Risk statement
Prototype placeholder — not a legal document.
What can go wrong when a fiat currency is exchanged for a digital asset.
1.Purpose
This statement sets out the principal risks of exchanging currency for digital assets. It is not exhaustive and it is not advice. If these risks are not acceptable to you, do not trade.
2.Price volatility
Digital asset prices move sharply and without warning, in both directions, at any hour of any day. A holding may lose a large part of its value in a short period, and past movement says nothing about future movement.
3.No deposit protection
Digital assets are not bank deposits. They are not covered by a deposit guarantee or an investor compensation scheme, and holding them with any service carries the risk of that service failing.
4.Irreversible transfers
A transfer on a public network cannot be reversed, by us or by anyone else. An address entered incorrectly, or an asset sent on a network that does not carry it, is lost. Check the address and the network before you send.
5.Network risk
Public networks can congest, raise their fees, reorganise recent blocks, split or halt. Delivery times depend on the network rather than on us, and a transfer may take materially longer than usual.
6.Liquidity and spread
Liquidity varies by asset and by hour. In thin conditions the spread widens, a large order is harder to fill at a single price, and a quote may be refreshed more often.
7.Stablecoin risk
A stablecoin is an obligation of its issuer, not a currency. Its value depends on the issuer's reserves and on the issuer's willingness and ability to redeem. It can trade away from the currency it references, and an issuer can freeze the balance held at a given address.
8.Privacy assets and delivery
Monero conceals amounts and addresses by design, and locks the output of every transaction for 10 blocks before it can be spent. Delivery therefore takes longer than on the other networks, and some venues decline the asset altogether.
9.Custody and access
An asset delivered to your own wallet is under your control alone: the keys, the backup and the device are yours to protect. Keys that are lost cannot be restored by us.
10.Tax and jurisdiction
The legal and tax treatment of digital assets differs between jurisdictions and changes over time. Your own tax position is yours to determine, and access to the service may be restricted in some countries.
11.No advice
Nothing published by Aerarium is a recommendation to buy, sell or hold any asset. Rates, charts and worked examples are information, not an opinion about what you should do.