Risk Disclosure Statement
This Risk Disclosure Statement describes some general key risks which virtual currencies are subject to. However, please note that this Statement will not be able to comprehensively disclose all possible risks of dealing with virtual currencies. Kindly read this document carefully before buying, selling or exchanging crypto currencies at BlockBlend.
Document's contents
High price volatility
Legal Risk
Limited Supervision
Irreversible transactions
The blockchains on which Digital Assets operate may temporarily or permanently fork
Dependence of Internet
Unanticipated Risks
Digital Assets transactions (such as transactions defined in the Terms of Use) entails significant risks of financial loss. You should not use Digital Assets that You are not prepared to lose entirely.
This Risk Disclosure Statement discusses some of the principal risks of transactions with Digital Assets, but it does not and cannot describe every risk or consideration involved in holding, trading, buying or engaging in any other Digital Assets transactions.
This Risk Disclosure Statement forms a part of, and utilizes certain terms that are defined in the Terms of Use.
Risks of Digital Assets transaction include, but are not limited to, the following:
High price volatility
The value of Digital Assets is entirely derived by market forces of supply and demand, and they are much more volatile than most of the traditional fiat currencies and commodities.
Legal Risk
The legality of Digital Assets, trading of them, buying of them or possession may not be clear and may vary under the laws of different jurisdictions throughout the world. This mean that the legality of engaging in Digital Assets transaction is not always clear. Whether and on what basis a Digital Asset may constitute property, an asset, or a right of any kind, might vary from one jurisdiction to another. You are responsible for knowing and understanding how the laws applicable to You or your property, rights or assets, limit, regulate, and tax the Digital Assets You use.
Limited Supervision
Most Virtual Assets markets are not regulated or supervised by any relevant authorities. There is no centralized authority or entity that can take measures to protect the value of a Digital Asset in a crisis or adjust its supply.
Irreversible transactions
Due to decentralized nature, transactions with Digital assets may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable. BlockBlend shall process only that Digital Assets which are transferred as a part of a transaction made through the Website or API (or other tools, administered by BlockBlend) to the address, indicated in the course of such transactions. BlockBlend bears no responsibility for any accidental transaction, including but not limited to any transfer to the incorrect or inactive cryptocurrency wallet address, even if such an address has been used for previous User’s transactions. However, BlockBlend upon the User’s request will make every possible effort to support Users with tracking accidental transactions as reasonably dictated by BlockBlend. All the fees charged for amended or returned transactions shall be paid by the User.
The blockchains on which Digital Assets operate may temporarily or permanently fork
Some blockchain networks are powered by open source software. When a modification to that software is released by developers, and a substantial majority of miners consent to the modification, a change is implemented and the blockchain network continues uninterrupted. However, if a change were to be introduced with less than a substantial majority consenting to the proposed modification, and the modification is not compatible with the software in operation prior to its modification, the consequence would be what is known as a “fork” (i.e. a split) of the blockchain. One blockchain would be maintained by the pre-modification software and the other by the post-modification software. The effect is that both blockchains would operate in parallel, but independently. There are examples of such forks occurring in the past and in the future, such a fork could occur again, and affect the viability or value of a Digital Asset. In case of such forks occurring, BlockBlend may incidentally get the “splitted” Digital Assets (Digital Assets that may be created as a result of the fork) from the transaction that is not covered by Terms of Use. BlockBlend shall not be responsible for such “splitted” Digital Assets (tracking such transaction/storage/return or transfer of such assets to the sender) before any User or any party.
Dependence of Internet
There are risks associated with using an internet-based transaction execution software including, but not limited to, the failure of hardware and software. BlockBlend maintains an independent and secure ledger of all transactions to minimize loss, and maintains contingency plans to minimize the possibility of system failure; however, BlockBlend does not control signal power, reception, routing via the internet, configuration of Your equipment or the reliability of Your connection to the Internet. The result of any failure of the foregoing may be that Your transaction is either not executed according to Your instructions, or is not executed at all.
Unanticipated Risks
Digital Assets and blockchain technology are new technology. In addition to these risks, there are other risks associated with Your acquisition, storage, transfer and use of any Digital Asset, including those that we may not be able to anticipate. Such risks may further materialize as unanticipated variations or combinations of these risks.
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