Valid from: 2019-07-01
Risk Warning Statement
Thank you for choosing SpectroCoin Loans. When using SpectroCoin Loans you are exposed to certain risks which are explained in this Risk Warning Statement (hereinafter - the "Statement"). Please read this document carefully.
- This Statement provides you with information about the risks associated with the Site and SpectroCoin Loans provided by the Lender.
- Definitions that are not individually specified in the Statement are understood as indicated in the General Terms and Conditions.
- SpectroCoin Loans include products related to Virtual Currencies. Such Services carry a high degree of risk and may not be suitable for every person.
- This Statement provides you with information about the risks associated with SpectroCoin Loans, 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 Virtual 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 Statement.
- In your considerations regarding suitability of the Site and/or SpectroCoin Loans 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 Statement and all other information contained in the General Terms and Conditions (including its annexes) and other information published on the Site before using the Services. Therefore, by accessing the 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 SpectroCoin Loans and/or this Site.
- The market for Virtual Currencies is decentralized, 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 to sell, buy, trade or perform other transactions with Virtual Currencies.
- The market for Virtual 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 Virtual Currency or the market itself may lose all of its value.
- The market information relating to the past performance of Virtual Currency transactions is not necessarily a guide to its performance in the future.
Price and liquidity risks
- The market for Virtual 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. The lender cannot and does not guarantee any market liquidity or value for any Virtual Currency listed at the Site currently or in the future. You must understand that the current value or price of any Virtual Currency can drop as low as zero at any point.
- There is a high chance that under certain market conditions you or us will find it difficult or impossible to liquidate your Virtual Currencies.
- By using the Services you may lose all of your funds and/or Virtual Currencies and also incur losses beyond such funds and/or Virtual Currencies. No one should have funds invested in Virtual Currencies or trade or otherwise transact in Virtual Currencies that he is not prepared or cannot afford to lose entirely.
- The prices of Virtual Currencies are highly speculative and susceptible to market manipulation. Virtual 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 Virtual Currency's value.
- Due to different regulatory requirements in different jurisdictions, the liquidity of your Virtual Currencies may be markedly different in different jurisdictions.
Legal and regulatory risks
- Virtual Currencies are unregulated and cannot be considered as official government-backed currency. The legal status of Virtual Currencies is uncertain and undefined and is subject to change under different jurisdictions.
- You must understand that the legality of having or trading Virtual Currencies is not clear and may not be clear in the future. Depending on your jurisdiction any of your Virtual Currencies may constitute the property, asset, security, means 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 Virtual Currency may be prohibited or restricted and you may not be well informed about the Virtual 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 Lender‘s jurisdiction, may apply existing regulations on or introduce new regulations addressing Virtual Currencies and/or SpectroCoin Loans, which may result in substantial modifications of the Services, including the potential loss of your Virtual Currencies and their value. Furthermore, such jurisdictions may make it illegal to operate in such jurisdiction and/or use Virtual Currencies or make it commercially undesirable to obtain the necessary regulatory approvals to operate in such jurisdictions.
- Virtual Currencies are being or may be, scrutinized by the regulatory authorities of various jurisdictions. Lender 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 the Services provision to you, as well as be impacted by one or more regulatory inquiries or regulatory actions, which could impede or limit the ability of the Lender to further conduct its business. The development, marketing, promotion of Lender and/or the Services may be seriously affected, hindered or terminated as a result.
- Due to uncertain status of Virtual 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 Virtual Currency transactions are irreversible and for the most part, are anonymous. It may be difficult if not impossible to identify the counterparty of your transaction.
- Lender may choose to provide the Services via third parties. Such third parties may not be regulated entities, lose your funds or Virtual Currencies, become insolvent, suffer security or contractual breaches and may not provide any legal protection in regard to your funds or Virtual Currencies, or losses arising from any funds or Virtual 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 Virtual Currency.
- Lender, in its 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 or transactions on a specific day or completing your transactions at a substantially less favorable price.
- Your 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 Virtual Currency listed at the Site is subject to delisting and may be unsupported without notice or your consent. In such event all your transactions will be immediately closed.
Legal and statutory protection risks
- Virtual 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 Virtual Currencies, SpectroCoin Loans or the market.
