SpectroCoin Exchange Risk Warning Statement
SpectroCoin Exchange Risk Warning Statement
This Risk Warning Statement provides you with information about the risks associated with services, provider by the service provider (hereinafter “SpectroCoin Exchange company” or “we”), defined in in the Terms of Service of SpectroCoin Exchange service (hereinafter “SpectroCoin Exchange services” or “Services”) and which are accessible via or via spectrocoin.com or its subdomain exchange.spectrocoin.com (hereinafter the “Site”) . This document is an integral part of the Terms of Service.
The Services offered by us include mainly services and products related to Digital Currencies. Such Services carry a high degree of risk and may not be suitable for every person.
This Risk Warning Statement provides you with information about the risks associated with the Services, however, it cannot and does not explain and disclose all of the risks and other aspects involved in using the Services and holding, trading or engaging in transactions in Digital Currencies, nor how such risks relate to your personal circumstances, financial standing and tolerance for risk. There may be additional risks that are not foreseen or identified in this Risk Warning Statement.
In your considerations regarding suitability of the Site and/or the Services for you, you agree to do your own research and carefully consider, assess and evaluate at least each of the following risk factors indicated in this Risk Warning Statement and all other information contained in the Terms of Service before using any of the Services. Therefore, by accessing this Site and/or using the Services you confirm that you undertake and understand all the possible risks that directly or indirectly arise from the activity connected with your use of the Services and/or this Site.
Risks include, but are not limited to, the following:
- The market for Digital Currencies is decentralised, unregulated, new, unconfirmed and uncertain. The market is determined by demand and supply only. It will not necessarily expand or evolve. Moreover, it may abruptly cease to exist. Therefore, there is never a guarantee that there will be an active market for you to sell, buy, trade or perform other transactions with Digital Currencies.
- The market for Digital Currencies is very dynamic and volatile, and it may rise or fall due to many factors which for the most part are unknown and unpredictable. Any particular Digital Currency or the market itself may lose all of its value.
- The market information relating to the past performance of Digital Currency transactions is not necessarily a guide to its performance in the future.
Price and Liquidity Risks:
- The market for Digital Currencies has varying degrees of liquidity and a history of extreme volatility in terms of both price and liquidity. There is never a guarantee that the market will be liquid. We cannot and does not guarantee any market liquidity or value for any Digital Currency listed at the Site currently or in the future. You must understand that the current value or price of any Digital Currency can drop as low as zero at any point.
- There is a high chance that under certain market conditions you will find it difficult or impossible to liquidate your Digital Currencies.
- We do not guarantee that you will be able to trade or sell your Digital Currencies to any third party, including, but not limited to, other exchanges.
- We do not guarantee any profit from trading or any other activity associated with the Site and/or the Services.
- By using the Services you may lose all of your funds and/or Digital Currencies and also incur losses beyond such funds and/or Digital Currencies. No one should have funds invested in Digital Currencies or trade or otherwise transact in Digital Currencies that he is not prepared or cannot afford to lose entirely.
- There are no guarantees or warranties about whether your Digital Currencies that may be traded on the Site may be traded on the Site any point in the future, if at all.
- The value of your trades, orders and transactions may go down, their bid and offer value may fluctuate widely and suddenly.
- The prices of Digital Currencies are highly speculative and susceptible to market manipulation. Digital Currencies have demonstrated extreme fluctuations in price over short periods of time on a regular basis. You must be prepared to accept similar fluctuations in any of your Digital Currency's value.
- Due to different regulatory requirements in different jurisdictions the liquidity of your Digital Currencies may be markedly different in different jurisdictions.
Legal and Regulatory Risks:
- Digital Currencies are unregulated and cannot be considered as official government backed currency. The legal status of Digital Currencies is uncertain and undefined, and is subject of change under different jurisdictions.
- You must understand that the legality of having or trading Digital Currencies is not clear and may not be clear in the future. Depending on your jurisdiction any of your Digital Currencies may constitute property, asset, security, mean of exchange, rights of any kind or even illegal or prohibited asset, as well as raise tax concerns. Especially, under applicable securities law your trades, orders or transactions in any Digital Currency may be prohibited or restricted and you may not be well informed about the Digital Currency or have other investor rights as you would by the standards required under applicable securities law.
- Certain jurisdictions, including, but not limited to, your jurisdiction and our jurisdiction, may apply existing regulations on or introduce new regulations addressing Digital Currencies and/or the Services, which may result in substantial modifications of the Services, including potential loss of your Digital Currencies and their value. Furthermore, such jurisdictions may make it illegal to operate in such jurisdiction and/or use Digital Currencies or make it commercially undesirable to obtain the necessary regulatory approvals to operate in such jurisdictions.
- Digital Currencies are being, or may be, scrutinized by the regulatory authorities of various jurisdictions. We may receive queries, notices, warnings, requests or rulings from one or more regulatory authorities from time to time, or may even be ordered to suspend or discontinue any action in connection with us and/or the Services, as well as be impacted by one or more regulatory inquiries or regulatory actions, which could impede or limit our ability to further conduct business. The development, marketing, promotion or otherwise of SpectroCoin Exchange company and/or the Services may be seriously affected, hindered or terminated as a result.
