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Risk Disclosures

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Risk Disclosures

By using and accessing the Koi Trading Site, you acknowledge review of the most current version of these Risk Disclosures prior to each such use and assumption of the risks disclosed herein. Koi may modify these Risk Disclosures at any time and without prior notice. Your continued use of and access to the Koi Trading Site constitutes your acknowledgement of, and agreement to, the then current Risk Disclosures. All capitalized terms used but not defined in this Policy have the meaning given to them in our Terms of Service.

Digital currencies (also known as cryptocurrencies and/or virtual currencies) represent a speculative investment and involve a high degree of risk. Traders should have the financial ability, sophistication/experience and willingness to bear the risks of a digital currency trade.

At present, digital currencies are issued primarily by private entities and have no legal tender status in the United States. Digital currencies are not securities. Neither is Koi Trading an entity regulated by the SEC. Trading virtual currencies can lead to large and immediate financial losses because of, among other things, volatile market prices, flash crashes, general market manipulation, and cybersecurity risks.

You should also note and assume the following risks:

  • Digital currency accounts and value balances are generally not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections;
  • Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of digital currency;
  • Transactions in digital currency may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;
  • Some digital currency transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the customer initiates the transaction;
  • The value of digital currency may be derived from the continued willingness of market participants to exchange fiat currency for digital currency, which may result in the potential for permanent and total loss of value of a particular digital currency should the market for that digital currency disappear;
  • There is no assurance that a person who accepts a digital currency as payment today will continue to do so in the future;
  • The volatility and unpredictability of the price of digital currency relative to fiat currency may result in significant loss over a short period of time;
  • The nature of digital currency may lead to an increased risk of fraud or cyberattack;
  • The nature of digital currency means that any technological difficulties experienced by Genesis may prevent the access or use of a counterparty’s digital currency; and
  • At present, Koi maintains no bond, insurance, or trust account for the benefit of its counterparties.