Crypto Assets are usually not transparent and are highly speculative and susceptible to market manipulation. In the worst case scenario the assets could be rendered worthless.
- There are risks associated with utilizing an Internet-based system including, but not limited to, the failure of hardware, software, and Internet connections, the risk of malicious software introduction, the risk that third parties may obtain unauthorized access to information or assets, and cyber-attacks on the security, integrity or operation of the Crypto Assets’ blockchain or other underlying technology.
- The blockchain technology in which the Crypto Assets are being issued or traded is subject to failures, mistakes and other errors which, in the worst case scenario, may result in loss of all your Crypto Assets.
- The underlying protocols which govern the operation of Crypto Assets are subject to sudden changes in operating rules (“Forks”). Forks may materially affect the value, function, or even the name of the Crypto Assets you hold. In the event of a Fork, eToro X retain the right to temporarily suspend its operations (with or without advance notice to you) and to (a) configure or reconfigure its systems or (b) decide not to support (or cease supporting) the Forked protocol entirely.
- Virtual Assets Related Risks – Virtual Assets are a type of Crypto Assets representing a value connected to a selected fiat currency and/or commodity and/or any other financial instrument (for more details see terms and conditions). Virtual Assets may not be registered on the blockchain and may, therefore, not be withdrawn from your eToro X account. There is no guarantee that there will be an active market for one to sell, buy, or trade Virtual Asset within the eToro X platform or in alternative platforms. Any Virtual Asset is subject to delisting without notice or consent. The Virtual Asset will not grant you or any other person any other entitlement such as voting rights, contractual rights, redeem/repurchase right and/or a right for a profit or return.
You are voluntarily choosing to engage in sophisticated financial transactions which are associated with a significant risk of financial loss and are therefore not appropriate for everyone. You remain ultimately responsible for understanding the technological, economic and legal nature of Crypto Assets, for carefully and adequately managing your exposure in accordance with that understanding and for your risk appetite in respect of innovative, volatile and speculative new technologies and assets. Crypto Assets trading may not generally be appropriate, particularly with funds drawn from retirement savings, student loans, mortgages, emergency funds, or funds set aside for other long term purposes.
By using the eToro X services you are deemed to have reviewed, considered and understood all relevant aspects of Crypto Assets trading and found them suitable for you in light of your financial conditions and knowledge.