Risk Warning

A. How to Interpret this Risk Warning

All terms used in this notice are defined in the SAFEX Terms of Use (referred to as the "Terms of Use"), and their meanings and interpretations are the same as those in the Terms of Use.

B. SAFEX Services

This notice provides you with risk information related to SAFEX services. Each SAFEX service has its unique risks. This notice outlines the risks you may encounter when using SAFEX services. This notice does not explain all risks or how these risks may relate to your personal situation. Before deciding to use SAFEX services, you must fully understand the risks involved.

C. No Personal Advice Provided

We do not provide personal advice related to our products or services. Sometimes, we provide factual information, information about trading procedures, and information about potential risks. However, any decision to use our products or services is made by you. Any communication or information provided to you by SAFEX should not be considered or interpreted as investment advice, financial advice, trading advice, or any other type of advice. You should decide on any investment, investment strategy, or related transactions based on your personal investment goals, financial situation, and risk tolerance.

D. No Monitoring

In any transactions or other decisions or activities you undertake using SAFEX services, SAFEX is not your broker, intermediary, agent, or advisor, and SAFEX has no fiduciary relationship or obligation to you. We do not monitor whether your use of SAFEX services is in line with your financial goals. It is up to you to assess whether your financial resources are sufficient for your financial activities with us and your risk preferences for the products and services you use.

E. No Tax, Regulatory, or Legal Advice Provided

The tax treatment of digital assets is uncertain, and when trading through SAFEX services, you are responsible for determining which taxes you may need to pay and how these taxes apply. You are responsible for reporting and paying any taxes that may arise from transactions conducted through SAFEX services, and you acknowledge that SAFEX does not provide legal or tax advice related to such transactions. If you have any questions about your tax situation or obligations while using SAFEX services, or about digital assets in your SAFEX account, you may wish to seek independent advice. You acknowledge that SAFEX shall report your transaction, transfer, allocation, or payment information to tax or other public authorities at the time and place required by applicable law. Similarly, at the time and place required by applicable law, SAFEX may withhold taxes related to your transactions, transfers, allocations, or payments. Applicable law may also require SAFEX to request additional tax information, status, certificates, or documents from you. You are aware that if you fail to respond to these requests within the specified time, SAFEX may withhold taxes on your behalf to the relevant tax authorities as required by law. Before engaging in any digital asset transactions, we encourage you to seek professional and personalized tax advice on the above matters.

F. Market Risk

Trading in digital assets carries significant market risks and price fluctuations. The change in value can be significant and may occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value and return on an investment may rise or fall, and you may not be able to recover the cost of your investment.

G. Liquidity Risk

Digital assets may have limited liquidity, making it difficult or impossible for you to sell or exit your position when you want to. This may occur at any time, including during periods of rapid price fluctuations.

H. Availability Risk

We do not guarantee that SAFEX services will be available at any particular time, nor do we guarantee that SAFEX services will not experience unplanned service interruptions or network congestion. When you wish to buy, sell, store, transfer, send, or receive digital assets, you may not be able to do so.

I. Third-Party

Risk Third parties, such as payment providers, custodians, and banking partners, may be involved in providing SAFEX services. You may be subject to the terms and conditions of these third parties, and SAFEX may not be responsible for any losses that may result from these third parties.

J. Security Risk

SAFEX cannot eliminate all security risks. You are responsible for protecting the security of your SAFEX account password, and you may be responsible for all transactions under your SAFEX account, whether authorized or not. Transactions in digital assets may be irreversible, and losses due to fraud or unauthorized transactions may not be recoverable.

K. Risks Related to Digital Assets

Given the nature of digital assets and their underlying technology, there are inherent risks, including but not limited to: Failures, defects, hacking, exploitation, errors, protocol failures, or unforeseen circumstances in digital assets or the technical or economic systems on which they rely; Digital asset transactions are irreversible. Therefore, losses due to fraud or accidental transactions may not be recoverable; Technological developments may render digital assets obsolete; Settlement delays due to delays may occur before transactions are settled on the scheduled delivery date; and Attacks on protocols or technologies relied upon by digital assets, including but not limited to: i. Distributed Denial of Service; ii. Witch attacks; iii. Phishing attacks; iv. Social engineering attacks; v. Hacking attacks; vi. Smurf attacks; vii. Malware; viii. Double spending attacks; ix. Multiple mining, consensus-based, or other mining attacks; x incorrect message activity; xi. Fork attacks; and xii. Deceptive attacks.

L. Monitoring Risk

The digital asset market is open 24 hours a day, 7 days a week. Prices may change rapidly at any time, including outside of normal business hours.

M. Communication

Risk When you communicate with us electronically, you should be aware that electronic communications may fail, may be delayed, may be insecure, and/or may not reach their intended destination.

N. Currency

Fluctuations in currency exchange rates will affect your gains and losses.

O. Legal Risk

Changes in laws and regulations may have a significant impact on the value of digital assets. This risk is unpredictable and may vary by market.