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