Date last revised: May 04, 2022
By using the Services via the Platform you are exposed to certain risks which are explained in this Risk Statement (hereinafter – the “Statement“). The Statement is directly related to UAB Datause, a virtual currency exchange and depository virtual currency wallet service provider, supervised by the Financial Crime Investigation Service of Lithuania, incorporated under the laws of Lithuania (referenced herein as “us”, “our” or “we”) Terms of Service (hereinafter – the “Agreement“). The Agreement, the Statement and other related documents form an integral part of the Agreement, together constituting one document, which is legally binding to you. Please read this document carefully.
- This Statement provides you with information about the risks associated with our Services, which may be provided by us or our partners. Notably, such Services carry a high degree of risk and may not be suitable for every person (be it legal entity or natural person).
- This section provides you with a general information about the risks associated with the Services. However, such information cannot and does not explain and disclose all of the risks or other circumstances involved in using the Services. Such information does not also explain and disclose how such risks relate to your personal circumstances, financial standing and tolerance for risk. The risk information provided in this risk profile should not be construed as a comprehensive and ultimate assessment of the risks associated with the Services. There may be additional risk factors that are not listed in this Statement due to the fact that we are not aware of them or consider them insignificant at the time of publishing the Statement.
- The decision to use our Services should not be made solely on the basis of the following risk factors.
- The following risks shall be considered when using our Services:
4.1 Price and Liquidity Risk. The market for digital assets (i.e., digital currencies etc.) has varying degrees of liquidity and a history of extreme volatility in terms of both price and liquidity. There is never a guarantee that the market will be liquid. We cannot and do not guarantee any market liquidity or value for any digital currently in the future. You must understand that the current value or price of any digital asset can drop as low as zero at any point;
4.2. Digital Currencies Risk. Digital currencies are backed by technology and trust. Digital currencies are decentralized and unregulated digital assets. They neither have a centralized issuer, nor an institution in control of its supply, value or turnover. They are generally not legal tender and are not backed by governments. The circulation and trading of digital currencies on the market depends on the consensus on its value between the relevant market participants. Digital currencies are primarily used by speculators, and are used relatively less on retail and commercial markets;
4.3 Market Risk. The market of digital assets is decentralized, unregulated, new, unconfirmed and uncertain. The market is determined by demand and supply only. It will not necessarily expand or evolve. Moreover, it may abruptly cease to exist. Therefore, there is never a guarantee that there will be an active market for you to sell, buy, trade or perform other transactions with digital assets. The market information relating to the past performance of Virtual Currency transactions is not necessarily a guide to its performance in the future;
4.4 Internet and Systems Risk. There are inherent defects in electronic distribution and data transmission over the internet which may result in delays, omissions, transmission blackouts, interruptions, breaches of security, corruption, unavailability of access in connection with the Services. The Services and digital currencies are based on blockchain technologies and protocols. Any malfunction, failure, mistake, error, breach, breakdown, forking, abandonment, unintended function, unexpected functioning of or attack on any blockchain or protocol used may cause Services to malfunction or function in an unexpected or unintended manner and may have a material adverse effect on your receiving payment in digital currencies;
4.5 IT Security Risk. The Services and digital currencies are based on blockchain technologies and protocols, which are subject to the risk of cyber-attacks, malicious software and other computer viruses with destructive features such as computer worms, Trojan horses or spyware;
4.6 Legal and Regulatory Risk. Digital assets as well as digital currencies are unregulated and cannot be considered as official government backed currency or asset. The legal status of digital assets and digital currencies is uncertain and undefined, and is subject of change under different jurisdictions. Certain jurisdictions, including, but not limited to, your and our jurisdiction, may apply existing regulations on or introduce new regulations addressing digital assets or digital currencies and/or the Services, which may result in substantial modifications of the Services, including potential loss of your digital assets or digital currencies and their value. Furthermore, such jurisdictions may make it illegal to operate in such jurisdiction and/or use digital assets and / or digital currencies or make it commercially undesirable to obtain the necessary regulatory approvals to operate in such jurisdictions;
4.7 Third Party / Counterparty Risk. Some of the Services may be provided via third parties, including third party digital currency exchanges (the “Digital Currency Exchange”). There is a risk that relations with Digital Currency Exchanges and other partners may break, therefore there is a possibility of disruption in the Services continuity. Also, such third parties may lose your funds or digital currencies, may become insolvent, may suffer security or contractual breaches and may not provide any legal protection in regards to your funds or digital currencies. We shall not be liable to any extent for the inaction, damages or other losses that you may incur due to reasons related to the third parties;
4.8 Digital Currency Protocol Risk. We do not own or control the underlying software protocols which govern the operation of digital assets / digital currencies supported by Digital Currency Exchange. Generally, the underlying protocols are ‘open source’ and anyone can use, copy, modify, and distribute them. We are not able to guarantee the functionality or security of network operations. You acknowledge and accept the risk that underlying software protocols relating to any digital currency you receive by generating request may change. In particular, the underlying protocols are likely to be subject to sudden changes in operating rules (forks). Any such material operating changes may materially affect the availability, value, functionality, and/or the name of the digital currency you are receiving by request generated;
4.9 Safety and Fraud Risk. Digital assets and digital currencies, including, but not limited to, products and services associated with them, are prone to being misused for illegal or fraudulent activities by bad actors due to the anonymity of transactions and you would be adversely affected if law enforcement agencies investigate any alleged illicit activities. You understand and accept that hackers or other groups or organizations may attempt to steal your digital assets / digital currencies or otherwise attack, interrupt or cease our business or usage of your digital assets / digital currencies;
4.10 Payment Rejection Risk. There is a risk that digital assets related payment may be rejected due to non-compliance with AML regulations and / or our compliance requirements. Accordingly, such digital assets related payment would be sent back to initial payer by deducting all transaction fees. Notably, the fees, applicable to reversible transaction, may substantially differ from the fees, applicable for incoming payment;
4.11 Business Continuity Risk. It is possible that the Services or your digital assets will cease to be used by a large number of individuals, businesses and other organisations and that there will be limited public interest in the creation and development of additional functionalities. Our Services, as developed, may not meet your expectations. You acknowledge that the Services or any part of the Services may never be fully developed, completed or released to meet your individual expectations. The Internet industry is comprised of a number of participants and is subject to rapid change and competition we face from other organisations, some of which may have greater financial, technical and marketing resources. Increased competition could result in under-utilisation of employees, reduced operating margins and loss of market share.
4.12 Other Risks. There may be other risk factors (other than those mentioned above) independent of us that may have a negative impact on the overall provision of Service.
- The above list does not identify risks that may be additionally associated with the usage of a third party’s websites / platforms or services therefore it is your responsibility to carefully familiarize yourself with such before starting to use any of services, content or products of a third party.
- In your considerations regarding suitability of the Services for you, you agree to do your own research and carefully consider, assess and evaluate at least each of the following risk factors indicated in this Statement and all other information contained in the Agreement, including with documents, which are related to this Agreement. Therefore, by using the Services you confirm that you undertake and understand all the possible risks that directly or indirectly arise from the activity connected with your use of the Services.