A. RISKS RELATED TO THE SERVICES, VIRTUAL ASSETS, AND ACCEPTED VIRTUAL ASSETS AND STABLECOINS

RISK OF LOSS IN TRADING VIRTUAL ASSETS CAN BE SUBSTANTIAL AND YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD BE AWARE OF THE FOLLOWING:

(i) Virtual Assets are Not Legal Tender

Most Virtual Assets are not backed by any central government or legal tender (in the UAE), meaning each country has different standards.

There is no assurance that a person who accepts a Virtual Asset as payment today will continue to do so in the future. Holders of virtual assets put their trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity, and neither vendors nor individuals have an obligation to accept Virtual assets as payment in the future;

(ii) Loss of Value, Volatility and Uncertainty of Future Performance

There is limited or no fundamental reasoning behind the pricing of Virtual Assets, creating the risk of volatility and unpredictability in the price of Virtual Assets relative to Fiat Currencies. Virtual Assets have had historically higher price volatility than Fiat Currencies with no or limited tangible underlying for price reference, allowing irrational and exorbitant moves in price as the process for valuation is speculative and uncertain.

(iii) Market Forces

Trading in Virtual Assets may be susceptible to irrational market forces, such as speculative bubbles, manipulation, scams, and fraud.

(iv) Financial Crime and Cyber Attacks

Cyber Crime is more prevalent as the ecosystem is totally digital and devoid of traditional governance. The nature of Virtual Assets may lead to an increased risk of cyber-attack as the ecosystem is totally digital. For example, a 51% attack is an attack on a blockchain by any Person or group of Persons who control more than 50% of the network’s mining hash rate. Attackers with majority control of the network can interrupt the recording of new blocks by preventing other miners from completing blocks, altering payment history and subverting funds.

Clients are susceptible to Malware and fake/hijacked addresses and other forms of Cyber-attacks that holding Virtual Assets may pose and Clients should always take care of passwords and double check the addresses and URLs before loading software.

(v) Availability of Virtual Assets

Virtual Assets are required to be approved by the FSRA for holding on the Platform. Such approval may be withdrawn at any time. Any Virtual Asset may be delisted at any time without any notice or consent. Similarly, any new Virtual Asset arising from a hard fork or similar changes to a Virtual Asset’s protocols will require approval by the FSRA prior to being available on the Platform.

(vi) Technology Risk

The risks of Virtual Assets being transacted via new technologies, (including distributed ledger technologies (‘DLT’) with regards to, among other things, anonymity, irreversibility of transactions, accidental transactions, transaction recording, and settlement.

Transactions in Virtual Assets on the blockchain relies on the proper functioning of complex software, which exacerbates the risk of access to or use of Virtual Assets being impaired or prevented. Failing to acknowledge this can prevent Clients from use/access to Virtual Assets.

(vii) Regulatory Risk

Many trading venues and Virtual Asset services are not regulated, or subject to limited regulation, and Clients should choose counterparties after careful due diligence.

You further acknowledge the above list of risks is non-exhaustive and there may also be unpredictable risks. Except as described below, we are not responsible for any losses of any nature arising from your use of the Website.