- When using Virtual Currencies and/or the Services you will not benefit from the protections available to users receiving traditional regulated financial products or services such as 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.
- Virtual Currencies do not represent deposits and are not subject to any statutory insurance or guarantees. In the event of insolvency of the Lender or any third party associated with the Lender, there will be no protection in place to recover your losses on Virtual Currencies.
Virtual currency protocols and blockchain risks
- SpectroCoin Loans are mainly related to Virtual Currencies which 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 Virtual Currencies.
- The majority of the blockchains and protocols rest on open-source software and are open source projects supported by the community. Lender does not lead the development, marketing, operation or otherwise, has 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 Virtual 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 a long period of time to achieve.
- The source code of any blockchain or protocol and the software used by the Lender for SpectroCoin Loans 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 an 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 SpectroCoin Loans, Virtual Currencies or market value.
- Anyone may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructural elements of blockchains and protocols used by the Lender. This could consequently result in the loss of your Virtual Currencies. network.
- Advances in cryptography, such as code cracking or technical advances such as the development of quantum computers, could present risks to your Virtual Currencies and/or value of any blockchains and protocols. This could result in the theft, loss, disappearance, destruction or devaluation of any of your Virtual Currencies. It is impossible to predict the future of blockchains, protocols, cryptography or the future of security innovations to an extent that would permit the Lender or any other entity accurately guide the development of Virtual Currencies, blockchains, and protocols to take into account such unforeseeable changes in the domains of cryptography or security.
Internet and systems risks
- Lender cannot guarantee the Site, the Services, Internet connections, networks, systems, hardware and/or software used by the Lender 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 Virtual Currencies, and consequently bring adverse impact on the value of your Virtual Currencies and/or result in the partial or complete loss of your Virtual Currencies, inability to use your Virtual Currencies and/or lack of usefulness of your Virtual Currencies.
- Also, due to the nature of Virtual Currencies, any technological difficulties experienced by the Lender or any associated third parties could potentially prevent the access or use of your Virtual Currencies.
- The technologies and systems used for developing SpectroCoin Loans and/or Virtual Currencies are new, unproven and in an early development stage. There is an inherent risk that the technologies and systems used by the Lender 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 Virtual Currency, especially when transferred outside your account at the Site, will be controllable by the possessor of unique private keys relating to the addresses in which your Virtual Currency is held. The theft, loss or destruction of a private key and/or other personal wallet credentials required to access your Virtual Currency is irreversible and you may not be able to access your Virtual Currency. You are required to safeguard the private keys relating to your own Virtual Currency wallets. To the extent, such private key is lost, destroyed or otherwise compromised, neither Lender, nor anyone else will be able to access the related Virtual 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 Virtual 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 Virtual Currencies.
Safety and fraud risks
- Virtual Currencies, including, but not limited to, products and services associated with them, are prone to be 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 organizations may attempt to steal your Virtual Currencies or otherwise attack, interrupt or cease the Lender‘s business or usage of your Virtual Currencies. Such cyber crimes are very difficult to manage and mitigate. This may result in theft or loss or inability to access your Virtual Currencies or may have an adverse impact on the value of your Virtual Currencies.
Business continuity risks
- It is possible that SpectroCoin Loans will cease to be used by a large number of individuals, businesses and other organizations and that there will be limited public interest in the creation and development of additional functionalities. Such a lack of interest could impact the development of SpectroCoin Loans.
- SpectroCoin Loans, 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 to meet your individual expectations.
- The Internet industry is comprised of a number of participants and is subject to rapid change and competition SpectroCoin Loans faces from other organizations, some of which may have greater financial, technical and marketing resources. Increased competition could result in under-utilization of employees, reduced operating margins and loss of market share. Any of these occurrences could adversely affect SpectroCoin Loans, the Lender‘s business, operating results, and financial condition. The possibility remains that the fundamental business model may lose the traction due to an existing or new entrant offering a similar solution or that the general public does not see it as part of their future.
- While some of the Virtual Currencies may have been relatively stable, it is possible that their values may drop significantly in the future, which may deprive SpectroCoin Loans of sufficient resources to continue to operate.