Ebonex Australia Pty Ltd (ACN 649 668 011) (referred to as “Ebonex”, “we”, “our” or “us”) issues this statement. While we take all reasonable precautions to protect your Ebonex account, it is not possible to control all risks. Please read and understand the information contained in this Risk Warning Statement (also referred to herein as the “Statement”) for this purpose. This Statement applies to Ebonex and its related entities or affiliates’ websites, applications, products, and services that display or provide links to this Statement.
Ebonex is a cryptocurrency trading platform and trading in cryptocurrency is subject to high risk and volatility. In this Statement, we highlight to you some of the risks which may apply to you when you conduct cryptocurrency trading activities on our platform. We recommend you seek independent financial, legal, taxation, and/or other advice before deciding to avail yourself of our products and services. If you do not agree with or understand this Statement, please do not use or access our products or services. This Statement provides a non-exhaustive outline of the various risks inherent in trading cryptocurrency, and by using our products or services, you shall be deemed to have acknowledged and accepted these risks.
(1) Trading in Cryptocurrency
Trading in cryptocurrency involves significant risk and may result in the loss of your invested capital. It is a high-risk activity and may not be suitable for the general public, as the prices of cryptocurrency are subject to sharp, speculative swings. You must ensure that you fully understand the risks involved and take into consideration your level of experience, investment preference, risk appetite, investment objectives, and financial circumstances, and you should seek independent financial advice if necessary.
(2) No Financial Advice
We do not provide financial advice in relation to our products or services. We may provide factual information about a transactional procedure, potential risks or market trend, but this is in no way financial advice and should not be construed as financial advice. Any decision to use our products or services, whether for the purpose of buying or selling tokens, or trading in spot or derivative markets, is solely your own. No communication or information provided to you by us is intended or to be construed as investment advice, financial advice, trading advice, or any other sort of advice.
You are solely responsible for your own decisions in determining whether any investment type, investment strategy or related transaction is appropriate for you in accordance with your level of experience, investment preference, risk appetite, investment objectives, and financial circumstances.
(3) No Monitoring Services
Under no circumstances we shall be considered as your broker, intermediary, agent, or advisor. We have no fiduciary relationship or obligation with you in connection with any trades or other decisions or activities undertaken by you when using our services.
We do not monitor whether your use our services is consistent with your risk appetite and investment objectives. It is entirely up to you to assess:
(i) whether your financial resources are adequate for your financial activity with us; and
(ii) whether the risk of our products and services you use align with your risk appetite.
(4) Taxation Liability
The taxation of cryptocurrency is uncertain and subject to change in many jurisdictions, and you are solely responsible to account for any taxes that you might be liable to, and how they shall apply to you and your activities when using our services. It is your responsibility to report and pay any taxes that may arise from transacting through our services, and you acknowledge that we do not provide taxation advice in relation to these transactions. If you have any doubts about your tax status or obligations when using our services, we advise you to consult a taxation professional before continuing to use our services.
You acknowledge that, as and when required by the regulators, we will report information regarding your transactions, transfers, distributions or payments to tax or other public authorities. Similarly, as and when required by applicable law, we may withhold taxes related to your transactions, transfers, distributions or payments. Applicable legislation could also prompt us to request you for additional tax information, status, certificates or documentation. You acknowledge that any failure to adequately respond to these requests within the timeframe defined, may result in your taxes being withheld by us, to be remitted to tax authorities as defined by relevant law. You are encouraged to seek a taxation professional for independent tax advice regarding the above and before making any cryptocurrency transaction.
(5) Other Risks
Transacting in cryptocurrency may subject you to other risks. Here, we highlight to you those risks which you may come across, but please take note that this is not an exhaustive list.
Market Risk
Price volatility or changes in market value may be significant and may occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and any returns can go up or down and you may not get back the amount you had invested.
Liquidity Risk
Cryptocurrency may have limited liquidity which may make it difficult or impossible for you to sell or exit a position when you wish to do so, and you may experience difficulty in converting your cryptocurrency into fiat currency. This may occur at any time, including at times of rapid price movements.
Availability Risk
We do not guarantee that our services will be available at all times. Our services may subject to unplanned service outages, delays or network congestion. In such circumstances it may not be possible for you to buy, sell, store, transfer, send or receive cryptocurrency as and when you wish to do so.
Third Party Risk
Third parties, such as financial intermediaries, payment service providers, and custodians may be involved in the provision of our services. You may then become subject to the terms & conditions of these third parties, and we are not responsible for any loss that these third parties may cause you.
Security Risk
You are responsible for keeping your account secure, including but not limited to keeping your login details and personal information safe. You are responsible for all the transactions conducted under your account, whether you authorised them or not. Transactions in cryptocurrency may be irreversible, and losses due to fraudulent or unauthorised transactions may be irrecoverable.
Regulatory Risk
Changes in laws and regulations in many jurisdictions may materially affect the value of cryptocurrency. This risk is unpredictable and may vary from market to market.
Monitoring Risks
Cryptocurrency markets are operating 24 hours a day, 7 days a week. Price changes may happen rapidly at any time, within or outside normal business hours.
Technological Risk
Cryptocurrency, as with any other digital assets, is subject technological risks. Such risks include but are not limited to:
(i) the advancement of technology potentially rendering cryptocurrency obsolete;
(ii) cyber-attacks on the protocol or technologies on which cryptocurrency depends, such as DDoS attacks, phishing, hacking, smurfing, and spoofing causing undesirable outcomes;
(iii) unforeseen circumstances disrupting the underlying technologies or the ecosystem on which cryptocurrency relies may cause the collapse of the whole ecosystem; and
(iv) identity hacking or fraudulent transactions in connection with your account may cause you significant financial loss.
