Special Note: Risks of Trading Virtual Assets
This special note represents an appendix to our Terms of Service of fulfillment, and an essential part thereof.
1. The value of virtual assets has high volatility (value can increase and decrease significantly in a very short period of time and at any given moment; furthermore, daily price volatility is particularly characteristic of virtual assets). Such price fluctuations bring uncertainty, and your entire amount invested may be lost at any given moment.
2. The value of a virtual asset and collapse in demand may be influenced by many factors, including rational or irrational bubbles, loss of confidence in the virtual asset, changes in software development, regulatory changes, creation of a competitive virtual asset, technical problems, political or non-political statements, and events, statements of influencers, news, market and liquidity risks, market manipulation, information security risks, phishing, social engineering, other hacker-attacks, and many more. All of these factors and those not specifically mentioned may lead the virtual asset to become worthless.
3. Virtual currencies have special risks that are not generally shared with official currencies, other commodities, or goods that are tangible or registered in the official registry, or otherwise available on the market. Virtual currencies are intangible, decentralized, digital assets, backed by technology, community, and trust.
4. Virtual currencies are not issued, nor backed by any government, central bank, or other similar institution. They do not fall under mandatory deposit insurance regimes, as is the case with deposits in FIAT money. In that sense, there is no legal safety net as there is with FIAT money. There are also other potential risks that may not be foreseen in this disclaimer.
5. The prices of crypto-assets are established without any mechanisms that ensure their correct formation, such as those used in regulated securities markets. There is no established regulated system to provide corrective measures to protect the value of virtual assets in a crisis.
6. Many virtual assets may lack the liquidity necessary to allow an investment to be unwound without significant losses, since their distribution among investors, both retail and professional, can be very limited.
7. You and you alone carry the liability and responsibility for any damage you might suffer as a result of trading in virtual assets. Any decision to purchase or sell virtual assets is solely your decision and Kriptomat shall not be liable for any loss suffered. Please note that after you transfer the virtual assets to a certain virtual wallet account such transfer cannot be revoked (blockchain transactions are irreversible) and we do not accept any responsibility for your actions.
Risk of delisting virtual assets
8. We may at anytime delist any of the virtual assets. Delisting of the virtual asset may result in a loss, either due to the client’s inability to provide liquidity for the virtual asset or due to the inability to transfer the token. In each case, Kriptomat cannot be held responsible for any loss incurred by the delisting of the virtual asset, regardless of the reason for delisting.
9. Delisting of the virtual asset can also negatively impact its price and its further adoption on the market.
Financial tolerance and your risk attitude
10. There is an inherent risk that losses will occur due to buying, selling, holding, or trading virtual assets. You should therefore carefully consider whether trading in virtual assets is suitable for you in light of your financial condition.
11. Prior to any investment in virtual assets, you should carefully consider whether your financial situation, personal circumstances and personal risk attitude are suitable for investing in virtual assets. It is immensely important you fully understand the potential risks, and that trading with virtual assets inherently means you are exposing yourself to potentially high risks, including the complete loss of your virtual assets. When accepting the risks and using our services, you guarantee us that you have sufficient knowledge, experience, and expertise in your financial risk management and virtual asset market. You must never invest assets you cannot afford to lose.
12. 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.
13. Virtual assets and blockchain industry and technology are still largely unregulated, often not disclosing the entity or individual behind it, or are without centralized governance as is the case with decentralized system technology. Technology risks may also lead to losses or unavailability of the virtual assets, so you should only engage in investing in virtual assets if you fully understand, acknowledge, and accept the risks that the underlying technology, protocols, and systems may change, or indicate technical and/or protocol issues or malfunctions, affecting the transaction with such virtual assets, including the underlying technology and software protocols on the Kriptomat platform. Kriptomat shall in no case be held liable or responsible for any malfunction or limited function of the underlying technology and protocols. Furthermore, Kriptomat does not guarantee and makes no representations or warranties of any kind, express or implied, statutory or otherwise, regarding the functionality or security of the network operation, its platform, and services provided through the platform.
