This Risk Disclosure Statement provides you with information about some of the risks associated with use of the “Coinomo” websites and application (“Investment Platform”) and other services offered by Coinomo. The information presented in this Risk Disclosure Statement is not comprehensive and does not reflect all of the risks (or other important factors) you should consider before using the Services. You must make your own independent decision to access or use the Services and should seek any advice that you consider necessary or desirable (including financial and/or legal advice) from independent advisers. Your capital is at risk. Terms not otherwise defined in this Risk Disclosure Statement shall bear the same meanings attributed to them in the Terms of Service.
A. General trading and financial risks
- Trading risk
- Accuracy of information
- Price volatility
- Liquidity risk
- Deposits of fund
- Support of traded contracts
B. Regulatory and Oversight Risk
- General regulatory risk
C. Cyber Risk
- Risks relating to cybersecurity
- Risks relating to platform downtime and IT maintenance
D. Access risks
E. Counterparty Risks
A. General trading and financial risks
1. Trading risk
You use the Services at your own risk. There can be no assurance that use of the Services will provide a positive return or profit, that significant losses will not be incurred, or that your objectives will be achieved. All contracts traded on the Trading Platform are margined and settled using digital assets, such as bitcoin.
It is also important to have sufficient relevant experience when entering into financial contracts and transactions. Contracts traded on the Investment Platform may include derivative contracts and are not suitable for everyone. You should only fund your wallet and invest the amount with digital assets that you own and can afford to lose. It is possible that you may lose a substantial proportion or all of your capital. In addition, use of our Services involves a high risk of loss inherently associated with the contracts that are available for trading. As a result, you should carefully consider whether you can afford to bear the risks of loss involved in using the Services and, in particular, trading cryptocurrency derivatives contracts.
The Investment Platform is designed so that the maximum risk associated for any Member with respect to an investment on the Investment Platform shall not exceed the actual amount of investment.
2. Accuracy of information
While Coinomo endeavours to keep information displayed on the Services as accurately as possible, there is a risk that this may not be correct, complete or updated.
3. Price & Yield volatility
The price of cryptocurrencies can be highly unpredictable and volatile when compared to other assets such as stocks, bonds and other tradeable instruments. The yield and other investment products may include derivatives and other customary trading products and are subjected to price volatility and yield volatility.
4. Liquidity risk
Cryptocurrency derivatives (including those used by the investment products featured on Coinomo) may be riskier, less liquid, more volatile and more vulnerable to economic, political, market, industry, regulatory and other changes than other derivatives contract types. The liquidity of the market for contracts used by Coinomo Yield Products will depend on, among other things, supply and demand and the commercial and speculative interest in the market for these contracts.
A lack of liquidity in any market for contracts, may result in lack of supply of products on the Investment Platform and may result in delays in order execution and some orders may not execute at all; these effects may be exacerbated where an order is larger.
Coinomo reserves the rights to decide the sequence of order fulfilment. VIP accounts might be fulfilled before non-VIP accounts.
5. Deposits of fund
The digital assets that you transfer to the deposit address(es) associated with your account(s) will not be segregated from, and may be commingled with, other client funds; there are no trust, fiduciary, or other custodial arrangements or rights associated with or applicable to the Services and your wallet balances (including deposits, any realised profits, affiliate income and/or fees) and you do not have any proprietary claim in respect of any digital assets transferred to Coinomo or any wallet balance. There are no deposit protection schemes that are applicable to the Services and your wallet balances are uninsured unless you specifically obtain third party private insurance with respect to them. Your wallet balance is at risk of total loss, from, among others things, security breaches (whether in respect of your accounts specifically or the Services generally), electronic, technological or systems failures (including book- or recordkeeping errors), and insolvency or bankruptcy, or equivalent formal proceedings, in respect of Coinomo.
It is your responsibility to ensure that you use the correct address for any deposit, withdrawal, or transfer, and that the address you use is a valid address for the digital asset that you intend to transfer and that Coinomo accepts as a deposit. Any inaccuracy in a specified address, or in the digital asset that you attempt to transfer between addresses, may result in total loss of the digital assets concerned.
Any digital assets transferred to or between your account(s) will only be available for investment or withdrawal purposes when it has been credited to your account. Digital assets may be credited to your account after one or more block confirmations in respect of the relevant blockchain, according to our policies and procedures from time to time, and Coinomo reserves the right to determine in its sole discretion whether to credit any transfer of digital assets to your account. The period between block confirmation and account credit is variable and depends on a number of factors, including factors that are not within our control. We do not offer any assurance or guarantee in relation to the timeframe for a deposit or transfer to be credited or for a withdrawal to be broadcast and confirmed. For example, deposits, transfers, and/or withdrawals may not be credited or may be delayed if: there are delays, high demand, or technological issues affecting the relevant network; you have allocated a network fee to the transaction that is insufficient to ensure that your transaction is confirmed according to your expectations (any network fee that we may deduct or our recommended network fee for withdrawals is not a recommendation or assurance in respect of the processing time of any transaction(s)); variation in the processing time in our systems, which may be increased by high demand, technological issues or other conditions that impact processing time; if we believe that you are engaged in any suspicious activity or a breach of our Terms of Service. You may be at risk of loss if a deposit is not credited to your account and you are unable to manage the risk of a position or open order.
