Crucial Information Regarding Crypto Asset Risks

Please carefully review this information before engaging with Zero Hash. It's vital to understand that the value of digital currencies can fluctuate downwards as well as upwards, potentially resulting in a loss of your initial investment, or even the complete loss of funds. Always keep these potential risks in mind when considering any activity involving crypto assets.

This document offers an overview of several significant risks associated with investing in digital currencies, though it does not cover every conceivable risk. Engaging in crypto trading inherently involves risk. You should thoughtfully assess whether you possess the financial capacity and willingness to accept these and any other risks you perceive. Zero Hash encourages all users to conduct their own thorough research prior to purchasing or trading any crypto asset and to prioritize digital currencies that fully comply with MiCA regulations.

Key Risk Factors to Consider:

• General Market Volatility: The act of trading or holding digital assets like Bitcoin or Ether carries a substantial possibility of financial loss. You should determine if this activity aligns with your financial standing.

• Digital Currency Price Fluctuations: Crypto assets are not recognized as legal tender and can experience extreme price instability. Their value can decline rapidly, suffer significant reductions, and in some cases, even depreciate to zero.

• Dangers of Non-Compliant Digital Assets: Digital currencies that do not adhere to MiCA standards may present a higher degree of risk compared to those that do. Zero Hash recommends exclusively trading in digital assets that are fully compliant with MiCA, as dealing with non-compliant ones may expose you to greater risks.

• Stablecoin Considerations and Authorization: While stablecoins are designed to maintain a stable value, issuers offering them publicly or seeking their trading admission in Europe must obtain MiCA authorization. Be aware that not all stablecoins available via our platform have authorized issuers. These may involve increased risks concerning redemption, transparency, and the availability of selling options. Zero Hash advises trading only in stablecoins issued by entities authorized under MiCA. You can verify issuer authorization by consulting the regularly updated [ESMA registers](link to ESMA registers).

• Challenges with Asset Liquidity: The ease with which you can buy, sell, or exchange a digital currency depends on its market liquidity. If a digital asset's market lacks sufficient liquidity, you might encounter difficulties in selling your holdings or obtaining a fair market price.

• Exposure to Fraud and Theft: Digital currencies, like any other asset, can be lost due to fraudulent activities or theft, including phishing schemes, scams, and attacks targeting the underlying technology. Sending digital assets to an unfamiliar digital wallet may lead to an irreversible loss of those assets.

• Vulnerability of Digital Assets and Systems: As digital assets, cryptocurrencies and their related systems are susceptible to security breaches and technical malfunctions. This could result in the loss of your digital currencies or delays in your ability to trade or utilize them.

• Securing Access to Your Digital Assets: Certain digital wallets require a recovery phrase, often a sequence of words, to access your holdings. Losing this recovery phrase can lead to the permanent inability to access your digital currencies.

• Potential for Network Congestion and Transaction Delays: While Zero Hash endeavors to process user orders in a timely manner, network congestion on the blockchain can occasionally lead to fulfillment delays. Zero Hash has no control over the processing times of transactions on these decentralized networks.

• MiCAR Compliance: Zero Hash encourages all customers to use MiCAR-compliant crypto assets and believes that ESMA’s warnings about non-EU firms apply equally to non-compliant EMTs. When purchasing crypto assets, we suggest that you consider whether a crypto asset is compliant with MiCAR. Where you purchase non-compliant crypto assets with us, we will warn you as part of the check-out flow that you are about to purchase non-compliant crypto asset.