Product Risk
Trading in derivatives of digital assets is highly risky and is an unregulated activity. The inherent nature of derivative products produces risks that the User may not have envisioned while entering into the trade. CoinDCX advises all Users to adequately inform themselves of the functioning of derivative products, the associated pay-off scenarios and the Terms of Use of CoinDCX.
Market Risk
Market prices for digital assets can be volatile and highly unpredictable. CoinDCX makes no representations or warranties regarding the future price of any digital asset since whether the market price of a digital asset will go up or down is speculation and not subject to an objective prediction. Users are advised to abstain from entering into trades on the basis of speculative information received from any third-party that is guaranteeing or making claims of certain and sure pay-offs in the market for digital assets.
The market for digital assets can at times be highly illiquid. This may result in a scarcity of persons who are willing to trade at the same time. Thinly traded or illiquid markets have a potential increased risk of loss because they can experience high volatility of prices and in such markets, market participants may find it impossible to liquidate market positions except at very unfavourable prices. There is no guarantee that the markets for any digital asset will be active and liquid or permit the User to establish or liquidate positions in the digital assets when desired or at favourable prices.
Users are required to make a margin deposit before trading derivatives of crypto assets.
When trading derivatives of crypto assets, the amount being traded may exceed the amount in the User’s margin deposit, which may lead to losses being incurred in excess of the amount in the customer’s margin deposit.
Taxation Risk
Tax treatment of the acquisition or disposal of such cryptocurrency or cryptographic assets might depend on whether they are classified as securities, assets, currency or otherwise. As the tax characterisation of the digital assets remains indeterminate, Users must seek their own tax advice in connection with the trading of digital assets and the services, which may result in adverse tax consequences and/or tax reporting requirements for the Users.
Regulatory Risk
Regulation of cryptocurrencies and cryptocurrency exchanges is currently undeveloped or underdeveloped and may not rapidly evolve. Such regulation also varies significantly among jurisdictions, subject to significant uncertainty. Various legislative and executive bodies in countries around the world may in the future adopt laws, regulations, guidance, or other actions, which may severely impact the provision of the services by CoinDCX. Inability of, and/or failure by CoinDCX and its affiliates and/or the Users to comply with any laws, rules and regulations, some of which may not exist yet or are subject to interpretation and may be subject to change, could result in a variety of adverse consequences against the User, including civil penalties and fines. CoinDCX shall not be responsible to the User for such or other consequences and/or damages.
New or changing laws and regulations or interpretations of existing laws and regulations may materially and adversely impact the value of the digital assets, the liquidity of the digital assets, and the ability of Users to access the interface.
Risk of Account Freeze
CoinDCX may freeze the User’s account, including any digital assets’ wallet and any subaccount, in the event that the User is believed to be engaged in suspicious activity or to be in breach of any of the Terms of Use or in the event that CoinDCX is otherwise directed to freeze the User’s account. If the User’s account is frozen, the User will not be able to trade or to make transfers to or from their Account. This may result in the closure of the User’s open orders.
Risks Associated with Financing Activities
When a User has utilized financing for entering into a trade for the purchase or sale of a digital asset, they run the risk of losing their provided financing or being unable to repay such financing. Users should know all of the terms of any contracts they enter and how their trading strategies and other market and risk factors can affect their financing obligations.
Accuracy of Information
The interface and services provided by CoinDCX and its affiliates are provided on an “as is” and “as available” basis. CoinDCX and its affiliates do not grant any warranties or make any representation, express or implied or otherwise, as to the accessibility, quality, suitability, accuracy, adequacy, or completeness of the interface or the services, and expressly disclaim any liability for errors, delays, or omissions in, or for any action taken in reliance on, the interface and the services.
CoinDCX, its affiliates and its directors, officials and employees do not make or purport to make, and hereby disclaim, any representation, warranty or undertaking in any form whatsoever to any entity or person, including any representation, warranty or undertaking in relation to (i) the accuracy and completeness of any of the information set out on the interface, including but not limited to price data of the digital assets or fiat currencies; and (ii) the time taken to effect any transactions involving third parties outside of its control.
In an effort to continue to provide Users with as complete and accurate information as possible, information may be changed or updated by CoinDCX from time to time without notice, including without limitation, information regarding CoinDCX’s policies, products and services. Accordingly, the User should verify all information before relying on it, and all decisions based on information contained on the Interface are the User’s sole responsibility and CoinDCX shall have no liability for such decisions. Links to third-party materials (including without limitation websites) may be provided as a convenience but are not controlled by CoinDCX. The User acknowledges and agrees that CoinDCX shall not be responsible for any aspect of the information, content, or services contained in any third-party materials or on any third-party sites accessible or linked to the interface.
No Liability
The User should also be aware that SMS, SIM, and email services are vulnerable to spoofing, phishing attacks, SIM swap, SIM jacking, and account takeover and should use care in reviewing messages purporting to originate from CoinDCX. The User should always log into their account on the interface to review any transactions or required actions if such User has any uncertainty regarding the authenticity of any communication or notice.
While CoinDCX has put in place security measures to prevent unauthorised access to the accounts of Users, CoinDCX makes no representation of them being fool proof or adequate. CoinDCX, its affiliates, and its directors, officials and employees will not and cannot be held liable for any unauthorised access to the account(s) of the Users and/or for any loss or damage caused, including due to loss of digital assets held in or through any such accounts.
The User shall be responsible for maintaining adequate security and control of any and all IDs, passwords, hints, personal identification numbers (PINs), API keys or any other codes that the User uses to access the services. Any loss or compromise of the foregoing information and/or the User’s personal information may result in unauthorised access to such User’s digital assets that are stored in the platform of the services by third-parties and the loss or theft of any digital assets and/or funds stored in the platform of the services and any associated accounts, including such User’s linked bank account(s) and credit card(s). The User shall be responsible for keeping their email address and telephone number up to date in their user profile in order to receive any notices or alerts that CoinDCX may send to the User. CoinDCX assumes no responsibility for any loss that a User may sustain due to compromise of account login credentials due to no fault of CoinDCX and its affiliates and/or failure to follow or act on any notices or alerts that CoinDCX may send to such User. In the event of a compromise of any of the digital assets stored in the platform of the services, the relevant User should contact CoinDCX immediately.
The legal character of cryptocurrency and cryptographic assets remain uncertain. There is a risk that digital assets may be considered securities in certain jurisdictions, now or in the future. CoinDCX and its affiliates do not provide any warranty or guarantee as to how any of the digital assets will be classified, and each User will bear all consequences of digital assets being considered securities in their respective jurisdictions, and bear the responsibility of the legality, purchase, and transfer of the digital assets in the relevant jurisdictions.
No Investment Advice
CoinDCX and its affiliates do not provide any investment advice or advice on trading techniques, models, algorithms, or any related aspects. No information on the Interface should be considered to be business, legal, financial or tax advice regarding the use of the services or the trading of digital Assets or fiat Currencies.
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