The protocol underlying a digital asset may change or otherwise cease to operate as expected due to changes made to its underlying technology or changes resulting from an attack. These changes may include, without limitation, a “fork”, a “rollback”, an “airdrop”, or a “bootstrap”. Any such change, or any failure in any applicable protocol, may dilute the value of your digital asset(s). Coinomo will not support any such change (unless Coinomo chooses to do so in Coinomo’s own discretion) and any asset (or other digital token or asset) that you may expect to be distributed or transferred to you in respect of any wallet balance may not be credited to your account or transferred to you, resulting in a loss of, without any right to claim or request compensation for, that asset.
6. Support of traded contracts
If at any time any of the contracts that form the subject of your order is delisted or the Investment Platform no longer supports the trading in such contract for any reason, then the applicable order will be cancelled.
B. Regulatory and Oversight Risk
1. General regulatory risk
The regulatory environment concerning cryptocurrencies and other digital assets continues to develop. The application and interpretation of existing laws and regulations are often largely untested and there is a lack of certainty as to how they will be applied. New laws and regulations will be promulgated in the future that apply to blockchain technology and digital assets, and related services providers, and no assurance can be given that any such changes will not adversely affect digital assets generally or the Services. It is not possible to predict how such changes would affect the price and liquidity of cryptocurrency derivatives, digital assets generally, or the Services.
Regulatory actions could negatively impact cryptocurrencies and other digital assets in various ways, including, for purposes of illustration only, through a determination (with retrospective or prospective effect) that cryptocurrencies or their derivatives are regulated financial instruments requiring registration or licensing in certain jurisdictions. Coinomo may have to limit the availability of certain contracts or disallow Members based on their citizenship, residence or location from engaging in any transactions on the Trading Platform if doing so becomes commercially unsustainable or legally prohibited, which could materially affect the price and liquidity of contracts traded on the Trading Platform.
You understand that ultimately it is your responsibility to make sure that you comply with any and all local regulations, directives, restrictions and laws in your place(s) of residence before using our Services. We strictly state that we do not permit the use of our Services by users from a jurisdiction in which the use of our Services is not permitted (including, without limitation, Restricted Jurisdictions). We are not offering or soliciting the use of our Services to any person located in any Restricted Jurisdiction or any other jurisdiction in which the specific use of our Services is not authorised or is otherwise prohibited by local laws.
C. Cyber Risk
1. Risks relating to cybersecurity
Malicious individuals, groups or organisations may attempt to interfere with the Trading Platform in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, coordinated attacks, account takeovers and submitting fake transactions (including spoofing) which could negatively affect the operation of the Trading Platform, the availability of the Services and the value of contracts traded on the Trading Platform.
With the increased use of technologies and the dependence on computer systems to perform necessary business functions, digital assets and the Services are susceptible to operational and information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyberattacks include but are not limited to gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyberattacks may also be carried out in a manner that does not require gaining unauthorised access, such as causing denial of service attacks on infrastructure. Cyber security failures or breaches of the third party service providers (including, but not limited to, software providers, cloud services providers, index providers, the administrator and transfer agent) could have a negative impact on digital assets and the Services.
It is your responsibility to ensure (i) that your access credentials are kept secure and confidential, including your email, username, and password, as well as access to or use of any two factor authentication hardware, software, or secret and (ii) the security and integrity of any systems (both hardware and software) or services that you use to access the Services.
2. Risks relating to platform downtime and IT maintenance
Coinomo may, from time to time, perform maintenance on the Trading Platform, routine or otherwise. This may lead to platform downtime and lack of access to the Trading Platform, potentially resulting in a delay or cancellation of a submitted order yet to be processed and orders placed during maintenance or downtime.
D. Access risks
There are a series of inherent risks with the use of the mobile and/or web-based trading technology such as latency in the prices provided, and other issues that are a result of connectivity (including, without limitation, the use of mobile networks). Prices displayed on the Investment Platform are solely an indication of the executable rates and may not reflect the actual executed or executable price of an order.
The Investment Platform utilises public communication network circuits for the transmission of messages. Coinomo shall not be liable for any and all circumstances in which you experience a delay in price quotation or an inability to trade caused by network transmission problems or restrictions or any other problems outside our direct control, which include but are not limited to the strength of the mobile signal, network latency, or any other issues that may arise between you and any internet service provider, phone service provider or any other service provider. Please note further that some of the features available on the Trading Platform may not be available on any mobile application.
Coinomo mobile applications may require Members to download and install updates to the application or to their device’s operating system as such updates are made available. Failure to do so might lead to certain parts of the Services (including trading functions) becoming inaccessible to Members until such update has been successfully downloaded and installed. Performance issues and security risks may arise if Coinomo mobile applications are used on devices with customised or otherwise non-standard operating software or as a result of other software installed on such devices.
E. Counterparty Risks
The products, tokens and other investment assets offered on Investment Platform may involve trading against a counterparty, or products and services provided by counterparty. Even though, Coinomo endeavors to assess and mitigate risks involved in counterparty, Coinomo cannot eliminate all risks involved with counterparty. Counterparties’ operations, algorithms, vault securities all may present potential risks and may result in loss of assets or funds by Coinomo customers.