The last update published: December 9, 2019
Please ensure that you fully understand all potential risks relating to Virtual Assets (also known as Virtual Currencies or Digital Currencies or Crypto Currencies) before using our services.
Use of services in relation to Virtual Assets comes with number of risks. We have listed risks that we consider to be the most significant ones below. In addition, services in relation Virtual Assets are not regulated with the same controls or customer protections available for financial services.
Note that this list of risks is not be complete, and risks of different nature may have an adverse impact on your use of services with relation to Virtual Assets.
Market Risk. The value of Virtual Asset fluctuates constantly. The value of Virtual Asset may decrease very significantly. Virtual Asset may even become worthless because of such value fluctuations. Unlike currencies issued by governments and recognized as legal tender, Virtual Assets are backed and supported by technology and trust. There are no central banks or other authorities that can take corrective measures in order to protect the Virtual Asset’s value in a crisis. Use of services relating to Virtual Asset trading can lead to large and immediate financial losses. It follows that you should not hold value you cannot afford to lose in Virtual Assets. Use of services relating to Virtual Assets may not generally be appropriate, particularly with funds drawn from savings, loans, mortgages, emergency funds, or funds set aside for other purposes.
Liquidity Risk. Under certain market conditions, it may be difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a particular Virtual Asset suddenly drops, or if trading is halted due to recent news events, or changes in the underlying Virtual Asset system.
Unforeseen Events. Virtual Assets are still in a developmental phase. That is why Virtual Assets do not have a meaningful track record to provide credibility. If new kinds of Virtual Assets which are technologically or otherwise superior than existing ones (such as Bitcoin) were developed, it could result in significant adverse impact on the value of existing Virtual Assets. Accordingly, there may be sudden and significant impacts on the value of Virtual Assets arising from technological development and / or other unforeseen events.
Operational / Cybersecurity Risk. Services with relation to Virtual Assets are provided by digital means. The Virtual Assets may be vulnerable to attacks on the security, integrity or operation. So, Virtual Assets are at risk from hackers, malware and operational glitches. These events are particularly problematic as all Virtual Asset transactions are irreversible.
Underlying Technology Risk. The blockchain is an independent public peer-to peer network and is not subject to regulation or control by any authority. We do not own or control the underlying software protocols which govern the operation of the Virtual Assets. Any individual Virtual Asset may change or otherwise cease to operate as expected due to changes made to its underlying technology, changes made using its underlying technology, or changes resulting from an attack. These changes may include, without limitation, a "fork," a "rollback," an "airdrop," or a "bootstrap." Such changes may have an impact to the value of the Virtual Asset.
Regulatory Risk. Virtual Assets are alternatives to traditional fiat currencies issued by governments recognized as legal tender. Virtual Assets may be used to facilitate money laundering, terrorism financing or other illegal activities. Yet, there is no clear consensus between governments as to regulation of Virtual Assets. As a result, the use of Virtual Assets may be regulated, restricted and / or banned. It is likely that any such action may impact the value of Virtual Assets.
Taking all risks into consideration, you should carefully consider whether use of our services relating to Virtual Assets is suitable for you in light of your circumstances and financial resources. UAB “Virtualios valiutos” does not take any responsibility for the risks relating to Virtual Assets, including those indicated above.