This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in Contract for Differences (“CFDs”). The notice was designed to explain in general terms the nature of the risks involved when dealing in CFDs and to help you take investment decisions on an informed basis. The Client should consider carefully whether trading in the financial instruments of CFDs is suitable for him/her in the light of his/her circumstances and financial resources. In considering whether to engage in this form of trading, the Client should be aware of the following:
It is emphasized that for many members of the public dealings in CFDs will not be suitable. The Client should not engage in any dealings directly or indirectly in CFDs unless he/she knows and understands the features risks involved in them.
Unlike most currencies, which are backed by governments or other legal entities, or by commodities such as gold or silver, Bitcoin is a unique kind of digital asset, backed by technology and trust. There is no central bank that can take corrective measure to protect the value of Bitcoins in a crisis or issue more currency. Instead, Bitcoin is an as-yet autonomous and largely unregulated worldwide system of firms and individuals. Considering above mentioned information, Bitcoin formally cannot be deemed as a currency and is most commonly labelled a commodity. The following whilst referencing Bitcoin can apply to all forms of cryptocurrency.
Traders in Bitcoins put their trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity.
Confidence of the Traders in Bitcoins might collapse as a result of unexpected changes imposed by the software developers or others, a government crackdown, the creation of superior competing alternative currencies, or a deflationary or inflationary spiral. Confidence might also collapse because of technical problems: if the anonymity of the system is compromised, if money is lost or stolen, or if hackers or governments are able to prevent any transactions from settling.
Without prejudice to Risk Warning investing in Bitcoins involves particular risks in particular (but not limited to) specified herein below:
Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner’s hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible.
Some investments are insured through the Securities Investor Protection Corporation (or other), like normal bank accounts, which are insured through the Federal Deposit Insurance Corporation (or other) up to a certain amount depending on the jurisdiction. Bitcoin exchanges and Bitcoin accounts are not insured by any type of federal or government program.
While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false Bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.
Like with any investment, Bitcoin values can fluctuate. Indeed, the value of Bitcoin has seen wild swings in price over its short existence. If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless.
Bitcoins are a rival to government currency and may be used for black market transactions or tax evasion. Governments may seek to regulate, restrict or ban the use and sale of Bitcoins.
Some governments have already put this into practice. The IRS has already announced that it treats Bitcoin as property for federal tax purposes. As Bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments in Bitcoin from taxation.
There may be additional risks that CryptoRocket (“the Company”) has not foreseen or identified in this Bitcoin Risk Warning. Customer should carefully assess whether his or her financial situation and tolerance for risk is suitable for buying, selling or trading Bitcoins.
Trading in the products and services of CryptoRocket hereinafter referred to collectively as the “Company”), may, even if made in accordance with a recommendation, result in losses as well as profits. In particular trading in leveraged products, such as but not limited to, foreign exchange, derivatives and commodities can be very speculative and losses and profits may fluctuate both violently and rapidly.
Any mentioning, if any, in a publication of the risks pertaining to a particular product or service may not and should neither be construed as a comprehensive disclosure nor full description of all risks pertaining to such product or service and the Company strongly encourages any recipient considering trading in its products and services to employ and continuously consult suitable financial advisors prior to the conclusion of any investment or transaction.
The Company does not in any of its publications take into account any particular recipient’s investment objectives, special investment goals, financial situation, and specific needs and demands. Therefore, all publications of the Company are, unless otherwise specifically stated, intended for informational and/or marketing purposes only and should not be construed as:
Business, financial, investment, hedging, legal, regulatory, tax or accounting advice, a recommendation or trading idea, or any other type of encouragement to act, invest or divest in a particular manner (collectively “Recommendations”).
The Company shall not be responsible for any loss arising from any investment based on a perceived Recommendation.
The Company uses reasonable efforts to obtain information from reliable sources, but all publications are provided on an “as is” basis without representation or warranty of any kind (neither express nor implied) and the Company disclaims liability for any publication not being complete, accurate, suitable and relevant for the recipient. Specifically, the Company disclaims liability towards any subscriber, client, partner, supplier, counterparty and other recipients for the accuracy of any market quotations, any delay, inaccuracy, error, interruption or omission in providing market quotations, and any discontinuance of market quotations.
The publications of the Company are not updated after their release and will due to changing circumstances become inaccurate and possibly misleading after a period of time which may be vary from seconds and minutes to days, weeks and months depending on the Information. The Company gives no guarantee against, and assumes no liability towards any recipient for, a publication being outdated.
If a publication becomes outdated the Company shall be under no obligation to update the publication, inform the recipients of a publication, or perform any other action.
Any publication may be personal to the author and may not reflect the opinion of the Company. The Company reserves the right at its sole discretion to withdraw or amend any publication or information provided at any time without notice (prior or subsequent).
There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since the Company does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. The Company employs backup systems and contingency plans to minimize the possibility of system failure, and trading via telephone is available.
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