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Risk Disclosure Statement

Last Updated: February 19, 2026

Important Warning

Trading and investing in cryptocurrencies involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is appropriate for you in light of your financial condition. You could lose some or all of your investment.

1. Introduction

This Risk Disclosure Statement is provided to inform you of the risks associated with cryptocurrency trading and using VaultPay's services. Please read this document carefully before using our services.

2. Market Risks

2.1 Price Volatility

Cryptocurrency prices are extremely volatile and can fluctuate significantly in a short period:

  • Prices can increase or decrease by double-digit percentages within hours
  • Historical performance is not indicative of future results
  • Market manipulation may affect prices
  • Low liquidity can lead to large price swings

2.2 Market Liquidity

Cryptocurrency markets may have limited liquidity, which can:

  • Result in difficulty executing large orders
  • Cause significant price slippage
  • Lead to delayed or failed transactions

2.3 Market Hours

Unlike traditional markets, cryptocurrency markets operate 24/7, meaning:

  • Price movements can occur at any time
  • You may not be able to react to market changes immediately
  • News and events can impact prices outside business hours

3. Technology Risks

3.1 Blockchain Technology

  • Blockchain technology is relatively new and evolving
  • Smart contract bugs or vulnerabilities may cause losses
  • Network congestion can delay transactions
  • Hard forks may affect your holdings

3.2 Cybersecurity Risks

  • Hacking and cyber attacks may compromise funds
  • Phishing attacks targeting cryptocurrency users
  • Malware designed to steal cryptocurrency
  • Social engineering attacks

3.3 Transaction Risks

  • Blockchain transactions are irreversible
  • Sending to wrong addresses results in permanent loss
  • Transaction fees vary based on network conditions
  • Transactions may be delayed due to network congestion

4. Regulatory Risks

4.1 Legal and Regulatory Changes

  • Cryptocurrency regulations vary by jurisdiction and are evolving
  • New laws may restrict or prohibit cryptocurrency activities
  • Tax treatment of cryptocurrencies may change
  • Regulatory enforcement actions may affect the market

4.2 Compliance Requirements

  • KYC/AML requirements may limit access to services
  • We may be required to freeze assets pending investigation
  • Reporting requirements may affect privacy

5. Operational Risks

5.1 Platform Risks

  • System outages or maintenance may prevent access
  • Software bugs may affect trading or balances
  • Third-party service provider failures
  • Data loss or corruption

5.2 Custody Risks

  • Cryptocurrency held on exchanges may be at risk
  • Exchange insolvency may result in loss of funds
  • Insurance coverage may be limited or unavailable

6. Financial Risks

6.1 Loss of Capital

  • You may lose your entire investment
  • Losses can exceed your initial investment in certain situations
  • Past performance does not guarantee future results

6.2 Lack of Protection

  • Cryptocurrencies are not legal tender in most jurisdictions
  • No government deposit insurance or protection
  • Limited recourse in case of disputes

7. Other Risks

7.1 Project Risks

  • Cryptocurrency projects may fail or be abandoned
  • Team members may leave or act maliciously
  • Whitepapers and roadmaps may not be fulfilled
  • Tokens may become worthless

7.2 Information Risks

  • Market information may be incomplete or inaccurate
  • Rumors and misinformation can affect prices
  • Difficulty in valuing cryptocurrencies accurately

8. Risk Mitigation

While risks cannot be eliminated, you can take steps to manage them:

  • Only invest what you can afford to lose
  • Diversify your investments
  • Use strong security practices (2FA, unique passwords)
  • Keep software and devices updated
  • Verify addresses carefully before sending
  • Stay informed about market developments
  • Consider professional financial advice

9. Acknowledgment

By using VaultPay's services, you acknowledge that:

  • You have read and understood this Risk Disclosure Statement
  • You understand the risks involved in cryptocurrency trading
  • You are solely responsible for your investment decisions
  • You have the financial capacity to bear potential losses
  • You will not hold VaultPay liable for losses resulting from market conditions

10. Disclaimer

This Risk Disclosure Statement does not disclose all risks associated with cryptocurrencies. You should conduct your own research and seek independent advice before making any investment decisions.

VaultPay does not provide investment, financial, legal, or tax advice. Nothing on our platform should be construed as such advice.

11. Contact Us

If you have questions about the risks described in this document, please contact us:

Email: support@vaultpay.io