Risk Disclosure.

This Risk Disclosure Statement (this “Statement”) applies to the electronic brokerage platform (collectively, the “Platform”) in connection with all services and products offered by Cryptonow GmbH, a company incorporated in the Republic of Austria with its registered office at Marc-Aurel-Str. 10–12, 1010 Vienna, Austria (“Cryptonow”, the “Company”, “we”, “us” or “our”). This Statement forms an integral part of the terms and conditions between the user (the “User”, “you”, “Customer” or “your”) and the Company (the “Agreement”).

All capitalised terms used in this Statement and not otherwise defined herein shall have the meaning assigned to them in the Service Agreement.

By accessing or using the Platform or the Website, you represent and warrant that you fully understand the risks associated with transactions in crypto-assets and with the use of the Platform. You acknowledge that you are solely responsible for determining the nature, potential value, suitability and appropriateness of such risks based on your own circumstances, and that the Company does not provide any advice or recommendations in relation to any crypto-asset, including as to its suitability, appropriateness or any related investment strategies.

You expressly agree and understand that you access and use the Platform and the Website entirely at your own risk and that you also use Cryptonow’s products entirely at your own risk.

This Statement does not disclose all risks associated with cryptocurrencies or with the use of the Platform. You should carefully assess whether such activities are suitable for you in light of your circumstances and financial resources. You should be aware that you may suffer a total loss of the cryptocurrencies in your account and that, under certain market conditions, it may be difficult or impossible to liquidate a position.

1. Risk of Loss of Value, Liquidity and Extreme Volatility

The crypto-assets available on the Platform are determined by the prevailing market price and may therefore be subject to extreme volatility and/or a loss of value, up to and including a total loss of value. Past performance of a crypto-asset is not a guarantee of future results. This type of investment is only suitable for customers who can bear the loss of their entire invested capital and should not be regarded as a source of income. Each customer must carefully assess whether Cryptonow’s products are consistent with their risk tolerance, investment objectives, financial and tax situation, personal and legal circumstances, and other relevant considerations.

2. Risk of Using Blockchain Non-Custodial Wallets

The management of a non-custodial wallet is entirely the responsibility of the customer, including the secure storage of the private key. Damage to or loss of the private key will irrevocably result in the loss of access to the crypto-assets stored in the non-custodial wallet. There is no possibility to recover access or the crypto-assets if the private key is lost or stolen. In addition, there is a risk that unauthorised third parties may gain access to the wallet and the crypto-assets contained therein due to insufficient security measures taken by the customer. Cryptonow strongly recommends implementing secure backups and security precautions in order to minimise the risk of loss.

3. No Financial Advice and No Advice on Crypto-Assets or Crypto-Asset Services

The fact that Cryptonow provides a crypto-asset or a service to the customer does not constitute a recommendation to enter into any particular transaction, nor a representation that any product described on the Website is suitable or appropriate for the customer. Cryptonow does not provide recommendations regarding crypto-assets or crypto-asset services. Customers are solely responsible for making decisions regarding the entry into specific transactions. Customers are likewise solely responsible for deciding whether and which crypto-asset service is suitable. Many of the products involve significant risks, and the customer should not enter into any transaction unless they have fully understood all risks and have independently determined that such a product is suitable for them. The risk disclosures contained in these terms and conditions do not constitute a comprehensive disclosure of all risks. None of the information contained herein should be construed as any form of advice, and in particular does not constitute financial, investment, trading, legal, tax or accounting advice.

4. Risk of Technical Vulnerabilities

The technology underlying crypto-assets and the associated software applications and platforms, such as smart contracts and other involved technologies, are still at an early stage of development and are neither controlled nor influenced by Cryptonow. There is an inherent risk that the technology may contain vulnerabilities, security flaws or errors. These may, for example, result in the total loss of crypto-assets, even if the software used by Cryptonow and the systems controlled by Cryptonow function correctly.

Many of the technologies or software applications required for the sale, transfer or storage of crypto-assets are neither published by a software manufacturer nor certified by a central authority, such that there may be no liable person or entity available for any defects. Cryptonow uses and displays commonly recognised third-party security certificates (certification authorities) as a generally accepted security-enhancing measure; however, it cannot ultimately be guaranteed that the security certificates displayed on a platform are valid or correct.

Regularly updating Cryptonow’s mobile applications, your internet browser and the underlying operating systems helps to mitigate certain risks and security vulnerabilities.

5. Risk of Incomplete Transaction Processing

Cryptonow uses so-called “nodes” on the relevant blockchain, which check each block for transactions (both deposits and withdrawals). Once a transaction is detected, it is recorded in the Cryptonow system, so that the affected customer either receives a credit or the amount of crypto-assets held by them is reduced. It is possible that a node does not detect a transaction and that such transaction is therefore not recorded in the Cryptonow system. The customer bears this risk.

6. Regulatory and Legal Risks in Connection with Crypto-Assets

Crypto-assets do not constitute legal tender and cannot be compared with fiat currency, securities or other regulated financial products. Legislative or regulatory changes may have material effects on the current structure of the Platform, which may result in significant changes to crypto-assets. As a rule, there is no possibility to redeem crypto-assets with a central authority or to exchange them for assets representing such crypto-assets.