- Due to uncertain status of Digital Currencies in the event of a dispute you may lack a suitable legal remedy or it may prove very difficult and costly for you to assert your legal rights in your jurisdiction.
- All Digital Currency transactions are irreversible and for the most part are anonymous. It may be difficult if not impossible to identify the counterparty of your trade, order or transaction.
- We may choose to provide any of the Services via third parties. Such third parties may not be regulated entities, lose your funds or Digital Currencies, become insolvent, suffer security or contractual breaches and may not provide any legal protection in regard to your funds or Digital Currencies, or losses arising from any funds or Digital Currencies held with such third party.
- Any digital wallet provider you use may be vulnerable to hacks, resulting in the theft or loss of your Digital Currency.
- The trading of Digital Currencies is considered a very risky transaction with highly speculative outcomes. You must be aware that you may be negatively impacted by sudden and adverse shifts in trading, volatility of any Digital Currency's value and other market activities. The risk of loss in trading Digital Currencies can be substantial and inherent.
- Digital Currencies themselves are not offered by any government, financial institution or us.
- Due to various reasons, including, but not limited to, lack of centralization, any information about prices of Digital Currencies provided at the Site may not correspond to the prices of your actual trade, order or transaction and may not necessarily be the same.
- You acknowledge and agree that you shall access and use the Services at your own risk. You should, therefore, carefully consider whether using the Services and trading in Digital Currencies is suitable for you in light of your circumstances, knowledge, expertise and financial resources.
- The trading of Digital Currencies is often susceptible to irrational (or rational) bubbles and is vulnerable to fluctuations in the level of confidence of market participants, which could collapse demand relative to supply.
- Your Digital Currencies could as well be freezed, seized or lost and your account may be restricted, suspended, terminated and not accessible to you leading to a total loss of your Digital Currencies in your account and losses beyond your Digital Currencies.
- If you use any third party financing for trading Digital Currencies you accept the risk of not being able to repay that financing.
- You must know all of the terms of any contracts you enter and how your trading strategies and other market and risk factors can affect you financial obligations.
- Choosing any of the trading options available at the Site may not necessarily limit your losses to the intended amounts or at all. Any trading option may not be less risky than any other trading option.
- We, at our own discretion, without prior notice and liability to you, may choose not to operate the Site on certain days or periods of time. This may result in you either not completing your trades, orders or transactions on a specific trading day or completing your trades, orders or transactions for a substantially less favourable price.
- Your trades, orders or transactions may be suspended or prohibited at any time due to the enactment or modification of applicable laws, regulations and regulatory documents, as well as on demand by law enforcement or other authorities.
- At any time any Digital Currency listed at the Site is subject to delisting and may be unsupported without notice or your consent. In such event all your trades, orders or transactions will be immediately closed.
Legal and Statutory Protection Risks:
- Digital Currencies and the Services currently are not governed by any specific regulatory framework. This means that there is no government institution or central bank that can supervise Digital Currencies, the Services or the market.
- When using Digital Currencies and/or the Services you will not benefit from the protections available to users receiving traditional regulated financial products or services such as the access to government authorities for dispute resolution, investment insurance or compensation schemes.
- Your account (including wallet functionality) at the Site is not a bank account, payment account, electronic money account or interest bearing account and it cannot be associated with these types of accounts and their benefits, including, but not limited to, payment of interest, protection by law, deposit and investment insurance.
- Digital Currencies do not represent deposits and are not subject to any statutory insurance or guarantees. In the event of our insolvency or any third party associated with us there will be no protection in place to recover your losses on Digital Currencies.
Digital Currency Protocols and Blockchain Risks:
- The Site, the Services and Digital Currencies are based on blockchain technologies and protocols, including, but not limited to, the Bitcoin and the Ethereum protocols. Any malfunction, failure, mistake, error, breach, breakdown, forking, abandonment, unintended function, unexpected functioning of or attack on any blockchain or protocol used may cause the Site and/or the Services to malfunction or function in an unexpected or unintended manner and may have a material adverse effect on your Digital Currencies.
- The majority of the blockchains and protocols rest on an open-source software and are open source projects supported by the community. We do not lead the development, marketing, operation or otherwise control of any such blockchain or protocol. Anybody may develop a patch or upgrade of the source code of the blockchain's or the protocol's source without prior authorization of anyone else. The acceptance of the blockchain's or the protocol's patches or upgrades by a significant, but not overwhelming, percentage of the users could result in a "fork" in the blockchain, and consequently the operation of two separate networks and will remain separate until the forked blockchains are merged. The temporary or permanent existence of forked blockchains could adversely impact the operation and the market value of the corresponding Digital Currency and in the worst-case scenario, could ruin the sustainability of it. While such a fork in the blockchain would possibly be resolved by community-led efforts to merge the forked blockchains, the success is not guaranteed and could take long period of time to achieve.
