Risk disclosure

This Risk Disclosure Statement provides you with information about some of the risks associated with use of Soteria's Platform and other services offered by Soteria Limited. The information presented in this Risk Disclosure Statement is not comprehensive and does not reflect all of the risks (or other important factors) you should consider before using the Services. You must make your own independent decision to access or use the Services and should seek any advice that you consider necessary or desirable (including financial and/or legal advice) from independent advisers. Your capital is at risk. Terms not otherwise defined in this Risk Disclosure Statement shall bear the same meanings attributed to them in the Terms of Service.

A. General asset conversion and financial risks

1. Risks associated with Indices

Some of the Services on the Platform, rely on an “Index Price”, for example when you convert your cryptocurrencies into stablecoins - for more information on our use of indices in respect of any asset conversion, please see the relevant description pages on our website; details of specific indices, including their composition and how the Index Price is calculated, as well as how certain safeguards are incorporated, can be found on our website. The methodology for calculation and publication of each Index may mean that it does not track other publicly-reported prices of its underlying cryptocurrency. The Index and its value may deviate substantially from the publicly reported price of cryptocurrency from any given price source. In addition, as the methodology for determining each Index uses information from specifically identified third party exchanges, movements in the value and volume of cryptocurrency transactions on such exchanges and any Index calculation failures may affect asset conversion rates.

The composition, calculation, and safeguards incorporated within any Index are subject to change at any time without notice in Soteria’s sole and absolute discretion.

The Indices may be administered and calculated by Soteria Limited or any third party service providers. Index administrators (including Soteria Limited) can add, delete or substitute the components of the Indices or make other changes to the methodology of calculating the value of the Index at any time. The modification of the components of the Index may affect its value, as a newly added component may perform significantly worse or better than the component it replaces. Soteria Limited may also alter, discontinue or suspend calculation or dissemination of an Index at any time. Soteria Limited may take any action in respect of the Indices without regard to the interests of a Member. Any change in the methodology used may affect the Index value and may result in a Member incurring losses or gains. Soteria Limited is not responsible for any direct or consequential losses a Member may incur as a result (directly or indirectly) of a change in the Index methodology.

2. Accuracy of information

While Soteria Limited endeavours to keep information displayed on the Services as accurately as possible, there is a risk that this may not be correct, complete or updated.

 

3. Price volatility

The price of cryptocurrencies can be highly unpredictable and volatile when compared to other assets such as stocks, bonds and other tradeable instruments. You should not deal in cryptocurrency unless you understand their nature and the extent of your exposure to risk. Any spreads or other fees associated with the conversion of assets on the Platform may make them more volatile.

4. Liquidity risk

The liquidity for the asset conversions on the Platform will depend on, among other things, supply and demand, commercial and speculative interest in cryptocurrency derivatives on other trading platforms and cryptocurrency exchanges. As asset conversions on the Platform are executed in a closed system, there is a risk that there may be limited volume and liquidity on our Platform.

A lack of liquidity in any market for asset conversion on the Platform may result in delays in asset conversion execution and some asset conversion requests may not execute at all; these effects may be exacerbated where an order is larger.

5. Support of listed cryptocurrency

If at any time any of the cryptocurrency that form the subject of your asset conversion is delisted or the Platform no longer supports the asset conversion for any reason, then the applicable asset conversion order will be cancelled.

B. Regulatory and Oversight Risk

1. General regulatory risk

The regulatory environment concerning cryptocurrencies continues to develop. The application and interpretation of existing laws and regulations are often largely untested and there is a lack of certainty as to how they will be applied. New laws and regulations will be promulgated in the future that apply to blockchain technology and cryptocurrencies, and related services providers, and no assurance can be given that any such changes will not adversely affect cryptocurrencies generally or the Services. It is not possible to predict how such changes would affect the price and liquidity of cryptocurrency derivatives, cryptocurrencies generally, or the Services.

Regulatory actions could negatively impact cryptocurrencies in various ways, including, for purposes of illustration only, through a determination (with retrospective or prospective effect) that cryptocurrencies, stablecoins or their derivatives are regulated financial instruments requiring registration or licensing in certain jurisdictions. Soteria Limited may have to limit the availability of certain cryptocurrencies or disallow Members based on their citizenship, residence or location from engaging in any transactions on the Platform if doing so becomes commercially unsustainable or legally prohibited, which could materially affect the price and liquidity of assets on the Platform.

You understand that ultimately it is your responsibility to make sure that you comply with any and all local regulations, directives, restrictions and laws in your place(s) of residence before using our Services. We strictly state that we do not permit the use of our Services by users from a jurisdiction in which the use of our Services is not permitted (including, without limitation, Restricted Jurisdictions). We are not offering or soliciting the use of our Services to any person located in any Restricted Jurisdiction or any other jurisdiction in which the specific use of our Services is not authorized or is otherwise prohibited by local laws.

C. Cyber Risk

1. Risks relating to cybersecurity

Malicious individuals, groups or organizations may attempt to interfere with the Platform in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, coordinated attacks, and account takeovers which could negatively affect the operation of the Platform and the availability of the Services.

With the increased use of technologies and the dependence on computer systems to perform necessary business functions, cryptocurrencies and the Services are susceptible to operational and information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyberattacks include but are not limited to gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyberattacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial of service attacks on infrastructure. Cyber security failures or breaches of the third party service providers (including, but not limited to, software providers, cloud services providers, index providers, the administrator and transfer agent) could have a negative impact on cryptocurrencies and the Services.

It is your responsibility to ensure (i) that your access credentials are kept secure and confidential, including your email, username, and password, as well as access to or use of any two factor authentication hardware, software, or secret and (ii) the security and integrity of any systems (both hardware and software) or services that you use to access the Services.

2. Risks relating to platform downtime and IT maintenance

Soteria Limited may, from time to time, perform maintenance on the Platform, routine or otherwise. This may lead to platform downtime and lack of access to the Platform, potentially resulting in a delay or cancellation of a submitted order yet to be processed and orders placed during maintenance or downtime.

D. Access risks

There are a series of inherent risks with the use of the mobile and/or web-based trading technology such as latency in the prices provided, and other issues that are a result of connectivity (including, without limitation, the use of mobile networks).

Prices displayed on the Platform are solely an indication of the executable rates and may not reflect the actual executed or executable price of an order.

The Platform utilises public communication network circuits for the transmission of messages. Soteria Limited shall not be liable for any and all circumstances in which you experience a delay in price quotation or an inability to trade caused by network transmission problems or restrictions or any other problems outside our direct control, which include but are not limited to the strength of the mobile signal, network latency, or any other issues that may arise between you and any internet service provider, phone service provider or any other service provider.

Please note further that some of the features available on the Trading Platform may not be available on any mobile application.

Soteria Limited's mobile applications may require Members to download and install updates to the application or to their device’s operating system as such updates are made available. Failure to do so might lead to certain parts of the Services (including trading functions) becoming inaccessible to Members until such update has been successfully downloaded and installed. Performance issues and security risks may arise if Soteria Limited's mobile applications are used on devices with customised or otherwise non-standard operating software or as a result of other software installed on such devices.