Risk Disclosure and Warning

Dealing in Digital Assets involves a high degree of risk, and, therefore, should be undertaken only if you are capable of evaluating the risks involved and able to bear the risks of a complete loss of all capital used to purchase and deal in Digital Assets. You should carefully consider the risks described below, which are not intended to be exhaustive and do not necessarily include all of the risks to which you are or may be exposed, nor are they all the risks associated with dealing in Digital Assets.

Investment in Digital Assets is unregulated, may not be suitable for retail investors and the entire amount invested may be lost. Investments in early-stage projects involve a high level of risk, so it is necessary to properly understand their business model.

The prices are extremely volatile

Prices can fluctuate on any given day. Because of such price fluctuations, you may gain or lose fiat value of your assets at any given moment. Any Digital Assets may be subject to large swings in value and may even become worthless. There is always an inherent risk that losses will occur as a result of buying, selling, or trading anything on the market.

Investments in Digital Assets have specific risks that are not shared with other official currencies, goods, or commodities in a market.

Unlike most currencies, which are supported by government reserves or other legal entities, as well as commodities such as silver and gold, Bitcoin and other Digital Assets are “flat” currencies that are only backed by mathematics, technology, and trust. The currency is decentralized, which means no authority can take corrective measures to protect the cryptocurrency value in a crisis or issue more currency. Thereby Atomic or its representatives will never recommend you invest, sell, store, exchange, or trade any specific Digital Assets. In the case of unprepared investing, you can lose your funds. Every Digital Asset investor should understand the volatility of Digital Assets and make only his/her own decision on what to buy, sell, store, exchange, and trade. Atomic Wallet provides a Digital Asset wallet to manage your assets and doesn’t take any responsibility for how you use it.

Risks associated with the blockchain protocol

Distributed ledger technologies are still in an early stage of development as many of these networks have been created very recently, so they may not be sufficiently tested and there may be significant failures in their operation and security.

Because Digital Assets are based on blockchain protocols, any malfunction, breakdown or abandonment of a blockchain protocol may have a material adverse effect on them. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to Digital Assets by rendering ineffective the cryptographic consensus mechanism that underpins the blockchain protocol.

Atomic does not have control over blockchain protocols, which may be updated or modified, and we cannot guarantee their functionality, security or availability.

Risk of hacking and software and security weaknesses

The anonymity of Digital Asset can make them a target for cyber criminals, since if credentials or private keys are stolen, the Digital Assets may be transferred to addresses that make their recovery difficult or impossible.

Hackers or other malicious groups or organizations may attempt to interfere with Digital Assets in a variety of ways, including malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing, as well as attacks which overpower the consensus-based mechanism on which the blockchain is built and attacks which interfere with or otherwise cause nodes to malfunction (nodes are computers / hardware devices that help maintain the blockchain).

There is also an inherent risk that the software and related technologies and theories we use could contain viruses. Viruses could cause, inter alia, complete loss of Digital Assets, or could negatively affect the Site or our Services.

Risks associated with regulation

The regulatory status of Digital Assets and distributed ledger technology may be unclear or unsettled in certain jurisdictions. The acceptance of Digital Assets as a medium of exchange is still limited and there is no legal obligation to accept them. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to Digital Assets. It is likewise difficult to predict how or whether legislatures or regulatory agencies may in the future implement changes to law and regulation affecting Digital Assets. Regulatory actions could negatively impact Digital Assets in various ways, including, for purposes of illustration only, through a determination that a Digital Asset is a regulated financial instrument that requires registration or licensing. We may cease providing Services in relation to a Digital Asset in the event that regulatory actions, or changes to law or regulation, make it (potentially) illegal to provide them.

You are solely responsible to have a thorough understanding of, and to ensure your compliance with, all laws, rules, and regulations applicable to you or in your jurisdiction, which include, but are not limited to, compliance with tax, reporting and disclosure obligations.

Digital Assets have no refund rights or similar features

Digital Assets may lack the liquidity needed to unwind an investment without significant losses, as their circulation to both retail and professional investors may be limited.

After a transaction is executed, you will have no right to cancel a transaction or to receive a refund.

Unanticipated risks

Digital Assets are a part of and operate within a relatively new industry. In addition to the risks included above, there are other risks associated with your dealing in Digital Assets, including those that we cannot reasonably foresee. Additional risks may also materialize as unanticipated variations or combinations of the risks discussed above in this Risk Warning.

If you have any questions or doubts regarding the merits of your potential dealing in Digital Assets, you should seek the advice of an independent financial advisor.