- The source code of any blockchain or protocol and the software used by us could be updated, amended, altered or modified from time to time by the developers and/or the community of the blockchain or protocol. Nobody is able to foresee or guarantee the precise result of such update, amendment, alteration or modification. As a result, any update, amendment, alteration or modification could lead to an unexpected or unintended outcome that adversely affects the Services, Digital Currencies or market value.
- Anyone may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructural elements of blockchains and protocols used by us. This could consequently result in the loss of your Digital Currencies.
- Digital Currency transactions will be held for a certain period of time until an adequate amount of trade confirmations have been received. There is a possibility that your trade, order or transaction may be cancelled on the Digital Currency network.
- Advances in cryptography, such as code cracking or technical advances such as the development of quantum computers, could present risks to your Digital Currencies and/or value of any blockchains and protocols. This could result in the theft, loss, disappearance, destruction or devaluation of any of your Digital Currencies. It is impossible to predict the future of blockchains, protocols, cryptography or the future of security innovations to an extent that would permit us or any other entity accurately guide the development of Digital Currencies, blockchains and protocols to take into account such unforeseeable changes in the domains of cryptography or security.
- Digital Currencies are decentralized and unregulated digital assets. They neither have a centralized issuer, nor an institution in control of its supply, value or turnover.
- Digital Currencies are not backed by banks and government entities, or backed up by commodities, such as silver or gold. Instead, Digital Currencies are backed only by technology and trust, and currently, there is no bank or government regulator that can take corrective measures to protect the value of Digital Currencies in a crisis, issue more currency, or balance the price fluctuations.
- The circulation and trading of Digital Currencies on the market depends on the consensus on its value between the relevant market participants. Digital Currencies are primarily used by speculators, and are used relatively less on retail and commercial markets.
- Nobody is obliged to redeem or purchase any Digital Currency from any user or holder of such Digital Currency, nor does anyone guarantee the liquidity or market price of any Digital Currency to any extent.
Internet and Systems Risks:
- We cannot guarantee the Site, the Services, Internet connections, networks, systems, hardware and/or software used by us to be flaw-free and/or uninterrupted. These elements may contain certain flaws, errors, defects and bugs, which may disable some functionality for users, delay or fail your trades, orders or transactions, expose your information or otherwise. Such flaws would compromise the usability and/or security of the Site, the Services and your Digital Currencies, and consequently bring adverse impact on the value of your Digital Currencies and/or result in the partial or complete loss of your Digital Currencies, inability to use your Digital Currencies and/or lack of usefulness of your Digital Currencies.
- Also, due to the nature of Digital Currencies, any technological difficulties experienced by us or any associated third parties could potentially prevent the access or use of your Digital Currencies.
- The technologies and systems used for developing the Services and/or Digital Currencies are new, unproven and in an early development stage. There is an inherent risk that the technologies and systems used by us or any other third party in the market could be unfit for their intended purpose and/or not have the value or utility expected.
- Your Digital Currency, especially when transferred outside your account at the Site, will be controllable only by the possessor of unique private keys relating to the addresses in which your Digital Currency is held. The theft, loss or destructions of a private key and/or other personal wallet credentials required to access your Digital Currency is irreversible and you may not be able to access your Digital Currency. You are required to safeguard the private keys relating to your own Digital Currency wallets. To the extent such private key is lost, destroyed or otherwise compromised, neither we, nor anyone else will be able to access the related Digital Currency. It will be unrecoverable and permanently lost.
- Any errors or malfunctions caused by or otherwise related to the wallet you choose to receive and store Digital Currencies, including, but not limited to, your own failure to properly maintain or use such wallet, or follow the procedures set forth by the wallet‘s developer, may also result in the loss of your Digital Currencies.
Safety and Fraud Risks:
- Digital Currencies, including, but not limited to, products and services associated with them, are prone to being misused for illegal or fraudulent activities by bad actors due to the anonymity of transactions and you would be adversely affected if law enforcement agencies investigate any alleged illicit activities.
- You understand and accept that hackers or other groups or organisations may attempt to steal your Digital Currencies or otherwise attack, interrupt or cease our business or usage of your Digital Currencies. Such cybercrimes are very difficult to manage and mitigate. This may result in theft or loss or inability to access your Digital Currencies, or may have an adverse impact on the value of your Digital Currencies.
Business Continuity Risks:
- It is possible that the Services or your Digital Currencies will not be used by a large number of individuals, businesses and other organisations and that there will be limited public interest in the creation and development of its functionalities. Such a lack of interest could impact the development of our business.
- Services, as developed, may not meet your expectations. You acknowledge that the Services or any part of the Services may never be fully developed, completed or released.
- The Internet industry is comprised of a number of participants and is subject to rapid change and competition we face from other organisations, some of which may have greater financial, technical and marketing resources. Increased competition could result in under-utilisation of employees, reduced operating margins and loss of market share, especially our first mover status. Any of these occurrences could adversely affect the Services, our business, operating results and financial condition. The possibility remains that the fundamental business model may not achieve any traction due to an existing or new entrant offering a similar solution or that the general public do not see it as part of their future.
- While some of Digital Currencies may have been relatively stable, it is possible that their values may drop significantly in the future, which may deprive us of sufficient resources to continue to operate.