7. Risk of Failure and Lack of Success

The allocation and development of a crypto-asset may be discontinued for various reasons, including a lack of interest from industry, the community and/or the public, lack of funding, or lack of commercial success, for example due to competing projects and outside the control of Cryptonow. It is possible that crypto-assets may not gain or retain functionality or that material changes may occur to the functionality of such assets. Cryptonow makes no representation regarding the current or future functionality, adoption or commercial success of any crypto-asset.

8. Risk of Theft and Internet Security Vulnerabilities

The software applications underlying crypto-assets, as well as smart contract systems and/or other technology components, may be subject to electronic or physical attacks that could result in the irrevocable theft or loss of crypto-assets or private data.

9. Risk of Undermining the Benefits of Two-Factor Authentication (2FA)

Cryptonow strongly recommends the use of 2FA. However, it should be noted that the security benefit of 2FA is effectively negated if both factors are accessible using the same credentials.

10. Risk of Weak and/or Lost Credentials

If 2FA is not used in the cases предусмотрed by Cryptonow, any person who has access to the customer’s email address and password may access the customer’s account and the crypto-assets stored on the Platform and carry out transactions in the customer’s name.

The password chosen when creating the account (including any subsequent changes) may be subject to attacks, even if it is unique and known only to the customer. The risk is greater if the password is weak (in terms of length and/or complexity) and/or contains personal details (e.g. the customer’s name, date of birth or place of residence) or dictionary words. Cryptonow recommends always choosing a strong and unique password (not used for any other service) and using 2FA. Although stronger passwords are statistically less likely to be successfully obtained by attackers, no password is completely secure.

11. Risk of Phishing and Social Engineering

SMS and email services are susceptible to spoofing and phishing attacks. In case of uncertainty regarding the authenticity of a communication or notification, you should always log in via your customer account to verify transactions or required actions. Phishing attacks frequently occur despite SMS or email services or other equivalent services, as well as via search engines or advertisements in search engines or other fraudulent links. Cryptonow strongly recommends the use of 2FA; however, 2FA cannot prevent successful phishing or social engineering attacks if the customer’s credentials, including 2FA data, are disclosed in such an attack.

12. Risk of IT Attacks

IT systems may be subject to attacks or hacks that compromise the integrity or availability of the systems. Crypto-assets may be vulnerable to attacks, including but not limited to double-spend attacks, majority mining power attacks, “selfish mining” attacks, race condition attacks or other mining or non-mining attacks that are beyond the control of Cryptonow.

13. Risks Arising from Soft and Hard Forks

Crypto-asset protocols may be subject to forks that modify the underlying blockchain protocol rules. Such forks may materially change the value, function or name of the crypto-asset.

14. Tax Risks

The purchase, sale, exchange, holding and/or transfer of crypto-assets may have tax consequences for the customer. Cryptonow notes that while several countries have already implemented various tax regulations for crypto-assets, further changes and/or additional tax regulations are to be expected. Cryptonow may, under certain circumstances (now and/or in the future), be required to withhold taxes at source. Cryptonow may report information on transactions carried out by the customer to tax authorities to the extent such reporting is required under applicable law. Cryptonow will withhold taxes on the total amount of customer transactions to the extent such withholding is required by applicable law. Cryptonow may request tax documents, a certificate of the customer’s tax status or similar information, as required under applicable law. All withheld taxes will be remitted to the tax authorities, and Cryptonow cannot refund such amounts. The customer should conduct their own assessment and consult a tax adviser before making decisions in connection with transactions.

Tax consequences often (but not always) depend on the tax laws of the country of the customer’s permanent residence and on that country’s international tax treaties. Where Cryptonow is not legally required to withhold taxes, it is solely the customer’s responsibility to comply with all national and international tax laws that may apply to the customer from time to time as a result of using the Platform and holding, trading and/or exchanging crypto-assets. Cryptonow advises consulting a tax adviser before becoming a customer and before making an offer, as well as from time to time (e.g. in connection with the annual tax return or annual financial statements) and as required under the tax laws applicable to the customer, in order to clarify the tax consequences and economic effects associated with the use of the Platform and the holding, trading and/or exchange of crypto-assets offered on the Platform, and to ensure that all steps are taken to comply with applicable tax laws.

15. Risk of Platform Availability

The Platform (or functional parts thereof) or the Website may become unavailable as a result of legislative or regulatory changes. In connection with the suspension or termination of the Platform or of your account(s), you may incur losses or be subject to liabilities.

16. Risks of Market Psychology and Loss of Confidence

Cryptocurrency markets are susceptible to the formation of bubbles, irrational behaviour and loss of confidence. Demand may, for example, collapse due to changes in network protocols, governmental restrictions, the emergence of superior competing technologies, security breaches, theft or other events that undermine user confidence.

17. No Classification as Deposits and No Deposit Protection

Cryptocurrencies held in your account are not classified as deposits under the applicable laws, regulations or regulatory frameworks of any jurisdiction and do not constitute bank deposits or other repayable funds. Accordingly, cryptocurrencies held in your account are not protected by any deposit guarantee scheme, deposit insurance scheme, or investor compensation or investor protection scheme that may apply to banks, fintech banks, or other regulated financial institutions.

18. Legislative and Regulatory Risks

Changes in legislation or regulation at national or European level may adversely affect the use, transfer, exchange and value of cryptocurrencies and may impair the overall use of our products and services.