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Risk Warning - Notice to UK Users  

Estimated reading time: 2 mins

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1.You could lose all the money you invest

The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in crypto assets.

The crypto asset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

2.You should not expect to be protected if something goes wrong

The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime – in other words, this type of investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here.

The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here.

3.You may not be able to sell your investment when you want to

There is no guarantee that investments in crypto assets can be easily sold at any given time. The ability to sell a crypto asset depends on various factors, including the supply and demand in the market at that time.

Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your crypto assets at the time you want.

4.Cryptoasset investments can be complex

Investments in crypto assets can be complex, making it difficult to understand the risks associated with the investment.

You should do your own research before investing. If something sounds too good to be true, itprobably is.

5.Don’t put all your eggs in one basket

Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.

A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about cryptoassets, visit the FCA’s website here.

General Risk Warning

Important Notice: Cryptocurrency Services 
 
This risk warning is provided to you by Tap Global Limited ("Tap" ) in accordance with the requirements set out by the UK Financial Conduct Authority (FCA) for cryptocurrency providers.  
 
Before engaging in any cryptocurrency-related services offered by Tap (or any other provider), it is important that you carefully read and understand the risks associated with such activities. Cryptocurrency investments are highly volatile and can result in significant financial losses. Therefore, it is crucial that you consider your own risk appetite and financial situation before proceeding. 
 
1. Services 
 
Tap offers various cryptocurrency-related services, including but not limited to: 
 
a) Buying and selling cryptocurrencies: Tap allows you to buy and sell cryptocurrencies through its platform. However, please note that the value of cryptocurrencies can fluctuate rapidly, and there is no guarantee of profit or protection against losses. 
 
b) Cryptocurrency exchange: Tap provides a platform for exchanging cryptocurrencies. It is important to understand that the exchange rates for cryptocurrencies can be highly volatile and may differ significantly from the prevailing market rates that may be offered by other providers or market analysis portals.   
 
c) Cryptocurrency transfers: Tap enables you to transfer cryptocurrencies to other Tap users as well as to external wallets held with other providers or personally. However, please be aware that cryptocurrency transactions are irreversible, and if you send cryptocurrencies to the wrong address or to an unauthorised recipient, you may lose your funds permanently. 
 
 
2. Risks 
 
a) Volatility: Cryptocurrencies are known for their extreme price volatility. The value of cryptocurrencies can fluctuate rapidly and unpredictably, which may result in significant gains or losses within short periods. You should be prepared for the possibility of substantial fluctuations in the value of your cryptocurrency holdings. 
 
b) Market Risk: The cryptocurrency market is relatively new and lacks the same level of regulation and oversight as traditional financial markets. As a result, the market can be subject to manipulation, fraud, and other illegal activities. The lack of liquidity in certain cryptocurrencies may also impact their value and your ability to buy or sell them. 
 
c) Regulatory Risk: Cryptocurrency regulations are evolving, and changes in regulations or government policies may have a significant impact on the value and usability of cryptocurrencies. Tap will make reasonable efforts to comply with applicable regulations, but there is no guarantee that regulatory changes will not affect your ability to use or trade cryptocurrencies. 
 
d) Security Risk: Cryptocurrencies are stored in digital wallets, which are susceptible to hacking, theft, and other security breaches. While Tap implements security measures to protect your cryptocurrencies, it is important to understand that no system is completely immune to cyber threats. You should take appropriate measures to secure your own digital wallet and protect your private keys. 
 
e) Technology Risk: Cryptocurrencies rely on complex technology infrastructure, including blockchain networks. Technical issues, software bugs, or cyber attacks on these networks may result in disruptions, delays, or loss of access to your cryptocurrencies. Tap will make reasonable efforts to address such issues promptly, but there is no guarantee of uninterrupted service. 
 
f) Lack of Understanding: Cryptocurrencies and blockchain technology can be complex and difficult to understand. It is important that you educate yourself about the fundamentals of cryptocurrencies and the associated risks before engaging in any cryptocurrency-related activities. 
 
3. Conclusion 
 
Cryptocurrency investments involve a high degree of risk, and you should only invest funds that you can afford to lose. The risks outlined above are not exhaustive, and there may be additional risks associated with cryptocurrency investments. It is recommended that you seek independent financial advice before making any investment decisions. 
 
By using Tap's cryptocurrency services, you acknowledge and accept the risks associated with cryptocurrencies. Tap will not be liable for any losses or damages incurred as a result of your cryptocurrency investments. 
 
If you have any questions or concerns regarding the risks associated with cryptocurrency services, please contact our customer support team for further assistance. 
 
Tap Global Limited (“Tap”) is licensed and regulated by the Gibraltar Financial Services Commission under the Distributed Ledger Technology (DLT) with license No. 25532. 
 
Last updated: 04/10/2023