Financial Risk Statement

RISK DISCLOSURE STATEMENT FOR CRYPTOCURRENCY INVESTING

This statement outlines the significant risks associated with investing in cryptocurrencies. Before investing, carefully consider the following risks:

Market Risks

• Cryptocurrency markets are highly volatile and unpredictable, with potential for sudden, dramatic price swings

• Past performance does not guarantee future results

• The value of your investment can fall to zero

• Market manipulation and whale activity can significantly impact prices

Technical Risks

• Cryptocurrencies may face technical issues, including network failures, bugs, or hacks

• Loss or theft of private keys can result in permanent loss of assets

• Smart contract vulnerabilities can lead to loss of funds

• Hardware, software, or connectivity issues may prevent access to your assets

Regulatory Risks

• Government regulations can change suddenly and impact cryptocurrency values

• Cryptocurrencies may become illegal in certain jurisdictions

• Tax laws regarding cryptocurrency transactions may change

• Regulatory actions against exchanges or projects can affect market values

Operational Risks

• Cryptocurrency exchanges may face operational issues, hacks, or insolvency

• Trading platforms may experience downtime during crucial market moments

• Lack of traditional banking protections and insurance coverage

• Risk of permanent loss due to user error in transactions

Security Risks

• Vulnerability to cyber attacks, phishing attempts, and scams

• Risk of malware affecting digital wallets

• Potential for social engineering attacks

• No central authority for dispute resolution or fraud recovery

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Liquidity Risks

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• Some cryptocurrencies may be difficult to sell quickly

• Large sales may significantly impact market price

• Trading volumes can vary dramatically

• Market depth may be insufficient for large transactions

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Investment Warning:

Cryptocurrency investments should only represent risk capital you can afford to lose entirely. Never invest borrowed money or funds needed for living expenses, emergency savings, or retirement. Consider consulting with financial and legal professionals before investing.

This risk statement is not exhaustive and cannot capture all potential risks associated with cryptocurrency investing. New risks may emerge as the technology and market evolve.