Risk Disclosure Statement

Last Updated: 

March 8, 2019

This Risk Disclosure Statement forms part of our Aquanow User Agreement. Capitalized terms not defined in this Risk Disclosure Statement have the meanings provided in the Aquanow User Agreement. By using our Services, you acknowledge and agree with the following:

Trading and investing in digital assets is inherently risky and may result in financial loss. It is important that you fully understand the risks involved with digital asset trading and investing before deciding to execute any digital asset trades. This Risk Disclosure Statement is not a complete statement of all risks involved in digital asset trading. It is your responsibility to educate yourself as to all risks applicable to digital asset trading and investing.  Virtual currency trading and investing involves risk to your capital. Always ensure that you have adequate financial resources to bear the risks involved in digital asset trading and investing and that you monitor your positions carefully.  You should not invest money that you cannot afford to lose. This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding and trading digital assets, but sets out some of the principal risks involved with digital asset trading and investing:

1. Market Risk

The market for digital assets is still new and uncertain. No one should have funds invested in digital assets or speculate in digital assets that they are not prepared to lose entirely. Digital assets are subject to frequent and extreme price fluctuations. Whether the market for one or more digital assets will move up or down, or whether a particular digital asset will lose all or substantially all of its value, is unknown. This applies both to traders that are going long and to traders that are shorting the market. Participants should be cautious about holding digital assets.

2. Liquidity Risk

Markets for digital assets have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade digital assets or products derived from or ancillary to them. Furthermore, any market for digital assets may abruptly appear and vanish. You acknowledge it may not be possible to liquidate your digital assets. 

3. Legal Risk

The legal status of certain digital assets may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more digital assets constitute property, or assets, or rights of any kind may also seem unclear. Participants are responsible for knowing and understanding how digital assets will be addressed, regulated, and taxed under applicable law.

4. Exchange Risk (Counterparty Risk)

Having digital assets on deposit or with any third party in a custodial relationship has attendant risks. These risks include security breaches, risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold their property for any reason.

5. Trading Risk

In addition to liquidity risks, values in any cryptocurrency marketplace are volatile and can shift quickly. Participants in any digital assets market are warned that they should pay close attention to their position and holdings, and how they may be impacted by sudden and adverse shifts in trading and other market activities.

6. Settlement Risk

CLTS Technologies Ltd. (“CLTS”) and its affiliates make absolutely no guarantee on the settlement times of digital assets and/or fiats, while CLTS operates in a capacity which attempts to optimize settlement times for its clients.

7. Risk of Loss

Digital assets can become irretrievably lost if you forget or lose your password or private keys to your digital assets. 

8. No Investment Advice or Fiduciary Relationship

Any opinions, news, research, analyses, prices, or other information contained on the Aquanow services are provided as general market commentary, and do not constitute investment or trading advice or any other type of professional advice. CLTS will not be responsible for any loss arising from any investment or trade based on any information provided on the Aquanow services or by CLTS or any of its representatives. You confirm that all trades you make are made without reliance on any information or advice that CLTS or its representatives may have provided to you. 

You are solely responsible for evaluating the suitability and commercial reasonableness of your trades. 

You acknowledge that CLTS is not in a fiduciary relationship with you. 

9. Protection and Treatment of Digital Assets and Fiat Currency Held in Your Account

Your account with CLTS is not a deposit or investment account. Digital assets and fiat currency deposited or otherwise held in your account are not protected by the Canadian Investor Protection Fund, other similar funds or insurance, or any other government backed investor or account balance protection program. CLTS is not a bank, credit union, trust, or any other type of financial institution. Digital assets and fiat currency held in your account will not accumulate interest. 

10. Additional Risk and Information

This Risk Disclosure Statement cannot and does not disclose all risks associated with digital asset storage and trading through the Aquanow services. Consequently, you should take time to become adequately educate yourself of digital asset storage and trading, and of the technologies underlying digital assets, before making deposits or trades on the Aquanow services. As appropriate, you should also seek third-party expert advice prior to using the Aquanow services.  

Several federal agencies have also published advisory documents surrounding the risks of digital assets. For more information see publications from the Canadian Securities Administrators, the Consumer Financial Protection Bureau, the Financial Industry Regulatory Authority and the Securities and Exchange Commission.