Every financial product, asset class or investment has risk. Cryptocurrency (also known as digital tokens, digital coins or crypto(s)) are no different. That is why it is important for customers and strategic partners to be aware of the potential risks present in cryptocurrency. This page provides risks and disclaimers associated with cryptocurrency (such as Bitcoin) and the information on this website.
The cryptocurrency is relatively new and uncertain. Consequently, you should exercise caution when trading and holding digital tokens. You should not invest funds in the cryptocurrency market that you are not prepared to completely lose; i.e., only allocate risk capital to digital tokens. After you take a position in a specific coin (or multiple coins), it is impossible to know whether the coin(s) or the entire market will lose/gain a substantial amount of value resulting in a substantial loss to your portfolio. This is true whether you are long or short the market.
Liquidity refers to the ease at which a certain amount of a given financial instrument (like cryptocurrency) can be traded without it significantly affecting its market price. Liquidity can vary greatly and unpredictably during different market events and environments, thereby affecting the ease of execution of certain orders and causing wild swings in market prices.
The Crypto market is not immune from these liquidity risks. In fact, many digital tokens exhibit lower levels of liquidity than other, more traditional, asset classes. There is no guarantee that there will be an active or liquid market for you to exit a position when you desire, thus potentially leading to substantial losses associated with relatively unattractive or unexpected prices and execution delays.
We make no representations or warranties regarding your ability to trade digital tokens due to thin liquidity levels, execution delays, delisting of tokens, or any other reason.
The legal status of digital coins may not be certain and whether tokens constitute currency, assets, or rights of any kind may be unclear. Consequently, you take sole responsibility for knowing, understanding and abiding by any and all laws associated with the holding, trading, and transferring of digital tokens. This includes taking full responsibility for any and all taxes that you may owe under the applicable laws in your country of residence and/or nationality.
Exchange or Counterparty Risk
Having your cryptocurrency on deposit/custody with an exchange or other third party involves risk. These risks include insolvency risk, security breaches or hacks, contractual breaches, and losses due to technology failure, glitches, etc. Digital token investors or traders should take precaution when allowing a third party to hold their coins for any reason whatsoever.
The prices of digital currencies can change rapidly and unexpectedly, which can lead to substantial trading losses. As a result, please make sure to pay close attention to your cryptocurrency positions and holdings, and how they can be affected by sudden shifts in trading and other market activities. Make sure that your investment objectives and risk tolerance are appropriate for investing in the crypto market. Only commit “risk capital” for this purpose, which is money that you can afford to lose.
The information provided on this website is for educational services only and should not be considered investment advice or a recommendation of any particular security, strategy or investment product. No portion of this content should be construed as an offer or solicitation for the purchase of sale of any security or investment.
None of the testimonials used on this website are indicative of future results. All of the testimonials provided were unsolicited and not representative of all clients. Payment or compensation was not offered to anyone quoted in any of the testimonials provided on this site.
We have taken reasonable measures to ensure that the information provided on this website is accurate; nevertheless, we do not guarantee the accuracy of said information. Furthermore, we will not accept liability for any loss or damage which may arise directly or indirectly from either the website’s content or your inability to access it, as well as for any delays or failure of transmission of any information through this websites.
If you have specific questions about any of the information in this section or in any other section of CryptoPlayhouse.com, please contact us.