Risk Disclosure
Crypto assets are high-risk. You could lose some or all of the money you put in. Only commit funds that you can afford to lose and that do not form part of your emergency savings or essential expenses.
1. Purpose of this disclosure
This Risk Disclosure sets out the principal risks associated with using the Vermögensaufbau Platform, including its automated trading tools, dashboards and calculators. It should be read together with our Terms of Service and Privacy Policy. It does not describe every risk, and you should not rely on it as a substitute for your own research or independent professional advice.
2. Price volatility
Bitcoin, Ethereum and other crypto assets have historically experienced extreme price swings, sometimes within minutes or hours. Prices can fall to zero. Market sentiment, regulatory announcements, technological failures, security incidents and macroeconomic events can all cause sudden and substantial losses.
3. Automated trading risk
Automated strategies execute orders according to predefined rules. These rules may perform poorly in market conditions they were not designed for. Automation can amplify losses if settings are wrong, if data is delayed or inaccurate, or if the strategy repeatedly triggers in a falling market. Automated orders may also execute at prices materially different from those displayed.
4. Illustrations and projections
Calculators, charts and example returns shown on the Platform are hypothetical. They are simplified illustrations based on assumed inputs and do not reflect actual trading results, fees, taxes, slippage or market conditions. No figure shown should be read as a promise or guarantee of profit. Past performance and backtested results are not reliable indicators of future returns.
5. Liquidity and execution risk
Some crypto assets may be difficult to sell quickly at a fair price, particularly during periods of stress or for smaller tokens. Trading halts, network congestion and exchange outages can prevent you from closing positions when you wish to do so.
6. Custody and third-party risk
The Platform relies on third-party exchanges, wallets, data providers and infrastructure. These services may fail, become insolvent, be hacked, freeze withdrawals or change their terms. Losses caused by third parties may not be recoverable. Private keys or recovery phrases that are lost or stolen may result in permanent loss of assets.
7. Regulatory and legal protection
Most cryptoasset activities are not regulated by the Financial Conduct Authority in the United Kingdom, and cryptoassets are generally not covered by the Financial Services Compensation Scheme. If something goes wrong, you may have limited or no access to compensation. Rules that apply to crypto assets, promotions and trading platforms may change, which could affect your ability to use the Platform or to access funds.
8. Cyber-security and operational risk
Online platforms are targets for phishing, malware, account takeover and denial-of-service attacks. Software errors, maintenance, power or connectivity problems may interrupt access or cause incorrect outcomes. We take reasonable precautions, but we cannot eliminate these risks. You should protect your own devices and credentials.
9. Tax considerations
The tax treatment of crypto assets depends on your individual circumstances and may change over time. Disposals, exchanges and some other transactions may give rise to Capital Gains Tax or other liabilities, and you are responsible for keeping records and reporting your position to HM Revenue and Customs where required. We do not provide tax advice.
10. Leverage and borrowing
If you borrow money to fund your activity on the Platform, or use products that involve leverage, losses can exceed your initial deposit. Borrowing to invest increases the risk of significant financial harm and is not suitable for most people.
11. Your responsibilities
You are responsible for understanding the assets and strategies you use, for reviewing your settings regularly and for deciding whether crypto activity is appropriate for your circumstances. Consider your financial situation, objectives, experience and attitude to risk. If you are unsure, seek independent advice from a suitably qualified professional before proceeding.
12. Contact
If you have questions about these risks, please contact us at [email protected] or by telephone at +44 20 7946 2839. Nothing in this disclosure creates an obligation to provide personal advice.