14. The registration of transactions in networks based on distributed ledger technologies is carried out through consensus protocols that may be susceptible to attacks that attempt to modify the register. If they were to be successful there would be no alternative register that backs up the transactions, hence the balances corresponding to the public keys, and, therefore, all the crypto-assets could be lost.
15. The anonymity that crypto-assets can make them a target for cybercriminals, since if credentials or private keys are stolen the crypto-assets may be transferred to an addressee which makes their recovery difficult or impossible.
16. The custody of crypto-assets is a large responsibility since they can be lost in their entirety in the event of theft or loss of private keys.
17. You acknowledge you understand and accept the technical risks related to the blockchain technology, and risks related to use of the internet based services and systems, including, but not limited to: technical errors, technology development issues, technical constraints and malfunctions, network and communication errors or failures, fraud, cyber attack, virtual asset non-functionality, and similar. Kriptomat cannot be held liable for any such risk and consequences, including the loss or unavailability of your virtual assets, and you hereby fully acknowledge Kriptomat’s excluded liability in its entirety.
Limitation of our liability in case of cyber attacks
18. Virtual assets are inherently associated with the risks of theft as a result of various cyber-attacks, and there have been many cases of such attacks in the past where users have permanently lost their virtual assets.
19. Information security is an extremely important business area to which we devote considerable attention and resources. We use international best practices, are ISO 27001 certified, and are continuously improving our information security system – however, the risk of cyber incidents can never be completely eliminated. In case of hacking, cyber attack, exploited system vulnerability, theft of virtual currencies, or any other attack resulting in the loss, unavailability, or destruction of virtual assets (hereinafter: “cyber attacks”), we cannot be held responsible, and we shall not be responsible for any loss. Albeit we protect the virtual assets entrusted to us with the best market practice and we are continuously testing and improving our security systems, we cannot exclude the possibility of cyber attacks. Any occurrence of a cyber attack shall be considered as force majeure, a circumstance we could not predict nor prevent, and Kriptomat assumes no responsibility, and cannot be held responsible for any loss or damage that may result on your behalf from such a cyber attack. By using our services you specifically confirm and accept this limitation of liability.
Virtual asset withdrawal unavailability and limitation of liability in case of loss of virtual assets due to reasons on the side of third parties
20. A portion of virtual assets is kept with our liquidity providers, to assure the operation of the business. For certain virtual assets, for which withdrawal of the virtual assets is not available due to technical infrastructure limitations of our system, you are specifically informed about this prior to the purchase of such virtual assets, and you are required to provide opt-it consensus. In all such cases, the virtual assets are kept with third parties, our liquidity providers, and even though they are subject to our supplier audit, such virtual assets are subject to their security system, meaning we cannot guarantee the same level of security as for the virtual assets we keep with our custody service provider.
21. Furthermore, in all cases where your assets are kept for the reasons stated under the previous clause, with third parties – liquidity providers, we cannot in any way be responsible for any loss of your virtual assets, kept with our liquidity providers, either as a result of a cyber attack, other technical issues, or liquidity issues or bankruptcy proceedings of such liquidity provider. By using our service, and by selecting a virtual asset with withdrawal limitation, you confirm you are fully aware of this fact, you agree to the risks, and you shall not hold us liable for any such (or similar) occurrence resulting in loss or unavailability of your virtual assets held with our liquidity providers.
22. The acceptance of crypto-assets as a means of exchange is still very limited and there is no obligation to accept them.
