5. Risks

Interacting with a cryptocurrency platform comes with a number of specific risks for the user, including high market volatility, technical flaws, and regulatory challenges. These risks can be reduced through a comprehensive risk assessment and contingency planning.

• Cybersecurity Risks: Cryptocurrency platforms are an attractive target for cybercriminals due to the significant financial assets stored on these platforms. Attacks can be aimed at stealing cryptocurrency, gaining access to personal user data, or even disrupting the platform itself. One of the most common types of attacks is phishing attacks.

• Malware: A virus-infected computer or smartphone is a common cause of loss of cryptocurrency investments. If the victim uses a wallet, the criminals can steal the private key and perform transactions to empty the wallet.

• Asset Loss Risks: Cryptocurrencies are stored in digital wallets, access to which is granted through private keys. Losing the private key or access to the wallet can result in the complete loss of funds with no possibility of recovery.

• Technical Malfunction Risks: Technical issues such as system crashes, service unavailability, and scalability problems can significantly impact the operation of a cryptocurrency platform.

• Underlying Blockchain Risk: The possibility of a blockchain network failure or malfunction can pose a serious threat to the protocols you access through this offering. Such failures could lead to loss of access to your assets, transaction delays, or even funds loss.

• Legal Uncertainty: Many aspects of blockchain technology and related services are not clearly regulated by law. This creates uncertainty and risk for users as rules and requirements may change at any moment under the influence of regulators or legislation. These changes can affect your use of the offering and lead to restrictions in access to services or even potential liability.

• Market Volatility Risks: Cryptocurrency prices fluctuate significantly and can change rapidly. This poses a risk for platform users as asset prices can sharply decrease or increase, resulting in losses or profits.

Understanding and being aware of these risks will help users of cryptocurrency platforms make informed decisions and take action to ensure the security of their cryptocurrency funds.