Important Considerations Regarding Digital Currency and Digital Assets
Before engaging with Digital Currency and/or Digital Assets (Crypto assets or Virtual assets), it is essential to:
- Educate yourself about Crypto assets and related matters.
- Assess your individual risk tolerance and investment goals.
Engaging in Crypto asset activities involves risks and can lead to a complete or partial loss of your Crypto assets and/or fiat funds. There are no protections if something goes wrong, and you are solely responsible for your decisions and actions on Crypto asset wallets and platforms. Conduct thorough research before engaging in any transactions.
Risk Factors to Consider
1. Volatility and Liquidity Risks:
- Prices of Crypto assets can fluctuate significantly and may become worthless at any time.
- Crypto assets may lack liquidity due to volatility or supply and demand changes, making it difficult or even impossible to transact (e.g., buy/stake/lend/farm or sell/unstake/redeem).
- Impermanent loss may occur in liquidity pools if the value of your Digital Assets changes from the time of deposit to withdrawal, potentially leading to a lower withdrawal value.
- Under certain conditions, liquidating positions may be difficult. Contingent orders, such as “stop” or “limit” orders, may not guarantee loss limits due to market conditions. MELD is not liable for any price differences or adverse effects.
- The value of a virtual asset is often based on the market's willingness to exchange it for fiat currency, which may lead to total loss if demand ceases.
- There is no guarantee that entities accepting virtual assets today will continue to do so.
2. Technology-Related Risks:
- Crypto assets operate on decentralized, partially anonymous systems relying on peer-to-peer networks and cryptography, without central governance.
- Platform protocols may change due to operational rule modifications (including “forks”), potentially affecting asset functionality, availability, and value. MELD may choose not to support certain forks.
- Market conditions, illiquidity, or volatility can restrict Crypto asset actions (e.g., buying, staking, redeeming).
- Crypto asset transactions are irreversible. Losses due to incorrect addresses, accidental transactions, or transfers to non-recoverable addresses may be permanent.
- Crypto assets may have underlying cryptographic vulnerabilities, potentially leading to compromised data or asset theft.
- MELD platform could experience failures in hardware, software, or internet connections and may be subject to cyberattacks. MELD assumes no liability for such disruptions.
3. Regulatory Risks:
- Virtual assets are not legal tender, are not government-backed, and do not have investor protections or deposit insurance.
- There is no central bank to regulate Crypto assets during crises or issue additional assets. They are not protected by any financial service regulation, apart from anti-money laundering and counter-terrorism financing laws.
- Government regulation or prohibition of Crypto assets may impact value or usage of the MELD services.
- The Crypto assets market faces regulatory uncertainty worldwide, which could lead to stricter legal requirements and adverse service changes.
- Crypto assets trading may experience bubbles or confidence drops, potentially affecting demand and price stability.
- Users are solely responsible for understanding and adhering to relevant legal and tax obligations. MELD assumes no responsibility for these consequences.
4. Personal Education Risks:
- Prior to using Crypto assets, conduct thorough research. Crypto asset transactions entail risks and could lead to total loss of funds.
- MELD does not offer investment or legal advice, nor make recommendations on service usage. Users are solely responsible for their financial decisions on the platform.
- Any MELD platform information (e.g., opinions, news, research, analysis) is general market commentary and not investment advice.
5. Other Risks:
- Stablecoins: While designed to maintain a fixed value relative to fiat currency, stablecoins may lose this value during extreme volatility.
- Consensus Mechanism Risks: If an entity gains control of over 51% of a blockchain’s computing power, it may exploit this majority to double-spend assets, likely reducing the impacted asset's value.
Additional risks may exist beyond those listed here and in MELDApp Terms or MELD General Terms. By using our services, you acknowledge and accept all outlined and potential additional risks.
