Key Risks

Overview

Engaging in digital asset trading and using related services involves substantial risk. Using UNX Exchange and its services, you confirm that you understand and accept all associated risks. You are solely responsible for compliance with all applicable laws, including but not limited to anti-money laundering (AML), counter-terrorism financing (CTF), sanctions, taxation, foreign currency transactions, reporting, and disclosure obligations.

General Risks

Digital Asset Trading Risks

Digital assets are highly volatile, subject to rapid price fluctuations, regulatory changes, and liquidity constraints. You may experience substantial or total loss of value. Assess your financial condition and seek professional advice before engaging in trading activities.

Regulatory Risks

The legal and regulatory landscape for digital assets is rapidly evolving. Changes in laws, regulations, or directives may impact your ability to use UNX services or access digital assets. UNX is not responsible for any of your losses including the ones resulting from regulatory changes.

Cybersecurity and Technology Risks

UNX Exchange relies on internet and blockchain technologies, which are inherently vulnerable to cyberattacks, technical failures, and other disruptions. There is no guarantee of error-free or uninterrupted service. Use of third-party integrations, smart contracts, or other software introduces additional risks.

Market Risks

Digital assets are subject to extreme market conditions, including price volatility, liquidity shortages, and market manipulation by large holders. UNX does not provide any kind of investment advice, recommendation and all trading decisions are made at your own risk and discretion.

User Responsibility

You must fully understand and accept all risks before using UNX services. Seek professional advice for your financial situation. Losses may occur, and you bear full responsibility for them.

Specific Risk Categories

Digital Asset Risks

  • Not Legal Tender: Digital assets are not backed by governments or physical assets.

  • High-Risk Asset Class: Some jurisdictions do not classify digital assets as securities, and they carry significant risks.

  • Complex Nature: Understanding digital assets requires technical and financial knowledge.

  • Potential Value Loss: Market factors, regulatory changes, or manipulation can cause losses.

  • Limited Availability: Assets may be frozen due to regulatory reasons or technical constraints.

Trading Risks on DApps

  • Market Instability: Digital asset prices are highly volatile.

  • Conversion Risks: Exchanging assets may cause losses due to price changes.

  • No Deposit Protection: Digital assets are not covered by deposit insurance schemes.

  • Lack of Statutory Protection: No government compensation funds protect digital assets.

  • Transaction Fees: Trading incurs fees that may impact profitability.

  • Regulatory Constraints: Cross-border regulations may limit asset availability.

  • Operational Risks: Allowing third parties access to your account increases risk.

  • Network Events: Blockchain forks or failures may affect transactions.

  • Irreversible Transactions: Transactions on blockchain networks cannot be undone.

  • Order Execution Risks: Trades may not execute as expected due to liquidity constraints.

  • Security Updates: Outdated software may expose vulnerabilities.

Cybersecurity and Technology Risks

  • Network Forks & Attacks: Blockchain networks may split or suffer security breaches.

  • Cyber Attacks: Digital assets are targets for hacking and fraud.

  • Technology Reliance: Internet disruptions can impact access to services.

Market Risks

  • Liquidity Risks: Low liquidity may lead to substantial losses.

  • Acceptance Uncertainty: The future adoption of digital assets is uncertain.

  • Regulatory Actions: Government interventions may impact asset value.

  • Inflation Risks: Issuance of new digital assets can dilute existing holdings.

  • Market Manipulation: Large holders may significantly influence prices.

User Errors

  • Loss of Account Access: Losing passwords or recovery information may cause permanent loss.

  • Use of Insecure Devices: Jailbroken or compromised devices increase security risks.

Blockchain Risks

  • Irreversibility: Transactions cannot be reversed once confirmed.

  • Open-Source Vulnerabilities: Security flaws in blockchain technology may be exploited.

  • Advancements in Cryptography: New cryptographic methods could impact blockchain security.

General Risks

  • Jurisdictional Compliance: Laws governing digital assets vary by region.

  • Service-Specific Risks: Understand the risks associated with each UNX service before using it.

  • Taxation: Digital asset transactions may have tax implications and they may vary by region. Seek professional guidance.

  • Regulatory Uncertainty: The treatment of digital assets is subject to ongoing changes.

  • Conflicts of Interest: Platform operators, crypto asset service providers and their stakeholders may have interests that differ from users.

  • Forward-Looking Statements: Predictions about digital asset markets may be inaccurate.

Service-Specific Risks

  • Account Security: You are responsible for safeguarding your login credentials and account access.

  • Third-Party Platforms: Losses arising from third-party services or integrations are not covered by UNX.

  • Password Protection: Failure to secure your account can cause permanent loss of assets.

  • Informed Decision-Making: You must fully understand the risks before engaging with UNX services, if necessary by getting respective advice of professionals.

In light of these risks, as well as additional risks that may arise in the future, you must carefully evaluate whether participation in digital asset trading and use of UNX services is suitable for you – especially in light of your financial situation. The risk disclosure outlined herein is not exhaustive. You must seek professional financial and legal advice before using our services. BY USING UNX SERVICES, YOU ACKNOWLEDGE THAT LOSSES MAY OCCUR RATHER THAN PROFIT MADE AS A RESULT OF PARTICIPATING IN OUR SERVICES, AND YOU ACCEPT FULL RESPONSIBILITY FOR ALL RISKS INVOLVED.

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