Risk Warning
Last updated: June 10, 2020
A complete understanding of the risks associated with any financial transaction, including the live trading of digital tokens, is essential. The purpose of this Risk Warning is to outline some of the main risks with maintaining possession of and the trading of digital tokens. There are a number of risks specific to the buying, selling or trading of digital tokens found on this website including but not limited to Bitcoin or other cryptocurrencies. However, it is not possible to describe all risks associated with these transactions.
There is a serious risk involved in the buying, selling or trading of commodities and currencies including digital tokens including but not limited to Bitcoin or other cryptocurrencies. Due to rapid changes in their price, the value of your assets may significantly rise or fall including the risk of a total loss. This is a risk associated with any market related trade, but compounded with digital tokens because of the volitarity of this market. In addition, digital token trading has specific risks, which are not shared with other official currencies, goods or commodities in a market.
DXone expressly assumes no guarantee for the completeness of the risks presented. There are additional risks which are not presented here and individual risks may arise in certain situations. Further, both these listed risks as well as non-listed risks may occur both singly or cumulatively.
The presentation of these risks in no way replaces any advice that may be required from suitable consultants, including investment, legal, or tax specialists who are familiar with the users needs, objectives, experience and/or knowledge and circumstances. No information here should be taken as professional advice and does not provide substitution for the advice of qualified specialists.
The risks associated with the buying, selling or trading of digital tokens include;
Market risks
The risks in this section relate to those found associated with the use of either traditional markets or markets specific to digital tokens as found on this site.
Digital market risks
These products are not backed by government reserves or another commodity such as silver and gold. Because many of these products have a decentralized nature, they have little or no mechanism by which to address crisis conditions, adjust prices, or protect against user errors or fraud. There are a number of risks which have been identified with the price of Bitcoin and other similar products including expected or unexpected changes from the developers or the developers of similar products, changes in government policy, the adoption of similar products, or negative media publicity related to but not limited to theft.
Irreversibility risks
DXone operates a live market for the buying, selling, and trading of cryptocurrencies. These actions may be executed immediately and be impossible to reverse. Users should be warned that actions related to the the live trading of these cryptocurrencies may be impossible to change once executed.
Liquidity risk
Markets rely on counterparties for trades. In digital tokens, there can be at times a lack of counterparties to execute the trade, and the market becomes “illiquid.” This results in even greater than usual volatility and prices can drop quickly. It is impossible to know if any particular trade will be executed at a price desired by the user.
Counterparty risks
All trades dependent on counterparties contain the risk that the counterparty will be unable or unwilling to perform their obligations. As a result, either the user, other market participants or both may suffer from financial losses either as a result of the trade in question or as a result of a broader instability and volatility in the price of the digital token.
Operational risks
The risks in this section relate to those found associated with the operation of this company and other companies which operate similar sites.
Corporate solvency risks
Your access to the site and your digital tokens is contingent on the continued functioning of the site. Any negative action, including but not limited to insolvency or bankruptcy may result in losing access to this site and your tokens.
Information risk
The information found on, contained by, and available for access is intended for general guidance and for the education of our customers. However, it is not provided as advice or a service for investment, consulting, legal or any other professional advice or service. This site is not to be used as a substitute for a qualified professional advisor.
Wallet risks
Your digital tokens will be kept in a digital wallet on this site. This is industry standard. However, there are a number of risks associated with digital wallets, including computer related errors, or hacking and cyber attacks which could result in a partial or total loss of your digital tokens as well as other electronic or technological failures which make access to your wallet difficult or impossible for an indeterminate amount of time. Similarly, your wallet may be intentionally frozen if you are found to be in violation of the Terms of Use and the Acceptable Use policy.
Regulation risks
Because the area of financial regulation in which this site operates is still evolving, it is possible that additional regulations will result in the partial or complete reduction of some services including the complete shutting down of the site. These actions may negatively impact the users ability to access the site, execute market transactions, and access any of their funds on the site.
Partnership risks
The site relies on relationships with other partners in areas including but not limited to banking and KYC/AML. It is possible that either as a result of a failed partnership or the failure of the partner to complete their obligations in a permitted and secure manner that the users account or experience on the site could be compromised.
User risks
The risks in this section relate to those found associated with the users of this site and their expectations of how the site will operate.
Legal risk
The laws regarding the holding, using, and trading of digital tokens is changing rapidly in jurisdictions around the world. Without providing legal advice of any type, it may be unclear the legality of the transactions conducted in any given jurisdiction. This risk may include questions of taxation, property rights, or how trades are leveraged and executed. In all cases, the user is solely responsible for understanding the legal risks associated with any permitted use of this website.
Account risks
The user access this site as is and accepts all risks associated with the use of their account including the risk that the account may be frozen either temporarily or permanently as a result of violating the acceptable use policy. Further, if the users access information is lost or stolen, the investor may lose irretrievably all access to all aspects of their account including any investments they may have made. DXone in no way guarantees that access will be granted or restored to a users account.
Trading risks
Complex trades require the user to be fully aware of how they operate including any unique terms or conditions associated with the trade. The execution and any risks from these trades are entirely borne by the user.
Financial risks
The user should have sufficient financial resources and liquidity to cover all risks associated with the investments they make and to be able to wear them if necessary.
This current Risk Warning identifies a number of risks, however, there may be further unforeseen or not yet identified risks. All users must assess their financial situation and ability to handle the risks associated with the use of this website and the buying, selling or trading of the products offered by DXone.
Changes to the Risk Warning
DXone reserves the right to revise this Risk Warning at any time and for any reason. The most current and recent version can be found at this page and with the date at the top. We expect our users to stay aware of these legally binding changes by watching this page for changes. Certain elements of this Risk Warning may be superseded by changes in the law of our governing jurisdiction as well as by other notices found on this site.
