Please consider the information in this Risk Disclosure Statement ("Statement") as a general overview of investment risks made for your awareness only. We do not intend to provide investment or legal advice through this Statement and make no representation that the investments or services described herein are suitable for you or that the information contained herein is reliable, accurate, or complete.
We do not guarantee or make any representations or assume any liability about financial results based on the use of the information in this Statement and further do not advise relying on such information in the process of making a fully informed investment decision.
The risks outlined in this statement are not exhaustive and only describe the general nature of the risks involved with trading Virtual Assets. The intention of this statement is just to outline the risks, and not to discuss in detail all the risks associated with holding or trading Virtual Assets. Clients should undertake their assessment as to the suitability of trading in Virtual Assets or Stablecoins based on their investigations, research, and based on their experience, financial resources, and objectives. At the further outset, Investment in securities involves certain considerations and a high degree of risk. You should not deal in designated investments unless you understand their nature and the extent of your risk exposure. Not all investments are suitable or appropriate for all investors. You should make sure that your chosen investment is appropriate and suitable for you. Before committing to any specific type of designated investment, you should understand the nature and risks associated with that type of investment. In case a designated investment is composed of two or more different designated investments or services, the associated risks are likely to be greater than the risks associated with any of the components. Whilst we cannot disclose all possible risks or significant aspects regarding individual designated investments, you should note the following risks.
The term 'VISIION' or 'us' or 'we' refers to the owner of the website i.e., https://visiion.io/en, is for information purposes only and is not an offer or recommendation to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy.
Clients are strongly advised to read this Risk Disclosure Statement carefully before deciding to start trading on the platform.
The Risk Disclosure Statement addresses the risks that are associated with trading and transacting in Virtual Assets below:
(i) Assets are not Legal Tender; (ii) Loss of Value, Volatility and Uncertainty of Future performance; (iii) Market Forces; (iv) Financial Crime and Cyber Attacks; (v) Availability of Virtual Assets; (vi) Technology Risk; (vii) Regulatory Risk (viii) Ambiguous Market Dynamics (ix) Continuous Trading Dynamics (x) Digital Asset Platforms & Intermediaries (xi) Private Key
RISK OF LOSS IN TRADING VIRTUAL ASSETS CAN BE SUBSTANTIAL AND YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD BE AWARE OF THE FOLLOWING:
(i) Virtual Assets are Not Legal Tender: Most Virtual Assets are not backed by any central government or legal tender, meaning each country has different standards. There is no assurance that a person who accepts a Virtual Asset as payment today will continue to do so in the future. Holders of virtual assets put their trust in a digital, decentralized, and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity, and neither vendors nor individuals must accept Virtual assets as payment in the future;
(ii) Loss of Value, Volatility, and Uncertainty of Future Performance: There is limited or no fundamental reasoning behind the pricing of Virtual Assets, creating the risk of volatility and unpredictability in the price of Virtual Assets relative to Fiat Currencies. Virtual Assets have had historically higher price volatility than Fiat Currencies with no or limited tangible underlying for price reference, allowing irrational and exorbitant moves in price as the process for valuation is speculative and uncertain.
(iii) Market Forces: Trading in Virtual Assets may be susceptible to irrational market forces, such as speculative bubbles, manipulation, scams, and fraud.
(iv) Financial Crime and Cyber Attacks: Cyber Crime is more prevalent as the ecosystem is digital and devoid of traditional governance, examples such as should be recognized. The nature of Virtual Assets may lead to an increased risk of cyber-attack as the ecosystem is digital. For example, a 51% attack is an attack on a blockchain by any Person or group of Persons who control more than 50% of the network's mining hash rate. Attackers with majority control of the network can interrupt the recording of new blocks by preventing other miners from completing blocks, altering payment history, and subverting funds. Clients are susceptible to Malware fake/hijacked addresses and other forms of cyber-attacks that holding Virtual Assets may pose and Clients should always take care of passwords and double-check the addresses and URLs before loading software.
(v) Availability of Virtual Assets: VISION makes no guarantee to the availability or time of providing clients with the ability to sell or purchase Virtual Assets on the platform. The availability of assets is outside of VISIION's control and is dependent and counterparties being willing to sell the desired virtual asset and vice versa. Virtual Assets are required to be approved by the Regulated Authority for trading on the Platform. Such approval may be withdrawn at any time. Any Virtual Asset may be delisted at any time without any notice or consent. Similarly, any new Virtual Asset arising from a hard fork or similar changes to a Virtual Asset's protocols will require approval by the Regulator before being traded on the Platform.
(vi) Technology Risk: The risks of Virtual Assets being transacted via new technologies, (including distributed ledger technologies ('DLT') concerning, among other things, anonymity, irreversibility of transactions, accidental transactions, transaction recording and settlement. Transactions in Virtual Assets on the blockchain relies on the proper functioning of complex software, which exacerbates the risk of access to or use of Virtual Assets being impaired or prevented. Failing to acknowledge this can prevent Clients from use/access to Virtual Assets.
(vii) Regulatory Risk: Many trading venues and Virtual Asset services are not regulated, or subject to limited regulation, and Clients should choose counterparties after careful due diligence. You further acknowledge the above list of risks is non-exhaustive and there may also be unpredictable risks.
