Risk Disclosure Statement
Trading and investing in digital assets (“cryptocurrencies”) entails certain risks. It is important that you fully understand the risks involved before deciding to execute any cryptocurrencies trades that you have adequate financial resources to bear such risks and that you monitor your positions carefully. Cryptocurrency trading involves risk to your capital. You should not invest money that you cannot afford to lose, however you cannot lose more than the equity in your account. This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding and trading cryptocurrencies. Risks include, but are not limited to, the following:
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Market Risk
The market for cryptocurrencies is still new and uncertain. No-one should have funds invested in cryptocurrencies or speculate in cryptocurrencies that they are not prepared to lose entirely. Whether the market for one or more cryptocurrencies will move up or down, or whether a particular cryptocurrency will lose all or substantially all of its value, is unknown. This applies both to traders that are going long and to traders that are shorting the market. Participants should be cautious about holding cryptocurrencies.
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Liquidity Risk
Markets for cryptocurrencies have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade cryptocurrencies or products derived from or ancillary to them. Furthermore, any market for cryptocurrencies may abruptly appear and vanish.
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Legal Risk
The legal status of certain cryptocurrencies may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more cryptocurrencies constitute property, or assets, or rights of any kind may also seem unclear. Participants are responsible for knowing and understanding how cryptocurrencies will be addressed, regulated, and taxed under applicable law.
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Exchange Risk (Counterparty Risk)
Having cryptocurrencies on deposit or with any third party in a custodial relationship has attendant risks. These risks include security breaches, risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold their property for any reason.
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Trading Risk
In addition to liquidity risks, values in any cryptocurrency marketplace are volatile and can shift quickly. Participants in any cryptocurrencies are warned that they should pay close attention to their position and holdings, and how they may be impacted by sudden and adverse shifts in trading and other market activities.
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Settlement Risk
Coin Nerds and its affiliates make absolutely no guarantee on the settlement times of cryptocurrencies and/or fiats, while Coin Nerds operates in a capacity which attempts to optimize settlement times for its clients.
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No Investment Advice
Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice. Coin Nerds shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided. Several federal agencies have also published advisory documents surrounding the risks of cryptocurrencies. For more information see publications from the Canadian Securities Administrators, the Consumer Financial Protection Bureau, the Financial Industry Regulatory Authority and the Securities and Exchange Commission.