Digital Asset Risk Disclosures
Digital assets are a speculative investment and involve a high degree of risk. Investors must have the financial ability, sophistication, experience, and willingness to bear the risks of such an investment, including the potential for a total loss of their investment.
Information provided by iTrustCapital does not constitute investment, tax or legal advice nor is it a solicitation of an offer to buy or sell any digital assets or security or to participate in any investment strategy. An investment in digital assets is not suitable or desirable for all investors.
Investing in digital assets has inherent risks including but not limited to:
- The digital asset market is relatively new and lacks the same level of regulation seen in traditional financial markets. This lack of regulation can lead to increased risks, including a higher potential for fraud and market manipulation.
- Digital assets may lose a substantial portion or all their value.
- The legal and regulatory framework for digital assets is evolving. Changes in laws, regulations, or government policies may adversely impact the legal standing and financial viability of digital asset investments. This includes tax laws, securities regulations, and other financial rules.
- Cryptocurrencies are not legal tender, are not backed by the government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation Protections.
- Transactions in digital assets may be irreversible and losses due to fraudulent or accidental transactions may not be recoverable.
- Digital asset transactions may be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the customer initiates the transaction.
- The value of digital assets may be derived from the continued willingness of market participants to exchange fiat currency for digital assets, which may result in the potential for permanent and total loss of value of digital assets if the market for digital assets disappears.
- There is no assurance that a person who accepts cryptocurrencies as payment today will continue to do so in the future.
- The volatility and unpredictability of the price of digital assets relative to fiat currency may result in a significant or total loss over a short period of time.
- The nature of digital assets may lead to an increased risk of fraud or cyber-attack.
- The nature of digital assets means that any technological difficulties experienced by third parties may prevent the access or use of your digital assets.
The above summary is not a complete list of the risks and other important disclosures involved in investing in digital assets. There may be additional risks that we have not foreseen or identified in our Terms of Use. You should carefully assess whether your financial standing and tolerance for risk are suitable for buying or selling digital assets.