(viii) Ambiguous Market Dynamics: Virtual Assets are stored as blockchain addresses, accessed via private keys, which could be managed by an individual or a custodian. While these transactions are public on blockchains, the public address doesn't reveal the key's owner or controller. Unlike traditional financial platforms, Virtual Asset exchanges and custodians might not always disclose the asset's owner. This lack of transparency can complicate asset verification for participants, regulators, and auditors, potentially elevating the risks of manipulation and fraud.
(ix) Continuous Trading Dynamics: Unlike traditional securities platforms that operate during set hours, Virtual Assets can be traded round-the-clock, given the network's functionality. Supported by global cryptocurrency exchanges, Virtual Assets face ever-evolving market conditions. This continuous trading might lead to situations where investors can't react to swift market shifts outside typical business hours.
(x) Digital Asset Platforms & Intermediaries: Virtual asset exchanges, being relatively nascent and often unregulated, carry inherent risks. The unclear nature of the spot market and limited oversight might mean exchanges don't always have adequate assets to meet customer obligations. Such shortcomings might go unnoticed. Many of these platforms have faced outages, delays, and high operational risks compared to regulated exchanges. Similar risks extend to intermediaries and custodians in the digital asset realm, posing potential threats to their customers and the broader digital asset market.
(xi) Private Key Vulnerabilities: Virtual Assets are controlled by unique private keys linked to digital wallets. While public keys are disclosed in transactions, the associated private keys must remain confidential to prevent unauthorized access. If a private key is lost or compromised without a backup, access to the associated Digital Assets becomes impossible, often irreversibly. This risk, heightened by varying technological designs and access methods, can lead to significant losses if private keys are misplaced.
(xii) Blockchain Technology Concerns: Virtual Assets, rooted in evolving cryptographic protocols, represent a rapidly changing industry influenced by multifaceted factors. As these networks grow, they might reveal technical challenges requiring decentralized solutions. Past incidents have exposed flaws in Virtual Asset networks, leading to compromised user data or asset theft. If the cryptography behind Virtual Assets is found defective, or if advances in technology render it ineffective, malicious entities could exploit these vulnerabilities. Any decline in confidence in Virtual Asset technology could dampen demand, impacting the broader Virtual Asset market.
(xiii) Protocol Changes and Forking Risks: Virtual Asset networks often lack a central authority. Anyone can modify the network's software, and these changes are proposed via software updates. If a significant majority adopts these changes, the network remains unified. However, if only a portion adopts them, it can lead to "forks" in the blockchain, creating two versions of the Virtual Asset. While some forks merge back, others remain permanent. After a fork, the combined value of the new assets might not equal the original's value, leading to potential losses. If a custodian doesn't support a forked asset, investors could face adverse impacts. Malicious actors might also intentionally create forks, and if a majority adopts a detrimental protocol change, it could negatively affect investments.
The information disseminated by VISIION is not to be construed as offering financial, investment, or any form of advisory service. Instead, it should be regarded as general market commentary. VISIION refrains from providing personalized recommendations or advising on the merits of specific transactions. You are solely responsible for making decisions regarding transactions, and VISIION offers no assurances regarding the outcomes. Any investment decisions made based on VISIION's information are undertaken at your sole discretion and risk.
Our interactions with you are premised on the understanding that you are acting as the principal and not as an agent representing another principal. Should you neglect to inform us of another entity or software operating on your behalf, we reserve the right to terminate the agreement or nullify any transactions.
You might incur interest, taxes, fees, and other charges when trading with us. These expenses can impact your net profits or amplify your losses. Tax authorities might challenge your interpretation of our services, leading to potential tax consequences. It's essential to consult your tax advisor regarding these services.
Upon entering any transaction with VISIION, you hereby affirm and concur:
(a) You've procured, perused, and comprehended the Risk Disclosure Statement, and have consulted advisors where deemed necessary.
(b) The disclosed risk factors may not encompass all potential risks associated with the transactions.
(c) You've independently assessed the legality, suitability, and appropriateness of the transaction, considering your financial and investment objectives.
(d) VISIION, or its associates, do not serve as your fiduciary or advisor regarding any transaction.
(e) You haven't relied on any communication from VISIION or its associates as investment counsel or endorsement for any transaction.
(f) You're aware of the tax implications, especially concerning Digital Assets, within your jurisdiction.
(g) VISIION holds no liability for your investments or transactions. Any communication from VISIION is purely informational and not advisory.
(h) In case of discrepancies between the English version of this document and its translations, the English version prevails.
(i) This Risk Disclosure Statement can be modified periodically. Continued use of our services post-modification implies your consent.
(j) No communication from VISIION guarantees anticipated outcomes for any transaction.
(k) You qualify as a professional investor or equivalent under your country's laws and are eligible for the services/products mentioned.
(l) Your engagement with VISIION is solely based on your initiative, without any solicitation from VISIION or its associates.
(m) Any information or documentation received from VISIION was upon your request.
(n) Your decision to utilize our services/products is based on your independent evaluation.
(o) Should any of the above statements become inaccurate, you commit to promptly notifying VISIION in writing.
