Risk Disclosure Statement

Risk Disclosure Statement
1. Introduction
    This Risk Disclosure Statement provides important information about the risks associated with trading and investing in cryptocurrencies on Crypsity. By using our platform, you acknowledge and accept the inherent risks involved. If you do not understand or are not comfortable with these risks, you should not engage in cryptocurrency trading.

2. General Risks
2.1. Market Risk
    Cryptocurrency markets are highly volatile and can experience rapid and unpredictable price fluctuations. The value of cryptocurrencies may rise or fall significantly over short periods, and you may lose a substantial portion or all of your investment.

2.2. Liquidity Risk
    Certain cryptocurrencies may have limited liquidity, making it difficult to buy or sell at desired prices. Illiquid markets can result in substantial price slippage and may prevent you from closing positions at favorable times.

2.3. Regulatory Risk
    Cryptocurrencies are subject to various regulatory frameworks in different jurisdictions. Changes in laws, regulations, or governmental policies can affect the value, use, and legality of cryptocurrencies. Regulatory actions may also impact the operation of cryptocurrency exchanges.

2.4. Technology Risk
    The technology underlying cryptocurrencies and the Crypsity platform is complex and may be subject to bugs, errors, or vulnerabilities. Cyberattacks, hacking, and technical failures can result in the loss of funds or personal information.

3. Specific Risks
3.1. Operational Risk
    Crypsity relies on various third-party service providers for the operation of its platform. Any disruption, failure, or insolvency of these service providers can affect your ability to trade and access your funds.

3.2. Counterparty Risk
    When trading on Crypsity, you are exposed to the risk that other users may default on their obligations. Crypsity does not guarantee the performance or solvency of any counterparty.

3.3. Custodial Risk
    Crypsity may hold your funds in both hot (online) and cold (offline) wallets. While we implement industry-standard security measures, there is always a risk of loss due to hacking, theft, or other security breaches.

4. Investment Risks
4.1. Risk of Total Loss
    Investing in cryptocurrencies involves a high risk of total loss. You should only invest funds that you can afford to lose and should not invest money that you rely on for essential living expenses.

4.2. Risk of Market Manipulation
    Cryptocurrency markets may be susceptible to market manipulation, including pump-and-dump schemes, wash trading, and spoofing. These activities can distort market prices and lead to unexpected losses.

4.3. Diversification Risk
    Investing heavily in a single cryptocurrency or a narrow range of cryptocurrencies increases your exposure to specific risks. Diversification does not eliminate risk but can help mitigate it.

5. Risk Management
5.1. Due Diligence
    You are responsible for conducting your own due diligence and research before making any investment decisions. Understanding the technology, market conditions, and regulatory environment is crucial to managing risk.

5.2. Use of Leverage
    Using leverage in cryptocurrency trading amplifies both potential gains and losses. Leverage can result in significant losses, exceeding your initial investment. You should use leverage cautiously and be aware of the risks involved.

5.3. Stop-Loss Orders
    Implementing stop-loss orders can help limit potential losses by automatically closing positions at predetermined price levels. However, stop-loss orders are not guaranteed and may be subject to slippage in volatile markets.

6. No Financial Advice
    Crypsity does not provide financial, investment, tax, or legal advice. All information provided on our platform is for informational purposes only and should not be construed as professional advice. You should consult with qualified professionals before making any investment decisions.

7. Conclusion
    Cryptocurrency trading involves significant risk and is not suitable for all investors. By using Crypsity, you acknowledge that you have read, understood, and accept the risks outlined in this Risk Disclosure Statement. You agree to use Crypsity at your own risk and understand that you may lose a substantial portion or all of your investment.

If you have any questions or concerns about this Risk Disclosure Statement, please contact us at support@crypsity.com.