Whilst buying, selling and trading Bitcoins can in some aspects be more advantageous when compared to fiat currencies, it is important for individual customers (hereinafter referred to as “you”) to fully understand the risks involved before deciding to trade Bitcoins. Bitcoin should be considered a high risk asset for the following reasons –
- there is no valuation guarantee. The valuation of Bitcoin can fluctuate over a short period of time, whilst this means that it is possible to make a significant gain from your investment, it could also lead to a loss of money.
- transactions are not reversible. Once Bitcoins are transferred, it is only up to the recipient to send the Bitcoins transferred back to you. Therefore, it is important that you only make transfers to businesses or individuals that you know and trust.
- transactions are stored publicly and permanently on the network. This means that anyone can see the balance and transactions of any Bitcoin address even though the identity of the user behind the address remains unknown. It is your responsibility to ensure that you use a different address for every transaction to protect your own privacy.
In view of the above, it is your responsibility to ensure that you have adequate financial resources to bear such risks and that you monitor your position carefully. You should not invest money that you cannot afford to lose, however you cannot lose more than the equity in your account. Cubits shall not be held responsible for any losses you may suffer.