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Risk Disclosure Statement

(applies from 1 June, 2021)

Trading in Cryptocurrency (as defined in the Terms of Use), and delegating to another account holder the right to utilize Services on your behalf entails significant risks of financial loss. You should not commit funds to trading in Cryptocurrency that you are not prepared to lose entirely. Market prices for Cryptocurrency can be volatile and highly unpredictable. Whether the future market price for a Cryptocurrency will move up or down is a speculation and unknowable. 

You should not trade in Cryptocurrency, delegate to another account holder the right to utilize Services on your behalf unless you understand the associated risks. This Risk Disclosure Statement discusses some of the principal risks of trading in Cryptocurrency, but it does not and cannot describe every risk or consideration involved in holding, trading, or engaging in transactions in Cryptocurrency or delegating authority over your Account. This Risk Disclosure Statement forms a part of, and utilizes certain terms that are defined in, the Terms of Use.

Risks of trading Cryptocurrency and delegating to another account holder the right to utilize Services on your behalf include, but are not limited to, the following:

  1. Risks Associated with Financing Activities: When you finance a purchase or sale of Cryptocurrency on a peer-to-peer basis, you run the risk of losing your provided financing. ATAIX is not a counterparty to any transaction and has no financial responsibility or liability for any failure of market participants to honor their financial obligations. Similarly, when you accept financing to enter a trading agreement, you accept the risk of not being able to repay that financing (e.g., if the market price of the Cryptocurrency you purchased with the financing falls). Participants should know all of the terms of any contracts they enter and how their trading strategies and other market and risk factors can affect their financing obligations.

  2. Cryptocurrency Market Risk: Market prices for Cryptocurrency can be volatile and highly unpredictable. Whether the future market price for a Cryptocurrency will move up or down or even sustain a market value is a speculation and unknowable. Contingent orders, such as “stop-loss” or “stop-limit” orders, if permitted at all, may not necessarily limit losses to the expressed amount, and market conditions may make it impossible to execute an order or to obtain the stop price. ATAIX makes no representations or warranties about whether a Cryptocurrency will always continue to trade in the Cryptocurrency trading market. Any Cryptocurrency is subject to delisting without prior notice in the sole discretion of ATAIX.

  3. Legal Risk: The legality of Cryptocurrency, trading of them, leveraging them or trading or leveraging them on behalf of others may not be clear and may vary under the laws of different jurisdictions throughout the world. This can mean that the legality of holding or trading Cryptocurrency, engaging in the foregoing on behalf of others is not always clear. Whether and on what basis a Cryptocurrency may constitute property, an asset, or a right of any kind and what may constitute lawful leverage provision, might vary from one jurisdiction to another. You are responsible for knowing and understanding how the laws applicable to you or your property, rights or assets or to lending address, limit, regulate, and tax the Cryptocurrency you trade. 

  4. Liquidity Risk: Markets for Cryptocurrency can at times become what is known as “illiquid,” which means there can be a scarcity of persons who are willing to trade at any one time. Thinly traded or illiquid markets have potential increased risk of loss because they can experience high volatility of prices and in such markets market participants may find it impossible to liquidate market positions except at very unfavorable prices. There is no guarantee that the markets for any Cryptocurrency will be active and liquid or permit you to establish or liquidate positions in the Cryptocurrency when desired or at favorable prices.

  5. Risks of Commingling: The Fiat and  Cryptocurrency (or Fund’s as defined in the Terms of Use) transferred into your Account, including any Cryptocurrency Wallet, may be commingled with Fund’s of other users of the Site and with Fund’s of ATAIX and its Affiliates. ATAIX and its Affiliates are permitted to use your Fund’s for their own benefit, investment, and use while accounting for them in your Account.  Transferring your Fund’s into your Account exposes your Fund’s to risks of total loss from, among others things, security breaches from cyber attacks that hack and steal Fiat or Сryptocurrency, electronic or technological failures that impede or prevent market access and market performance, recordkeeping errors, and any insolvency, bankruptcy, or material financial losses of or incurred by ATAIX or any of its Affiliates.

  6. Market Default Risk: ATAIX operates and administers the trading platform for the Сryptocurrency, but ATAIX is not a counterparty to any trade and has no financial responsibility or liability for any failure of market participants to honor their financial obligations. There is always a risk that one or more market participants will renege, default, or otherwise fail to honor their financial obligations or will be unwilling or unable to abide by the terms of their agreements. In the event that risk materializes, other market participants can and likely will incur financial losses or reductions in gains from their own open positions in Сryptocurrency.

  7. Risk of Account Freeze: ATAIX may freeze your Account, in the event that you are believed to be engaged in suspicious activity or to be in breach of any of the Terms of Use. If your Account is frozen, you will not be able to trade or to make transfers to or from your Account. This may result in the closure of your open orders.

  8. Delegated Account Management Risk: Delegating to another person (further – тhe Delegate) the right to utilize Services on your behalf in a Delegated Account by API-key’s exposes your Fund’s to additional risk of loss dependent on the Delegate’s actions with respect to assets in Delegated Account. The only contractual limitations on the Delegate’s authority with respect to the Delegated Subaccount are the terms and conditions agreed upon and enforced by the Delegator and Delegate, and ATAIX will not be a party to, or otherwise bound or obligated by such terms and conditions. There is always a risk that the Delegate will default, engage in willful misconduct, be negligent or otherwise fail to honor its obligations or will be unwilling or unable to abide by the terms of its agreements with the Delegator or otherwise. In the event that risk materializes, the Delegator can and likely will incur financial losses or reductions in gains from their Delegated Account.

  9. Conflicts of Interest: ATAIX charges fees for trading and therefore benefits from trading activity (sometimes called volume) regardless of whether the trading is profitable to you. ATAIX and its Associates have certain actual or potential conflicts of interest related to the decision to support or not support a Сryptocurrency or increase or decrease the scope of the Services made available for such Сryptocurrency. ATAIX Associates may trade or operate businesses that trade, in the peer-to-peer market and use other Services on a proprietary basis or on behalf of others. These offers and trades are not distinguished from other offers and trades in the peer-to-peer market, and ATAIX Associates may be a counterparty to any trade executed by you without your knowledge. ATAIX has no duty to act on your behalf and undertakes no responsibility to do so.