RISK WARNING ABOUT CRYPTO ASSETS
Created: 14.7.2025
Before you start trading crypto assets on Kvarn X service, it is important that you acknowledge and understand the significant risks involved.
The main risks associated with crypto assets can be identified as:
High volatility and risk of capital loss: Crypto assets are notoriously highly volatile investment objects. Their value can fluctuate drastically and unpredictably, even within a short period. This means that the value of your investment can decrease rapidly and significantly. There is a real risk that you could lose your entire invested capital. Do not invest more in crypto assets than you are prepared to lose.
Liquidity risk, especially in smaller crypto assets: The liquidity of some crypto assets, particularly those with a smaller market capitalization or lower daily trading volume, can be poor. This means it may be difficult to buy or sell them quickly at your desired price without significantly impacting their market price. Selling or buying large amounts may be slow, or you might have to accept a less favorable price than you expected, especially in volatile market conditions. In the worst-case scenario, you may not find a buyer or seller for your desired crypto asset at all.
Regulatory variability: Not all crypto asset products and markets are regulated in all jurisdictions, or regulation may be undeveloped. The lack of regulation or changes in regulation can affect the value and legality of crypto assets, as well as your investor protection.
Tax liability: Profits you receive from crypto-assets (for example, from appreciation in value or "mining") may result in tax consequences. You are solely responsible for determining your own tax position and for reporting and paying any applicable taxes. We recommend consulting a tax advisor if necessary.
Usage restrictions: Geographical or other restrictions may apply to the use of our service and the availability of certain crypto assets.
Security risk: The anonymity related to crypto assets exposes them to an increased risk of cyberattacks, since if credentials or private keys are stolen, crypto assets may be transferred to addresses that make their recovery difficult or impossible. Hackers or other malicious groups or organizations may attempt to interfere with crypto assets in a variety of ways, including malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, and spoofing, as well as attacks which overpower the consensus-based mechanism on which the blockchain is built and attacks which interfere with or otherwise cause nodes to malfunction (nodes are computers / hardware devices that help maintain the blockchain). While we use all reasonable efforts to safeguard crypto assets and protect the Kvarn X platform from cyberattacks, it is not possible for any operator to eliminate security risks entirely.
Unanticipated risks: crypto assets represent a relatively new industry and it is possible that not all risks associated with crypto assets have been seen or identified yet. In addition to the risks included above, there are risks associated with trading crypto assets that we cannot reasonably foresee. Additional risks may also materialize as unanticipated variations or combinations of the risks discussed above in this Risk Warning.
Please understand that investing in crypto assets involves risks that differ from traditional investment objects. Conduct your own careful due diligence and ensure you understand the risks before you start investing.