23. The virtual currencies are kept in the digital wallets managed by FintechX OÜ, along with their private keys. In this sense, and as indicated on the main page, Kriptomat safeguards virtual assets safely through both cold (offline) and hot (online) storage. Therefore, the client is not in possession of the virtual asset and does not have access to its private keys. Kriptomat clients own the virtual asset they keep in their digital wallets. The client is responsible for all profits and losses related to the price fluctuation of the crypto assets he owns. The client has full discretion to hold, buy or sell their virtual currencies. Since Kriptomat additionally offers a custody service, Kriptomat keeps cryptocurrencies in secure storage on behalf of the client, subject to clauses 18 to 20.
24. The risk of loss in trading, buying, selling, or holding virtual assets is substantial. You should therefore carefully consider whether trading in virtual assets is suitable for you and your financial condition. Be careful to keep your private keys, passwords, security codes, and words to yourself, and change them on a regular basis.
25. Payment providers, banking partners, and other third-party service providers may be involved in the provision of our services. In such cases, you may be subject to third-party terms & conditions, whereas Kriptomat shall not be responsible for any loss that such third parties may cause to you.
26. No information provided to you by Kriptomat through notifications, articles, or by any other means, is intended as or shall be considered or construed as, investment advice, financial advice, trading advice, legal advice, or any other sort of advice. You are solely and fully responsible for your actions on our platform.
27. The virtual asset regulatory framework is still unstable as the regulation is either still forming in some countries, or is changing. The regulatory changes may significantly impact virtual assets, and they may adversely affect the use, value, availability, and transactions of virtual assets. The profitability of trading with virtual assets may also be heavily impaired by the tax regime.
28. You are solely responsible for assuring you are fully compliant with the applicable laws and regulations of your country and your applicable jurisdiction. We are an Estonian-based company, thus subjected to Estonian regulation. Our regulations may differ from yours, so make sure you have a thorough understanding of the regulatory requirements and that you follow them prudently. We shall not be responsible for your actions violating the law of your jurisdiction.
Warning against fraud
29. Kriptomat shall not ask users to transmit any funds, BTC, ETH, or other virtual assets to our bank account, BTC address, Ethereum address, or other addresses, which are not listed on the trading platform.
30. Kriptomat shall not be responsible for any losses caused by transmitting funds from/to bank accounts, or virtual funds to any addresses that are not listed or given to you on the trading platform.
31. Take care of always accessing the Kriptomat website through the link https://kriptomat.io/ and Kriptomat exchange platform through the link: https://app.kriptomat.io/login. In case of uncertainty or a suspicious link is given on forums or received by a suspicious account, user, or website, please contact our support immediately and do not transfer any fiat or virtual money to such suspicious links or accounts. In case of uncertainty, always type the website https://kriptomat.io or https://app.kriptomat.io/login into the browser yourself.
32. For the avoidance of doubt, we do not provide and will never provide any investment advice in connection with our services.
33. Please be very careful when considering entering into cooperation with entities claiming to be brokers and/or financial advisors and make sure you inspect the alleged financial service provider most diligently. It is very often the case that such entities are fraudulent. When being asked about your cooperation with brokers and/or investment advisors, please provide an exact and honest answer (IDCP check). Providing false information on your cooperation with brokers and/or financial investment may lead to our platform being misused, and importantly, our security measures being heavily impaired. It is your responsibility to provide us with truthful information and you shall bear all the consequences should you not provide accurate information and follow our safety procedures, instructions, and warnings.
34. Please also be aware that Kriptomat will never contact you via telephone. Please be aware that we do not have nor cooperate with any brokers or agents. If anyone contacts you outside of the Kriptomat platform or without using our official email addresses ending with @kriptomat.io, especially when claiming to be an agent or partner of Kriptomat, be very careful! These are fraudulent agents. For more detailed info please make sure to read our Fraud Awareness Note.
You shall assume all risk for any adverse outcomes.
35. Kriptomat does not guarantee full and unlimited availability of the services at all given times or that our services shall not be subject to downtime (such as service outages or network congestions). Therefore, it is possible that you will at times experience not being able to buy, sell, store, send or receive virtual assets. In all such cases, you shall not hold Kriptomat responsible or liable.