Risk Disclaimer

Last updated: January 01, 2025

1. General Risk Warning

Trading cryptocurrencies involves substantial risk of loss and is not suitable for every investor. The high degree of leverage and volatility in cryptocurrency markets can work against you as well as for you. Before deciding to trade cryptocurrencies, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your initial investment, and therefore you should not invest money that you cannot afford to lose.

2. Market Volatility

Cryptocurrency markets are highly volatile and unpredictable. Prices can fluctuate dramatically within short periods, sometimes by 10%, 20%, or more in a single day. This volatility can result in significant gains or losses. Past performance is not indicative of future results. Historical price movements, trends, or patterns do not guarantee future performance.

Example Scenarios:

  • Bitcoin dropped from $69,000 to $15,000 (78% loss) in 2022
  • Many altcoins have lost 90%+ of their value during market downturns
  • Flash crashes can occur, causing sudden price drops within minutes

3. Regulatory and Legal Risks

Cryptocurrency regulations vary by jurisdiction and are constantly evolving. Changes in laws, regulations, or government policies can significantly impact cryptocurrency prices and your ability to trade. Some countries have banned or restricted cryptocurrency trading entirely. Regulatory actions, such as investigations, enforcement actions, or new restrictions, can cause sudden price declines.

4. Technology and Security Risks

Cryptocurrency platforms and blockchain networks face various technology and security risks:

  • Hacking and Cyberattacks: Exchanges and wallets can be targeted by hackers
  • Smart Contract Bugs: Vulnerabilities in code can lead to loss of funds
  • Network Failures: Blockchain networks can experience downtime or congestion
  • Lost Private Keys: If you lose access to your wallet, your funds may be irrecoverable
  • Phishing and Scams: Fraudulent schemes are common in the cryptocurrency space

5. Liquidity Risks

Not all cryptocurrencies have the same level of liquidity. Low-liquidity assets may be difficult to buy or sell at desired prices, especially during periods of high volatility. Large orders can significantly impact market prices, resulting in slippage. In extreme market conditions, you may not be able to exit your positions at all.

6. Counterparty and Platform Risks

When you trade on Crypto World Market or any cryptocurrency platform, you are exposed to counterparty risk. This includes the risk that:

  • The platform may experience technical issues, preventing you from trading
  • The platform may become insolvent or cease operations
  • Deposits or withdrawals may be delayed or restricted
  • Account access may be suspended due to security concerns or regulatory requirements

7. No Investment Advice

Crypto World Market does not provide investment, financial, tax, or legal advice. Any information, analysis, or content provided on our platform is for informational purposes only and should not be construed as advice. You are solely responsible for your investment decisions. We recommend consulting with qualified financial advisors before making any investment decisions.

8. No Guarantees or Warranties

We do not guarantee:

  • The accuracy, completeness, or timeliness of price data or market information
  • The availability or uninterrupted operation of our platform
  • That your trades will be executed at specific prices or within specific timeframes
  • That you will achieve any particular investment outcome or profit
  • Protection against losses due to market volatility, technical issues, or other factors

9. Leverage and Margin Trading Risks

If you engage in leverage or margin trading (if available), you are exposed to additional risks:

  • Leverage amplifies both gains and losses
  • You can lose more than your initial investment
  • Margin calls may force you to close positions at unfavorable prices
  • Liquidation can occur rapidly during volatile market conditions

10. Tax Implications

Cryptocurrency trading may have tax implications depending on your jurisdiction. You are responsible for understanding and complying with all applicable tax laws. We do not provide tax advice. Consult with a qualified tax professional to understand your tax obligations.

11. Emotional and Psychological Risks

Trading can be emotionally challenging. Fear, greed, and stress can lead to poor decision-making. Many traders experience significant psychological pressure during periods of high volatility or losses. It is important to maintain emotional discipline and avoid making impulsive decisions based on short-term market movements.

12. Scams and Fraudulent Projects

The cryptocurrency industry has numerous scams, fraudulent projects, and Ponzi schemes. Be cautious of:

  • Projects promising guaranteed returns or "get rich quick" schemes
  • Unregistered or unregulated platforms
  • Phishing emails or fake websites impersonating legitimate platforms
  • Pump-and-dump schemes and market manipulation

13. Acknowledgment and Acceptance

By using Crypto World Market, you acknowledge that:

  • You have read and understood this Risk Disclaimer
  • You are aware of the risks associated with cryptocurrency trading
  • You accept full responsibility for your investment decisions and any resulting losses
  • You will not hold Crypto World Market liable for any losses incurred
  • You are trading with funds you can afford to lose

Final Warning

Cryptocurrency trading is highly speculative and involves substantial risk of loss. You should only invest what you can afford to lose. If you are uncertain about the risks or your ability to bear losses, you should seek independent financial advice before trading.

14. Contact Information

If you have questions about the risks of cryptocurrency trading, please contact us:

Crypto World Market Ltd

123 Finsbury Square, London EC2A 1AG, United Kingdom

Email: [email protected]

Company Number: CR254886

FCA Registration: FR900435467