Cryptocurrency Risk Disclosures
Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Where permitted, cryptocurrency may be exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. The value of any cryptocurrency, including any digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
Trading cryptocurrency is extremely risky and is vulnerable to market volatility, market manipulation, and cybersecurity risks. Cryptocurrencies are not regulated like traditional assets or investments and are not protected by the FDIC (as your cash deposit accounts typically are) or SIPC insurance (as your stock investments typically are). Changes in laws and regulations may negatively impact the ability to acquire, own, hold, sell or use cryptocurrency, and therefore may adversely affect its value.
Cryptocurrency trading is not suitable for all investors and each investor should conduct extensive research into cryptocurrency markets and each individual cryptocurrency before investing. Volatility of cryptocurrency markets may lead to significant losses in a short period of time.
In addition to normal market risks, you may experience losses due to one or more of the following circumstances that are beyond our control: halted or suspended asset offerings due to market conditions, system failures, hardware failures, software failures, network connectivity disruptions, and data corruption. Several federal agencies have also published advisory documents surrounding the risks of virtual currency. For more information see, the CFPB’s Consumer Advisory, the CFTC’s Customer Advisory, the SEC’s Investor Alert, and FINRA’s Investor Alert.